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 https://www.linkedin.com/in/erin-estevez-96a09236/

DoD Proposed Rule on Mitigating Risks Related to Foreign Ownership, Control, or Influence https://www.federalregister.gov/documents/2026/05/07/2026-09067/defense-federal-acquisition-regulation-supplement-mitigating-risks-related-to-foreign-ownership

SF 328 https://www.gsa.gov/reference/forms/certificate-pertaining-to-foreign-interests

S.4648 - A bill to improve transparency with respect to foreign influence on Department of Defense contractors https://www.congress.gov/bill/119th-congress/senate-bill/4648/text

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

Go to http://govconintelligence.com for a full transcript

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.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.govconintelligence.com