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This part sets forth industrial security procedures and practices related to foreign ownership, control, or influence (FOCI) for U.S. Government activities to ensure maximum uniformity and effectiveness in DoD implementation of the National Industrial Security Program (NISP), in accordance with Executive Order 12829. DoD allows foreign investment consistent with the national security interests of the United States, as established by Executive Order 11858. DoD FOCI procedures are used to protect against foreign interests gaining unauthorized access to classified, export-controlled, or all communications security information (classified or unclassified), adversely affecting the performance of classified contracts, and undermining U.S. security and export controls.

The interim final rule currently in effect now duplicates a proposed amendment to 32 CFR Part 2004, NISP Directive” by the National Archives and Records Administration (NARA). The Director of NARA’s Information Security Oversight Office (ISOO) is responsible for implementing and monitoring Executive Branch implementation of the NISP, and the content of part 117 is more appropriately addressed in part 2004.  Once the amendment to part 2004 is complete, this final rule will remove part 117.