The public comment period for the long-awaited Defense Federal Acquisition Regulation Supplement (“DFARS”) proposed rule, “Mitigating Risks Related to Foreign Ownership, Control, or Influence” (the “proposed DFARS FOCI rule”), closed on July 6, 2026. But recent activity in Congress suggests that the Department of War (“DoW”)’s proposed rule may be only one part of a broader effort to expand the government’s visibility into and mitigation of foreign ownership, control, or influence (“FOCI”) risks across the defense industrial base. Taken together, the proposed DFARS FOCI rule and pending provisions in the House and Senate versions of the Fiscal Year (“FY”) 2027 National Defense Authorization Act (“NDAA”) could substantially extend FOCI-related scrutiny beyond the traditional universe of cleared contractors performing classified work.
Continue Reading Congress Considers Further FOCI Reforms as DoW Moves to Expand Disclosure Requirements for Unclassified Defense ContractorsFOCI
Senate Armed Services Committee Proposes Expansive but Unclear Software Review Provisions
As the Senate approaches the end of its debate on the National Defense Authorization Act for Fiscal Year 2019, provisions of the bill regarding access to and review of information technology code deserve close attention. These sections, if enacted, would significantly impact Department of Defense contractors and also would affect matters associated with investments subject to review by U.S. national security agencies.
As drafted, the provisions could expose current and prospective contractors to intrusive scrutiny and significant risks. They lack clarity on key definitions, leaving the precise scope of those risks unclear. We summarize major issues and concerns below. We expect these provisions to receive scrutiny during the House-Senate conference on the NDAA over the summer.
Continue Reading Senate Armed Services Committee Proposes Expansive but Unclear Software Review Provisions