FED GOV CON - Facility Clearances And Working With DSS

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FED GOV CON Webinar Wednesdays 2019 Series JSchaus & Assoc. Washington DC +1–202–365–0598


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About Our Speaker: Margaret M. Cassidy Education: Miami University, BS Finance University of Pittsburgh School of Law, JD Admitted to practice law: DC, OH, PA Company Name: Cassidy Law PLLC


Facility Clearances & Working with Defense Security Services


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Completing Facility Clearance Application Process -Complete on-line questionnaire about the business seeking clearance -Done so DSS (Defense Security Service) can evaluate risk to classified contracts -Information requested must be accurate, truthful and complete -Includes: Phone interview, site visit and online registration -DSS views itself as a collaborative partner with the cleared community


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates

Foreign Ownership, Control and Interest – FOCI Must disclose and manage foreign ownership, control and interest FOCI means: a non-U.S. person or entity has the power, directly or indirectly, to control a company’s operations which may result in unauthorized access to classified information or may adversely affect the performance of classified contracts. (32 C.F.R. part 117, subpart C)


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates ďƒ˜

Example Information Required by DSS: -Business structure, CAGE codes, EIN, address, and DSS Office -Each entity or person which directly or indirectly owns 5 percent or more of the business -List of key management personnel, directors, officers, shareholders and whether non-US person -Certificate pertaining to foreign ownership -Details about any foreign ownership -Identify and explain any relationships with foreign entities that executives or owners have with foreign entities and foreign persons -Identify and explain any foreign offices


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 

Example of Documents Required: -Organization chart and personnel organization chart -By-laws, state certificate of good standing -Board resolutions excluding leaders, owners, employees who do not have a clearance -Board meeting minutes discussing clearance and establishing leadership knowledge of clearance process -Contracts, sales agreements, subcontracts, any agreement with non-US entities or persons -Proof of compliance with export regulations – IT systems and hard copies RESOURCE: dss.mil


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 

Examples of Foreign Interest Disclosure: -Is there any foreign interest in the organization? Organization chart and personnel organization chart -Any agreements with foreign entities as clients, business partners, loans, investments, accounts with banks – ANY -Income derived from foreign entities -Descriptions of these relationships -Any factor that may demonstrate, establish – foreign ownership, control, or interest


2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 

Security Agreement with DSS: -Can develop an agreement with DSS to manage the influence of non-US entities or persons -Can develop an agreement with DSS to manage relationships with non-cleared business partners, affiliates, etc. -Start by assessing how is there non-US entities or persons involved -Evaluate each function in the organization: finance, legal, business development, facilities, etc. -Describe how the non-US entity/person or non-cleared entity is involved -Describe the “risk” of classified information being compromised or the cleared entity’s independence being compromised -Explain how the cleared entity will manage the risk of classified information being compromised


THANK YOU! JSchaus & Assoc. Washington DC hello@JenniferSchaus.com www.JenniferSchaus.com +1–202–365–0598 Speaker: Margaret M. Cassidy Email: m.cassidy@cassidylawpllc.com Phone: 202-266-9928


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