Business Structures
This term refers to a corporation's existence in a state other than the one where it was originally incorporated
What is a foreign corporation?
FOCI is not automatically disqualifying; its primary risk, which DCSA seeks to negate, is the potential for this.
What is unauthorized access to classified information or adverse influence on contract performance?
This is the form an individual fills out for a security clearance, where they must disclose foreign contacts and affiliations, which is a key source for FOCI analysis.
What is the SF-86 (Questionnaire for National Security Positions)?
Foreign Government/entity with Majority Stake OR Significant Threat OR if the facility refuses to participate in a NID; At least 3 cleared US Proxy Holders required; foreign owner conveys voting rights to proxy; No Inside Directors; complete independence from foreign entity; GSC required; FOCI Supplement and GSC required, as needed
What is Proxy Agreement?
A statement like "We judge with moderate confidence that the project is likely to fail" correctly implements two key components of this analytic standard.
What is "Expressing Uncertainty"?
An LLC can elect to be taxed like this type of corporation to avoid self-employment taxes on distributions, but it's limited to 100 shareholders and one class of stock.
What is an S Corporation?
This initial document is submitted to DCSA by a company to report potential FOCI, triggering the due diligence and review process.
What is a FOCI submission package or certificate?
This is the DCSA online portal used by Facility Security Officers (FSOs) to report FOCI and manage their facility's clearance.
What is the National Industrial Security System (NISS)?
For minor influence concerns, DCSA may accept this simple document from the company's board affirming its security commitments as a valid mitigation plan
What is a Board Resolution?
Terms like "likely," "unlikely," and "even chance" are all examples of this required vocabulary.
What are "Words of Estimative Probability" (WEPs)?
A business arrangement where two or more independent companies pool their resources to accomplish a specific task or project for a limited time.
What is a Joint Venture?
The state in which a cleared company is determined to be under FOCI to a degree that poses an unacceptable national security risk is known as this.
What is "unmitigated FOCI"?
Before a foreign company can acquire a cleared U.S. firm, it must typically agree in principle to a FOCI mitigation plan with DCSA as part of this parallel, and more public, government review process.
What is the Committee on Foreign Investment in the United States (CFIUS) review?
A key feature of both SSAs and Voting Trusts is the appointment of these DCSA-approved U.S. citizens to the board to ensure independent security oversight.
What are Outside Directors?
In addition to the likelihood of an event, this standard requires analysts to express their level of "____________" in the judgment itself, based on the scope and quality of the information.
What is confidence (e.g., high, moderate, low confidence)?
This is the legal document filed with the state government to officially create a corporation.
What are the Articles of Incorporation (or Corporate Charter)?
If a foreign entity has the power to appoint a majority of a company's board of directors, it exhibits this FOCI factor
What is Foreign Control?
When a company is operating under a formal FOCI mitigation agreement, it must provide this type of report to DCSA on a regular basis, detailing its compliance.
What is an Annual Report or Annual Compliance Report?
To completely insulate a foreign-owned subsidiary, this legal instrument transfers the foreign owner's voting rights to DCSA-approved U.S. citizens.
What is a Voting Trust Agreement or a Proxy Agreement?
This type of cognitive trap occurs when analysts unconsciously seek out or give more weight to information that confirms their pre-existing beliefs or initial hypothesis.
What is confirmation bias?
A business arrangement where two or more independent companies pool their resources to accomplish a specific task or project for a limited time.
What is a Joint Venture?
A situation where a foreign lender can declare a default on a major loan, thereby gaining power over a cleared company's business decisions, is a subtle but critical example of this FOCI factor
What is Foreign Control (or Influence)?
If a company discovers a potential FOCI issue, it must submit this to DCSA, outlining the nature of the foreign ownership, control, or influence
What is a FOCI Submission Package?
A primary function of the Government Security Committee (GSC), established under an SSA, is to ensure that no FOCI-related issues can adversely affect the performance of these.
What are classified contracts?
If an analyst fundamentally disagrees with a coordinated position, their alternative analysis must be included in the final product. This dissenting section is formally called this.
What is an "alternative view" or a "dissenting opinion"? (often presented in a "rebuttal" or "alternative analysis" box)