Foreign Ownership, Control, or Influence (FOCI)

About FOCI

It is DOE policy to obtain information that indicates whether offerors/bidders or contractors are owned, controlled, or influenced by a foreign person and whether as a result the potential for undue risk to the common defense and national security may exist. (DOE Order 0 470.1, Chapter VI)

Foreign ownership, control, or influence (FOCI) determinations are required of the following:

1. Contractors, including any industrial, educational, commercial, or other entity, grantee, licensee, or an individual, that have 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.
2. All tier parents, if the contractor is owned or controlled by another firm(s).
3. A favorable FOCI determination must be rendered on the prospective contractor and, if applicable, its tier parents, prior to the Lead Responsible Office granting a facility clearance or contract requiring access authorizations.

Before a contractor employee may be "Q" or "L" cleared, his/her company must be FOCI-certified and have a company/facility code. Los Alamos National Laboratory is required to comply with the Department of Energy (DOE) Order 0 470.1,chapter 6, FOCI Program. This program is designed to obtain information to determine whether or not an offeror's/contractor's business is owned, controlled, or influenced by foreign individuals, governments, or organizations, and whether or not such foreign involvement may pose an undue risk to the common defense and security of the United States.

Facility Codes

DOE Headquarters maintains a database of all companies/facilities that work with classified information/material or whose employees hold DOE clearances. This database is called the Safeguards and Security Information Management System (SSIMS). The facility code assigned to each company/facility is its tracking number in the SSIMS database. The company or facility is registered on a form called the Facility Data and Approval Record (FDAR) and entered into SSIMS by DOE. Once a facility code has been assigned, it stays with that particular company/facility until the company has no active DOE contracts. Effective October 1994, all companies must be register to include their tiers.

Foreign Ownership, Control, or Influence (FOCI)Reporting Requirements

A contractor with a facility clearance is required to ensure that the following notification for its organization and each of its tier parents is immediately provided to the Lead Responsible Office via Contracting Administrator and/or to S-6 FOCI POC, 665-1624, MS B236.

1. Written notification of a change in the extend and nature of FOCI that affects the information in the FOCI representations and certification.
2. Complete, current, and accurate information, certifications, and explanatory documentation that define the extent and nature of any relevant FOCI whenever:
• there is any change in ownership or control;
• 5 years have elapsed since the previously provided FOCI representations and certification were executed;
• or the Lead Responsible Office advises that it considers that a relevant change in the nature of the FOCI has occurred.
3. Written notification of anticipated changes that include, but are not limited to, the following:
• action to terminate the contractor organization or any of its parents for any reason;
• imminent adjudication of or reorganization in bankruptcy of the contractor organization or any tier parents;
• discussions or consultations with foreign interests that may reasonably be expected to lead to the introduction or increase of FOCI;
• negotiations of the sale of securities to a foreign interest that may lead to the introduction or increase of FOCI.

Questions related to FOCI should be addressed to the Contract Administrator (BUS buyer), the BUS-5 Point of Contact (POC) at 665-2254, or the S-6 POC at 665-1624.

Reporting FOCI Significant Changes

When a change(s) in the extend and nature of FOCI that would affect the information in a contractor's and/or any tier parents' most recent DOE FOCI submissions(s) has occurred, the contractor/parent shall immediately provide written notification and supporting documentation relevant to the changes to the DOE Lead Responsible Office via Contractor Administrator or S-6, FOCI POC, 665-1624, MS B236. A significant FOCI increase/change that warrants processing of the contractor/parent for a new FOCI determination includes, but is not necessarily limited to, the following:

Questions related to FOCI should be addressed to the Contract Administrator (BUS buyer), the BUS-5 Point of Contact at 665-2254, or the S-6 POC at 665-1624.

Annual Certification

Each contractor holding a facility clearance shall certify annually to the Lead Responsible Office that:

1. no significant changes have occurred in the extend and the nature of FOCI that would affect the organization's answer to the questions provided in its FOCI representations.
2. no changes have occurred in the organization's ownership.
3. no changes have occurred in the organization's officers, directors, and executive personnel.

An organization will be considered under FOCI when a foreign person has the power, direct or indirect, whether or not exercised, and whether or not exercisable through ownership of the organization's and/or it tier parents' securities, through indebtedness, by contractual arrangements, or other means, to direct or decide matters affecting the management or operations of that organization in a manner that may result in the compromise of classified information or unauthorized access to nuclear and other hazardous material presenting a potential radiological or toxicological sabotage threat or that my adversely affect the performance of contracts requiring access authorizations.

A Facility Security Officer must be appointed and if applicable, a Materials Control and Accountability Representative. The Facility Security Officer must possess a access authorization equivalent with the facility clearance. Access authorizations for appropriate personnel. Key management personnel must be determined case by case. The Lead Responsible Office FOCI Operations manager, in conjunction with the Facility clearance Operations Manger, is responsible for determining an organization's key management personnel. Key management personnel must posses access authorizations equivalent with the level of the facility clearance.

Contract Security Classification Specification (CSCS)

The alternate certification has been replaced with the CSCS form, DOE Form 5634.2. This took place October 1, 1996. Every security activity i.e., contract, memo of understanding (MOU), memo of agreement (MOA), and work for others (WFO), that requires access to SNM, classified information, material and or access authorizations (clearances) must be registered in SSIMS via CSCS Form (DOC).