Defense Federal Acquisition Regulation Supplement: Mitigating Risks Related to Foreign Ownership, Control, or Influence (DFARS Case 2021-D011) - Foundation for Defense of Democracies
New DFARS rule tightens restrictions on foreign ownership, control, or influence (FOCI) for defense contractors, requiring enhanced disclosures and mitigation measures.
Aforeworn detected this change in the Government Contracting (SAM/FAR) space on July 6, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Defense contractors, especially those with foreign ownership or ties, and small businesses seeking set-asides. should confirm how it applies to their specific situation before acting. There is a time constraint attached: Effective 60 days after publication in Federal Register; compliance required for new contracts.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Government Contracting (SAM/FAR) continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
DFARS Case 2021-D011 introduces stricter FOCI mitigation requirements, including mandatory disclosure of foreign ownership and potential exclusion from contracts if risks are not mitigated.
Who it affects
Defense contractors, especially those with foreign ownership or ties, and small businesses seeking set-asides.
What you must do
Review current FOCI status, update disclosures in SAM.gov, and implement mitigation plans if foreign ownership exists.
Deadline
Effective 60 days after publication in Federal Register; compliance required for new contracts.
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