The Department of Defense (DOD) is considering new regulations that may impact non-US contractors, including companies like Lenovo, NTT Data, and Thales. These regulations would require foreign contractors to undergo Foreign Ownership, Control, or Influence assessments before they can receive unclassified defense contracts.
Alexander Hastings from The Capitol Forum discussed these potential changes and their implications. “The proposed rules could significantly complicate federal government contracting by requiring additional disclosures, reviews and mitigation measures, which could prove burdensome,” he explained.
Hastings emphasized the importance of industry involvement in shaping these regulations. “At the end of the day, the industry still has time to weigh in and help ensure the new rules are realistic and compliance is achievable,” he said. He also noted that “the U.S. government will have to assess whether the current scope of the rules is truly enforceable.”
These developments could influence the operations of non-US contractors seeking defense contracts with the US government.
