Trusted Capital Digital Marketplace Application

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
0704-TCDM_SSA_12.2.2020.docx	Supporting Statement A	Uploaded 2020-12-03	Available
Paperwork Reduction Act Waiver Request - OUSD AS - Info Memo to OMB.docx	Supplementary Document	Uploaded 2020-12-03	Available
0704-TCDM_DraftPIA_12.1.2020.pdf	Supplementary Document	Uploaded 2020-12-02	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
244471	Trusted Capital Digital Marketplace Application	Other-Web Form	New

ICR Details

OMB Control No: 0704-0596	ICR Reference No: 202011-0704-004
Status: Active	Previous ICR Reference No:
Agency/Subagency: DOD/DODDEP	Agency Tracking No: 0704-TCDM
Title: Trusted Capital Digital Marketplace Application
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 12/18/2020
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/10/2020
	Date Received in OIRA: 12/08/2020
Terms of Clearance: This collection is approved for 6 months only. Should DOD want to use this collection for more than 6 months, DOD must publish a 60 and 30 day notice.

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	06/30/2021	6 Months From Approved
Responses	300	0	0
Time Burden (Hours)	450	0	0
Cost Burden (Dollars)	22,649	0	0

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Abstract: The Office of the Under Secretary of Defense for Acquisition and Sustainment (OUSD(A&S)) has proposed a “Trusted Capital” initiative in the form of a public-private partnership designed to convene trusted sources of private capital with innovative companies critical to the defense industrial base (DIB) and national security. The initiative includes establishment of a Trusted Capital Digital Marketplace (TCDM) to facilitate business relationships between eligible investors (“Capital Providers”) and eligible small and medium-sized businesses that have been “downselected” by Department of Defense (DoD) Components based on relevancy, technical merit, business viability, or innovativeness (“Capability Providers”). Information collected will be used in determining an applicant’s eligibility for TCDM participation. Parties will complete an electronic application and be subjected to a due diligence screening process to assess for adversarial foreign ownership, influence, or control–as well as other national security risks. Applicants that receive a favorable due diligence screening adjudication by OUSD(A&S) will be approved for TCDM participation. In addition to initial application requirements, participants will be subject to continuous reporting obligations.

Emergency Justfication: Trusted Capital (TC) is an Undersecretary of Defense for Acquisitions and Sustainment (USD (A&S)) program to strengthen the Defense Industrial Base (DIB) and limit the threat posed by adversarial capital on national security. The Trusted Capital program provides small to medium sized technology companies with a wide range of capital solutions via national security due diligence that is conducted on capital providers, to limit foreign access to critical technology through foreign investments. Through the Trusted Capital (TC) program, DoD can strengthen and illuminate early-stage supply chain risk and address critical DoD technological needs, while ensuring the DIB is free from adversarial capital or involvement. The Department of Defense requests a temporary six-month waiver from the requirements imposed by the Paperwork Reduction Act to launch its Trusted Capital Digital Marketplace. This marketplace will immediately begin to strengthen and illuminate early-stage supply chain risk and address critical DoD technological needs, while ensuring the DIB is free from adversarial capital or involvement in the national security critical market sectors. This request is in alignment with the National Defense Authorization Act (NDAA) FY2020, S.845 “Modernization of acquisition processes to ensure integrity of industrial base” and NDAA FY2020 S.847 “Mitigating risks related to foreign ownership, control, or influence of Department of Defense contractors or subcontractors.” This temporary waiver would also support Implementation of Executive Order 13924 “Regulatory Relief to Support Economic Recovery.” As recently as Dec 2, 2020 in a report in the Financial Times, “Chinese state-backed funds are still scouring the US for investments in critical technologies despite stiffer restrictions on such deals, prompting bipartisan concern in Washington over the national security implications. Pixelworks, Black Sesame Technologies and LightIC Technologies, three companies’ in the sensitive US semiconductor sector, have attracted investment in recent months from some of China’s so-called government-guided funds. The strategic investment funds, which number more than 1,600 are estimated to control more than Rmb4tn ($610bn) in capital, according to Chinese consultancy Zero2IPO.” The United States stands to lose additional important companies to adversarial capital if another six months passes without this program being launched. Time is of the essence to create and re-shore critical domestic capability with vetted and trusted capital suppliers. The United States cannot afford to lose additional innovative small businesses to adversarial capital nor be forced into further supply chain dependencies for our most critical national security technologies by our adversaries.

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Authorizing Statute(s): US Code: 10 USC 2501 Name of Law: National security objectives concerning national technology and industrial base
   PL: Pub.L. 115 - 91 1711 Name of Law: National Defense Authorization Act for Fiscal Year 2018
   PL: Pub.L. 116 - 92 845 Name of Law: National Defense Authorization Act for Fiscal Year 2020
   PL: Pub.L. 115 - 91 1711 Name of Law: National Defense Authorization Act for Fiscal Year 2018
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 77187	12/01/2020
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

table that charts list of burden

IC Title	Form No.	Form Name
Trusted Capital Digital Marketplace Application

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ICR Summary of Burden

table that charts list of burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	300	0	0	300	0	0
Annual Time Burden (Hours)	450	0	0	450	0	0
Annual Cost Burden (Dollars)	22,649	0	0	22,649	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: This is a new collection with a new associated burden.

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Annual Cost to Federal Government: $2,517,307

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Yes

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 12/08/2020

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