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The National Industrial Security Program (NISP) proposes three options for companies to mitigate FOCI issues depending on the level and participation of the foreign ownership.
These options were developed for larger companies with substantial time, resources and capital to implement.
Tech startups, looking for quick access to US Federal Marketplace, are quickly faced with a two-year bureaucratic process requiring millions of dollars in investment with little to no revenue.
FOCI mitigation is the tip of the iceberg with continuous follow-on coordination, reporting, and justification with DCSA responding to National Interest Determination requests https://www.dcsa.mil/mc/ctp/foci/nid/
The most likely outcome is the creation of a self-sustaining and financially viable subsidiary with limited visibility and control by the parent company, severely hindering momentum, culture and morale.
Option 1: Board Resolution (BR)
Option 2: Special Security Agreement (SSA) or Security Control Agreement (SCA)
Option 3: Proxy Agreement (PA) or Voting Trust Agreement (VTA)
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