Supply Chain Analysis

FOCI and Compliance Risk

Department of the Navy

Updated March 2024

Primes with 889 or 1260H Compliance Violations

4,689

Chinese Connected Tier 1 Suppliers

Primes with Chinese Connected Owners or Investors

2,500

Active Contracts over $10M

FOCI and Compliance Risk: U.S. Navy

Ark.ai conducted a supply chain analysis of the Department of the Navy, 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 Navy resulted in the following statistics. There are 4 Primes with 889 or 1260H Compliance Violations. The count of Chinese Connected Tier 1 Suppliers is 4,689 and the number of Primes with Chinese Connected Owners or Investors is 12.

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
Pall Aeropower Corporation	$9,623,677	76	33
Beckman Coulter, Inc.	$6,333,485	281	29
Beckman Coulter, Inc.	$5,733,967	167	10
Cepheid	$3,080,534	40	20
Sea-Bird Electronics, Inc.	$1,860,147	43	11

Top Common Tier 1 Suppliers

Name	Count of Common Primes	Dollars Awarded to Primes	Count of Prime Contracts
Carahsoft Technology Corp.	217	$487,916,248	1,697,402
CDW Government LLC	175	$122,412,204	633,342
Booz Allen Hamilton Inc.	175	$4,202,230,772	50,941
Dell Marketing L.P.	175	$991,737,277	104,506
Dell Federal Systems L.P.	160	$105,057,490	233,972

Top Contracts with Chinese Connected Suppliers

Contract ID	Supplier Name	Dollars Awarded	Funding Office
N3220518C3101	Qingdao Cimc Special Reefer Co Ltd	$28,684,400	MSC Norfolk
N6833520F0625	Shenzhen Hongfu Mould Co Ltd	$21,813,168	NAVAIR Warfare Ctr
HC108421F0164	Changzhou Runfu Electron Co Ltd	$21,616,023	NIWC Pacific
N3220518C3101	Qingdao CIMC Special Reefer Co., Ltd.	$21,185,354	MSC Norfolk
HC108421F0164	Changzhou Runfu Electron Co Ltd	$18,747,418	NIWC Pacific

Top Primes with Non-U.S. Revenue

Name	Non-US Revenue %	Dollars Awarded	Primary Funding Office
Microsoft Corp	50.10%	$447,522,910	USN
Tokyo Gas Co Ltd	98.90%	$80,152,128	USN
Leonardo SPA	73.10%	$70,382,717	USN
PTC Inc	55.30%	$54,802,120	USN
Ansys Inc	54.50%	$22,564,696	NASA SSC

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.