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Foreign Ownership, Control or Influence (FOCI)
Foreign investment can play an important role in maintaining the vitality of the U.S. industrial base. Therefore, it is the policy of the U.S. Government to allow foreign investment consistent with the national security interest of the United States.
A Company is considered to be operating under FOCI whenever a foreign interest has the power, direct or indirect, whether or not exercised, and whether or not exercisable, to direct or decide matters affecting the management or operations of that company in a manner which may result in unauthorized access to classified information or may adversely affect the performance of classified contracts.
The following factors relating to a company, the foreign interest, and the government of the foreign interest are reviewed in the aggregate in determining whether a company is under FOCI:
- Record of economic and government espionage against U.S. targets,
- Record of enforcement and/or engagement in unauthorized technology transfer,
- The type and sensitivity of the information that shall be accessed,
- The source, nature and extent of FOCI,
- Record of compliance with pertinent U.S. laws, regulations and contracts
- The nature of any bilateral and multilateral security and information exchange agreements that may pertain
- Ownership or control, in whole or in part, by a foreign government.
The material contained on the FOCI web pages are pertinent to the mitigation of U.S. companies (cleared or in-process for a facility security clearance), participating in the National Industrial Security Program and operating under Foreign Ownership, Control or Influence (FOCI). Please keep in mind that the sample documents provided are for informational purposes only and that each company's FOCI factors must be evaluated by DSS on a case-by-case basis before FOCI mitigation and the stipulation of your agreement is finalized. If you have specific questions regarding the mitigation of FOCI present at your company, your initial contact should be with your servicing Industrial Security Representative. The National Industrial Security Program Operating Manual, Chapter 2, Section 3 also provides additional information regarding FOCI.