FOCI: The Next Small Business Compliance Bomb (with Erin Estevez)

Erin Estevez has a warning for Defense contractors—if you think you’re in the clear because of the CMMC Phase 2 pause, you may not be ready for what’s next. A new compliance regime is right around the corner. And the soon-to-be-required disclosures on Foreign Ownership, Control, and Influence (FOCI) are much broader than the name suggests. If you have a contract with a foreign company, an overseas investor, or an employee on Visa status, you will probably need to comply. These rules will be especially important for firms seeking VC or private equity investment. Erin joined me on GovCon Intelligence to explain how far the FOCI disclosures will reach, how to comply with the tight 3-day deadlines, and what DCSA is planning to do with the coming onslaught of cases. This is definitely an area to pay attention to as the military tries to attract nontraditional contractors and small businesses. Links Erin Estevez on LinkedIn   / erin-estevez-96a09236   DoD Proposed Rule on Mitigating Risks Related to Foreign Ownership, Control, or Influence https://www.federalregister.gov/docum... SF 328 https://www.gsa.gov/reference/forms/c... S.4648 - A bill to improve transparency with respect to foreign influence on Department of Defense contractors https://www.congress.gov/bill/119th-c... Chapters 00:00 - Introduction to GovCon and FOCI Rules 01:16 - Current Tracking of Foreign Ownership, Control, and Influence 04:05 - The Proposed Expansion of the FOCI Regime 06:29 - Deep Dive into Standard Form 328 (SF-328) 11:11 - Impact on Commercial Acquisitions 12:51 - M&A Activity and Investor Disclosure Obligations 17:04 - Pre-Transaction Engagement and Mitigation Strategies 20:33 - Post-Award Monitoring and Compliance 21:55 - The Three-Day Reporting Rule and Tight Timelines 25:40 - Supply Chain and Subcontractor Flow-Down Responsibilities 27:34 - Consequences of Non-Compliance and Enforcement Risks 29:33 - Case Volume Explosions and Acquisition Bottlenecks 32:55 - Legislative Interest and Policy Trajectories 36:15 - Small Business Compliance Burdens and Front-Loaded Costs 41:13 - CMMC Parallels and Future Rule Predictions 43:25 - Guest Outro and Contact Information With 20 years of Federal legal experience, Sam Le counsels small businesses through government contracting matters, including bid protests, contract compliance, small business certifications, and procurement disputes. Sam received his law degree from the University of Virginia and formerly served as SBA’s director of procurement policy. His website is www.samlelaw.com. This video is for informational purposes only and does not constitute legal advice.