DOD Official Warns of Foreign Investments in Defense Industrial Base

The incoming Biden administration will deal with foreign adversarial investments in the U.S. defense industrial base, said Department of Defense acquisition chief Ellen Lord, a past Potomac Officers Club event speaker and 2020 Wash100 winner.

In a press conference, Lord said the early days of the coronavirus pandemic forced smaller defense companies to shift their focus from security to survival, FCW reported Wednesday.

“Things were happening so quickly; companies were concerned about the capability of staying in business and were taking loans from places they weren't 100% certain [of] their origins,” Lord said.

In December 2020, Lord first announced the Trusted Capital Marketplace program, which she said would improve the Pentagon's partnership with industries like the commercial satellite sector.

The Trusted Capital Marketplace serves as a platform for companies and venture capitalists to be checked for foreign interest and control.

Lord said the program provides opportunities for trusted industry partners and qualified companies to find new business opportunities that support the United States' national security goals.

“We need to maintain technical superiority. The Trusted Capital program will really change the game as we open things up for new technology. We want to get the best of breed technology. We want to put those companies in front of Trusted Capital providers that are interested in investing in innovation," Lord said during Via Satellite's MilSayCom Digital Week. 

Trusted finance partners may apply through the trusted capital landing page, while defense technology companies will be required to receive a recommendation during the security process, the DOD said in a press release.