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.
Inventory as of this Action
Requested
Previously Approved
06/30/2021
6 Months From Approved
300
0
0
450
0
0
22,649
0
0
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.
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.
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
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:
(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;
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.
0704-TCDM_SSA_12.2.2020.docx
0704-TCDM_DraftPIA_12.1.2020.pdf
Trusted Capital Digital Marketplace Application