OFAC compliance
Defense and government contractors face OFAC compliance obligations that go well beyond standard sanctions screening, with the Office of Foreign Assets Control and the Defense Contract Audit Agency both scrutinizing vendor networks, foreign subcontractor relationships, and beneficial ownership disclosures at the contract level. A 2023 OFAC enforcement pattern targeting defense-adjacent firms for third-party exposure through foreign national distributors put the sector on notice that indirect dealings count. Compliance teams are now mapping subcontractor chains against the SDN List and reviewing foreign military sales agreements for prohibited-party exposure before contract renewals land.
Watch
- OFAC 50 Percent Rule: beneficial ownership screening for foreign subcontractors
- DCAA audits increasingly flagging SDN-adjacent vendor payments in contract reviews
- FAR 52.225-26 compliance gaps in contractor-supplied foreign national labor arrangements
- Proposed expansion of sectoral sanctions to defense-adjacent technology supply chains
- Russia/Belarus prohibitions: active enforcement against indirect procurement pathways
Recent material activity in Defense & Government Contracting
GAO dismisses Aero Simulation bid protest challenging Air Force exclusion from competitive range
The Government Accountability Office dismissed Aero Simulation, Inc.'s protest on September 4, 2026 in B-424444, ending the challenge to the Department of the Air Force's decision to exclude ASI from further consideratio…
Read a full sample brief →ASPI strategic analysis identifies space AI as a capability solution for Southeast Asia's maritime surveillance deficit
The Australian Strategic Policy Institute published an analysis on September 4, 2026 examining how artificial intelligence and orbital surveillance technologies could address maritime domain awareness gaps in Southeast A…
Read a full sample brief →UKDI launches Project PANOPTES competition seeking integrated counter-drone force-protection capabilities with £5 million available
UK Defence Innovation published Project PANOPTES on 3 September 2026, a Ministry of Defence-backed Themed Competition seeking integrated counter-uncrewed aerial system force-protection capabilities. Stage 1 submissions c…
Read a full sample brief →ASPI Fault Lines edition covers South Korean exercises, Paracel Islands construction, and Pacific Islands Forum tensions
The Australian Strategic Policy Institute published its fortnightly Fault Lines security monitor on September 2, 2026, covering August 21 to September 3, 2026. The edition addresses regional order developments including …
Read a full sample brief →UKDI launches Project PANOPTES competition seeking integrated counter-drone force-protection solutions with £5 million available
UK Defence Innovation launched Project PANOPTES on 2 September 2026, a Themed Competition run on behalf of the Ministry of Defence seeking integrated counter-uncrewed aerial system force-protection capabilities. Stage 1 …
Read a full sample brief →ASPI commentary flags National Cabinet data centre siting gap as unresolved policy question
The Australian Strategic Policy Institute published commentary on September 2, 2026 finding that National Cabinet addressed data centre power sourcing but left siting policy unresolved. ASPI identifies the absence of a f…
Read a full sample brief →Australian Government awards Babcock Australia $129 million Anzac class frigate sustainment contract as Capability Life Cycle Manager
The Australian Government has awarded Babcock Australia a contract exceeding $129 million to sustain the Royal Australian Navy's Anzac class frigates. Announced on September 2, 2026, the contract appoints Babcock Austral…
Read a full sample brief →GAO sustains GSI Pacific protest over Navy NAVFAC elimination from competitive range
On September 1, 2026, the GAO issued a bid protest decision resolving GSI Pacific Inc.'s challenge to the Navy Facilities Engineering Command's elimination of the firm from a competitive range. The decision addresses whe…
Read a full sample brief →ASPI analysis calls for formal Australia-US bilateral Defence Guidelines under the ANZUS framework at its 75th anniversary
The Australian Strategic Policy Institute published a commentary on September 1, 2026 recommending that Australia and the United States develop bilateral Defence Guidelines to strengthen Australia's deterrence architectu…
Read a full sample brief →Taiwan's legislature authorizes drone program funding under hedgehog defense strategy amid U.S. pressure
Taiwan's Legislative Yuan has passed legislation authorizing funding for the government's drone acquisition and development program, with a deadline of August 31, 2026. The authorization supports President Lai Ching-te's…
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