Trusted Capital Digital Marketplace Application

ICR 202011-0704-004

OMB: 0704-0596

Federal Form Document

Forms and Documents
Document
Name
Status
Supporting Statement A
2020-12-03
Supplementary Document
2020-12-03
Supplementary Document
2020-12-02
IC Document Collections
ICR Details
0704-0596 202011-0704-004
Active
DOD/DODDEP 0704-TCDM
Trusted Capital Digital Marketplace Application
New collection (Request for a new OMB Control Number)   No
Emergency 12/18/2020
Approved without change 12/10/2020
Retrieve Notice of Action (NOA) 12/08/2020
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
  
None

Not associated with rulemaking

  85 FR 77187 12/01/2020
No

1
IC Title Form No. Form Name
Trusted Capital Digital Marketplace Application

  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
Yes
Miscellaneous Actions
No
This is a new collection with a new associated burden.

$2,517,307
No
    No
    No
No
No
No
Yes
Nicholas Schuff 757 817-7203 nicholas.a.schuff.ctr@mail.mil

  No

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.
12/08/2020


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