Defense Federal Acquisition Regulation Supplement: Mitigating Risks Related to Foreign Ownership, Control, or Influence (DFARS Case 2021-D011)
Key claim: DoD proposes to amend DFARS to implement NDAA FY2020/2021 provisions mitigating risks from foreign ownership, control, or influence over defense contractors.
Abstract
(Proposed Rule · Defense Department, Defense Acquisition Regulations System) DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement sections of the National Defense Authorization Act for Fiscal Years 2020 and 2021 to mitigate risks related to beneficial ownership or foreign ownership, control, or influence. This proposed rule also implements elements of a DoD policy.
Why this matters
Foreign ownership, control, or influence (FOCI) mitigation is a core lever for the Defense Department to manage national-security exposure across the defense industrial base, and this proposed DFARS rule operationalizes statutory FOCI requirements enacted in NDAA FY2020 and FY2021. For contractors, the rule will likely mean new disclosure, certification, and mitigation-plan obligations tied to covered DoD awards, with fiscal impact via compliance costs and potential eligibility restrictions on foreign-affiliated firms.