For Companies Operating Under Approved FOCI Mitigation Plans: A Shared Services Plan Checkup Can Avoid Unnecessary Costs

Most cleared companies operating under formal agreements to mitigate or negate foreign ownership, control or influence ("FOCI") are familiar with the Affiliated Operations Plan ("AOP") or its predecessor, the Administrative Services Agreement ("ASA"). These plans allow cleared companies and their affiliates operating outside the agreement to share services that would otherwise be prohibited.

Prior to 2013, cleared companies submitted draft ASAs to the Defense Security Service ("DSS") (or other Cognizant Security Agencies) for approval of shared services, such as payroll processing, health insurance, 401K administration, certain human resources functions, and even legal services. In practice, ASAs were as varied as the companies that implemented them.