Supply Chain Analysis

FOCI and Compliance Risk

Department of State

Updated March 2024

Primes with 889 or 1260H Compliance Violations

2,506

Chinese Connected Tier 1 Suppliers

Primes with Chinese Connected Owners or Investors

554

Active Contracts over $10M

FOCI and Compliance Risk: DOS

Ark.ai conducted a supply chain analysis of the Department of State, examining the vendors supporting the agency and their subcontractors, subsidiaries, list of suppliers, manufacturers, shippers, and other members of the supply chain. The resulting supplier analysis and supplier profile includes a compliance analysis, an evaluation of foreign ownership and investment and a comprehensive assessment of compliance risk and FOCI risk.

The analysis of DOS resulted in the following statistics. There are 5 Primes with 889 or 1260H Compliance Violations. The count of Chinese Connected Tier 1 Suppliers is 2,506 and the number of Primes with Chinese Connected Owners or Investors is 16.

Information about vendors with compliance violations, Chinese connections, and other supply chain risks are included in the following tables.

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Top Companies with 889 or 1260H Violations

Name	Dollars Awarded	Count of Awards	Count of Violations
Idemia National Security Solutions LLC	$170,851,995	70	1
China United Network Communications Corporation Limited Beijing branch	$1,490,605	32	1
Cepheid	$881,542	12	1
OTT HydroMet Corp	$309,180	8	1
Hach Company	$289,093	10	1

Top Common Tier 1 Suppliers

Name	Count of Common Primes	Dollars Awarded to Primes	Count of Prime Contracts
Carahsoft Technology Corp.	70	$324,040,349	1,705,598
Microsoft Corporation	70	$123,090,478	62,177
CDW Government LLC	55	$328,785,666	650,600
Dell Federal Systems L.P.	53	$607,333	57,702
DLT Solutions, LLC	52	$7,789,606	280,041

Top Contracts with Chinese Connected Suppliers

Contract ID	Supplier Name	Dollars Awarded	Funding Office
19AQMM20F2364	C&C Offset Printing Co Ltd	$22,133,421	BUREAU OF OVERSEAS BUILD OPS
19AQMM20F1063	Changzhou Runfu Electron Co., Ltd.	$8,165,579	BUREAU OF INFO RESOURCE MGT
19AQMM20F1038	Guangzhou Mingyue Packaging Machinery Co Ltd	$7,013,373	OFFICE OF MEDICAL SERV
19GE5023P0118	Quanzhou Lirong Bags Co Ltd	$6,694,111	BUREAU OF INTL NARCOTICS
191NLE23P0107	Quanzhou Lirong Bags Co Ltd	$6,151,624	BUREAU OF INTL NARCOTICS

Top Primes with Non-U.S. Revenue Greater than 50%

Name	Non-US Revenue %	Dollars Awarded	Primary Funding Office
Microsoft Corporation	50.1%	$123,090,478	PEO SOLDIER BELVOIR
Ariba Inc	50.0%	$1,943,723	BUREAU OF ADMIN
Telstra Corp Ltd	98.6%	$1,269,395	BUREAU OF EAST ASIAN & PAC
Global Knowledge Training LLC	58.7%	$608,484	USA ELE NATO SPEC OPS HQ
Apple Inc.	63.4%	$434,102	USAID

ABOUT FOCI AND COMPLIANCE RISK

Uncover foreign influence in vendor ecosystem across investors, ownership, key personnel, and geographic locations and unearth organizations in your ecosystem that are non-compliant with U.S. legislative regulations such as Section 889 or 1260H.

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EXPLORE ADDITIONAL ANALYSES

ABOUT ARK.AI

The Ark is the only software platform purpose-built for Defense Acquisition that leverages authoritative commercial data and AI-enabled Applications designed to solve Acquisition challenges. With the Ark, analysts and decision-makers gain the ability to manage Acquisition programs proactively, allowing them to unwind the legacy complexity and effectively field modern warfighting systems that compete with China.

The Leading Defense Acquisition Software.

OUR APPLICATIONS

AI-enabled Applications within The Ark reflect standard workflows across the Defense Acquisition Process. From Science & Technology to Modernization, these Applications allow for the execution of rapid, efficient, data-informed decisions, standardized reporting, and efficient workflow management. The Ark enables your team to transform Defense Acquisition into a strategic advantage.