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DoD Announces First Ever Strategy for a Modernized Defense Industrial Ecosystem

Client Alert | 1 min read | 01.16.24

On January 11, 2024, the Department of Defense (DoD) announced its first-ever National Defense Industrial Strategy (NDIS) focused on building a modernized industrial ecosystem that provides a sustained competitive advantage to the US over its adversaries.  Specifically, the NDIS provides a strategic framework to guide the DoD’s engagement, policy development, and investment in the industrial base over the next three to five years.  As part of this investment strategy, the NDIS highlights several investment tools and opportunities that DoD is already using to spur growth and innovation in key industries.

The DoD identified four strategic priorities to guide industrial action and resource prioritization:  (i) resilient and secure supply chains; (ii) workforce readiness; (iii) flexible acquisition to lead to the development of strategies that strive for dynamic capabilities while balancing efficiency, maintainability, customization and standardization in defense platforms and support systems; and (iv) economic deterrence to promote fair and effective market mechanisms that support a resilient defense industrial ecosystem among the U.S. and close international allies and partners, economic security, and integrated deterrence.  The DoD also outlined associated actions with, and potential risks of not achieving, each priority. 

Finally, the DoD highlighted systemic risks that may impact achieving these priorities, including an inadequate workforce and skilled workers in manufacturing and engineering careers, inadequate domestic production of key materials and production capacity, instability of procurement (e.g., compliance burdens, changing procurement priorities, and technological obsolescence), and funding uncertainty.

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Client Alert | 3 min read | 04.26.24

CFIUS Proposes Enhanced Enforcement and Mitigation Rules and Steeper Penalties for Non-Compliance

On April 11, 2024, the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) announced proposed amendments to its enforcement and mitigation regulations, marking the first substantive update to CFIUS’s mitigation and enforcement provisions since the enactment of the Foreign Investment Risk Review Modernization Act of 2018.  The Committee issued a notice of proposed rulemaking ("NPRM”) that would modify the regulations that apply to certain investments and acquisitions, as well as real estate transactions, by foreign persons as follows:...