The AFWERX RGI risk-based analysis program (also known as “due diligence” as it relates to Foreign Owner, Control, and Influence (FOCI) screening), is an intra-Air Force process which includes the AFWERX Capital Initiatives Division (RGI), the Office of Economic Analysis (OCEA), and the Office of Special Investigation (OSI).

• AFWERX RGI: Responsible for the overall process, timelines, and risk assessments. They collect data from OCEA and OSI to synthesize final risk-based assessment and make recommendations to award determination officials within AFWERX.
• OCEA: Conducts business assessment of all applicants. This business assessment utilizes commercially available information and publicly available information to highlight risk indicators. OCEA undertakes in-depth analytic assessments to identify and assess geostrategic risks that challenge U.S. Department of Defense equities and threaten to undermine current foundations of U.S. global power, leadership and national security. OCEA’s action-oriented analysis aims to inform U.S. government decision makers of the full range of options available to counter these risks.
• OSI: Conducts counterintelligence review of select high-risk companies based on risk indicators identified by OCEA. The Air Force Office of Special Investigations provides professional investigative service to commanders of all Air Force activities. AFOSI identifies, investigates and neutralizes criminal, terrorist, and espionage threats to Air Force and Department of Defense personnel and resources.

Note: RGI’s Due Diligence process makes recommendations, not determinations. Risk is evaluated by the award determination official (AFWERX Commanding Officer or their delegated officials).

Here are 10 key points that companies should know to prepare themselves for a FOCI due diligence review:

• Understand the Statutory Requirements: Familiarize yourself with the statutory requirements outlined in 15 U.S.C. § 638(g)(15)(B), which governs the denial of SBIR/STTR awards based on foreign connections.
• Complete the Mandatory Disclosure Form Accurately: Ensure you accurately complete the mandatory disclosure form “Disclosures of Foreign Affiliations or Relationships to Foreign Countries,” including providing supporting documentation for any disclosures made.
• Review Cybersecurity Practices: Assess your company’s cybersecurity practices and ensure they align with industry standards and best practices, as the DoD’s due diligence review will include an assessment of cybersecurity practices.
  Analyze Patent Activity: Conduct a thorough review of your company’s patent history, including any patents filed or granted in foreign countries of concern, paying close attention to patents resulting from USG-funded research.
• Analyze Patent Activity: Conduct a thorough review of your company’s patent history, including any patents filed or granted in foreign countries of concern, paying close attention to patents resulting from USG-funded research.
• Scrutinize Employee Affiliations: Carefully examine the affiliations of your employees, particularly those in leadership positions or with access to sensitive information, and identify any potential conflicts of interest or foreign affiliations that could raise concerns.
• Disclose Foreign Ownership and Financial Ties: Be transparent about any foreign ownership, control, or influence over your company, and provide detailed information about financial ties and obligations to foreign countries, persons, or entities.
  Prepare for Open-Source Analysis: Recognize that the DoD will use open-source analysis and analytical tools to assess potential risks, and ensure consistency between public information and disclosures made on the mandatory form.
• Prepare for Open-Source Analysis: Recognize that the DoD will use open-source analysis and analytical tools to assess potential risks, and ensure consistency between public information and disclosures made on the mandatory form.
• Develop Mitigation Strategies: Be proactive in identifying potential mitigation strategies for any identified risks related to foreign connections, including demonstrating how you will address conflicts of interest, protect sensitive information, or limit foreign involvement in critical aspects of the project.
• Be Prepared for a CI Review: Understand that the DoD may refer companies with potential FOCI to counterintelligence organizations for further review, and cooperate fully with any CI investigations.
• Stay Informed About Policy Updates: Stay informed about policy updates and guidance issued by the Defense SBIR/STTR Program Office and relevant DoD Components, as the DoD’s FOCI due diligence program is subject to change.