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  • Question

    What would the US entity have to do to comply with FAR, DFARs and SAMM requirements in order to be eligible for sole-source contract awards via FMS? Thanks!


    Answer

    Once the foreign company establishes a U.S. subsidiary -- i.e., a foreign-owned or controlled U.S. company affiliated with the foreign parent -- the U.S. subsidiary would be eligible for FAR, DFAR, and SAMM treatment.  For procurement purposes, they would be treated the same way as any other U.S. company.

    The only potential difference would be in the security area, since foreign owned or controlled U.S. companies may be subject to additional security-related controls established pursuant to the Committee on Foreign Investment in the U.S. (CIFIUS) process and associated DoD Foreign Ownership, Control, or Influence (FOCI) security measures.  Such security measures, if any are established, would only affect DoD classified contracting activities with the U.S. subsidiary, and would not affect its FAR/DFAR/SAMM treatment for unclassified FMS-related procurements. 


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