FOCI Reviews

FOCI Reviews

The Foreign Ownership, Control or Influence (FOCI) Program is based on Department of Energy (DOE) policy (described in DOE O 470.7, Chapter VI, Safeguards and Security Program and other applicable DOE Orders and Directives). The purpose of the FOCI Program is to obtain information that indicates whether offererors/bidders or contractors are owned, controlled, or influenced by a foreign person and whether as result the potential for an undue risk to the common defense and national security may exist. The FOCI Management Team processes requests for FOCI determinations, maintains a database for tracking/accounting for individual's requests and five-year renewals when appropriate for contractors/subcontractors.

FOCI determinations are required of the following:

Contractors, which include any industrial, educational, commercial, or other entity, grantee, or licensee, including an individual, that has executed an agreement with the Federal Government for the purpose of performing under a contract, license, or other arrangement that requires access authorizations. However, the foregoing does not include individuals performing work under a consulting agreement. This includes subcontractors of any tier, consultants, agents, grantees, and cooperative agreement participants.
All tier parents, if the contractor is owned or controlled by another firm(s).

FOCI Process:
Contractors and, if applicable, tier parents, subject to the FOCI requirments, will submit the following through their prime contractors.

Certificate Pertaining to Foreign Interest (CPFI) and relevant forms
Bylaws and Articles of Incorporation (these documents would be dependent on the organizational structure)
Annual Report with Financial Information (audited financial information in lieu of an annual report)
Complete, current and accurate information, certifications and explanatory documentation that define the extent and nature of any FOCI.

NOTE: A facility clearance, which includes a FOCI determination, can only be requested for the successful offeror/bidder if insufficient lead time is expected between selection and contract award to allow deferral of the review.

Having foreign ownership does not readily exclude a comany from obtaining a favorable determination. Actions can be taken to effectively negate or reduce associated FOCI risk to an acceptable level.

When a change in the extent and nature of FOCI that would affect the information in a contractor's and/or any tier parents' most recent DOE FOCI submission(s) occur, the contractor/parent immediately provides written notification and supporting documentation relevant to the changes to the FOCI Management Team. A significant FOCI increase/change that warrants processing of the contractor/parent for a new FOCI determination includes, but is not limited to, the following:

A new threshold or factor that did not exist when the previous determination was made (e.g., a No answer changes to a Yes answer), and any additional factors associated with the questiosn on the FOCI Certificate Pertaining to Foreign Interests.

A previously reported threshold or factor that was favorably evaluated by the FOCI Management Team has increased to a level requirining a determinatin by the DOE Headquarters Office of Safeguards and Security (OSS).

A previously reported financial threshold or factor that was favorably evaluated has increased by 5 percent or more; a shift has occurred of 5 percent or more by country location or end user (i.e., for revenue) or lenders (i.e., indebtedness).

A previously reported foreign ovwnership threshold or factor that was favorable evaluated by the OSS has increased to the extent that a method of negation or reduction is necessary.

Any changes in the ownership or control of the contractor and/or any tier parents.