Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 79271 

(v) Prior Related Cases, if any: AT–P– 

LGN, AT–P–LGL (P&A) 

(vi) Sales Commission, Fee, etc., Paid, 

Offered, or Agreed to be Paid: None 

(vii) Sensitivity of Technology 

Contained in the Defense Article or 

Defense Services Proposed to be Sold: 

See Attached Annex 

(viii) Date Report Delivered to 

Congress: May 4, 2023 

*As defined in Section 47(6) of the 

Arms Export Control Act. 

POLICY JUSTIFICATION 

Australia—Surveillance Towed Array 

Sensor System Expeditionary 

(SURTASS–E) Mission Systems 

The Government of Australia has 

requested to buy Surveillance Towed 

Array Sensor System Expeditionary 

(SURTASS–E) mission systems for 

Vessels of Opportunity (VOO); a shore 

processing mission system, a spare 

SURTASS passive acoustic array; 

containers; communications parts and 

support equipment (Classified and 

Unclassified); software (Classified and 

Unclassified); publications (Classified 

and Unclassified); training; U.S. 

Government and contractor engineering 

support; and other related elements of 

logistics and program support. The 

estimated total cost is $207 million. 

This proposed sale will support the 

foreign policy and national security 

objectives of the United States. Australia 

is one of our most important allies in 

the Western Pacific. The strategic 

location of this political and economic 

power contributes significantly to 

ensuring peace and economic stability 

in the region. It is vital to the U.S. 

national interest to assist our ally in 

developing and maintaining a strong 

and ready self-defense capability. 

The proposed sale will improve 

Australia’s capability to meet current 

and future maritime threats by 

providing tactical platforms with the 

detection and cueing of enemy 

submarines. The ability to provide 

acoustic Wide Area Surveillance and 

generate Indications and Warnings to 

Australian Commands will significantly 

improve shared maritime security. 

Australia will have no difficulty 

absorbing this equipment into its armed 

forces. 

The proposed sale of this equipment 

and support will not alter the basic 

military balance in the region. 

The principal contractors will be 

Lockheed Martin-Syracuse, Syracuse, 

NY; and Lockheed Martin-Manassas, 

Manassas, VA. There are no known 

offset agreements proposed in 

connection with this potential sale. 

Implementation of this proposed sale 

will require U.S. Government personnel 

and U.S. Contractor representatives to 

visit the Commonwealth of Australia on 

a temporary basis in conjunction with 

program technical oversight and support 

requirements, including program and 

technical reviews. 

There will be no adverse impact on 

U.S. defense readiness as a result of this 

proposed sale. 

Transmittal No. 23–29 

Notice of Proposed Issuance of Letter of 

Offer Pursuant to Section 36(b)(1) of the 

Arms Export Control Act 

Annex 

Item No. vii 

(vii) Sensitivity of Technology: 

1. The Surveillance Towed Array 

Sensor System Expeditionary 

(SURTASS–E) mission system is a 

containerized variant of the passive 

SURTASS system providing long range 

detection and cueing for tactical 

weapons platforms against both diesel 

and nuclear-powered submarines. 

SURTASS–E allows the fleet to detect, 

classify, localize, track, and report 

emergent threats, thereby improving 

overall maritime security. 

2. The highest level of classification of 

defense articles, components, and 

services included in this potential sale 

is SECRET. 

3. If a technologically advanced 

adversary were to obtain knowledge of 

the specific hardware and software 

elements, the information could be used 

to develop countermeasures that might 

reduce mission system effectiveness or 

be used in the development of a system 

with similar or advanced capabilities. 

4. A determination has been made 

that Australia can provide substantially 

the same degree of protection for the 

sensitive technology being released as 

the U.S. Government. This sale is 

necessary in furtherance of the U.S. 

foreign policy and national security 

objectives outlined in the Policy 

Justification. 

5. All defense articles and services 

listed in this transmittal have been 

authorized for release and export to the 

Government of Australia. 

[FR Doc. 2024–22238 Filed 9–26–24; 8:45 am] 

BILLING CODE 6001–FR–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

Notice of Funding Availability— 

Covered Technology CategoriesEquipment Financing 

AGENCY: Office of Strategic Capital 

(OSC), Office of the Under Secretary of 

Defense for Research and Engineering, 

Department of Defense (DoD). 

ACTION: Notice of Funding Availability 

(NOFA). 

SUMMARY: The OSC is announcing the 

availability of up to $984,000,000 

aggregate funding for direct loans for 

equipment financing for technologies in 

the designated covered technology 

categories. 

DATES: Applications will be accepted 

per the terms set forth below. 

FOR FURTHER INFORMATION CONTACT: For 

questions about this notice, please 

contact David Vidal, Office of Strategic 

Capital Director of Credit Programs, at 

Federal.Register.Notice@osc.mil, tel. no. 

703–545–1903. Please direct media 

inquiries to the OSC Press Team at 

engagements@osc.mil. 

SUPPLEMENTARY INFORMATION: 

1. Notice of Funding Availability 

Overview 

• Federal Agency Name: Office of 

Strategic Capital, U.S. Department of 

Defense. 

• Federal Funding Opportunity Title: 

Office of Strategic Capital Notice of 

Funding Availability (Equipment 

Finance). 

• Announcement Type and Date: 

Initial announcement for the Office of 

Strategic Capital Notice of Funding 

Availability (Equipment Finance), as 

authorized by section 903 of the 

National Defense Authorization Act for 

Fiscal Year 2024. Effective date: 

September 27, 2024. 

• Purpose: This Notice of Funding 

Availability seeks applications for 

financing the construction, expansion, 

or modernization of commercial 

equipment in the United States. These 

commercial facilities and their products 

will support, either directly or 

indirectly, Covered Technology 

Categories as set out in 10 U.S.C. 149(e). 

The Office of Strategic Capital will 

provide direct loans in the amount of 

$10–$150 million under this Notice of 

Funding Availability. The eligibility and 

selection criteria for investments 

include compliance with statute, the 

extent to which an investment supports 

U.S. national security or economic 

interests, the impact that direct loans 

would have on the project or 

transaction, and the creditworthiness of 

the investment, among other factors 

OSC will evaluate in the application 

process. See section 5 for additional 

information on evaluation criteria. 

• Application Format and Timeline: 

This Notice of Funding Availability will 

employ a two-stage application process. 

The application process under this 


lotter on DSK11XQN23PROD with NOTICES1
79272 Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 

Notice of Funding Availability consists 

of an Application Part 1 to validate 

eligibility and project or transaction 

suitability. As further detailed below, 

Applicants with a successful Part 1 

submission will be invited to complete 

the full application. 

Æ Application Part 1. Part 1 of the 

application may be submitted starting 

on January 2, 2025 and must be received 

by 4:59 p.m. Eastern Time on February 

3, 2025. See section 7(B) for additional 

information on Application Part 1 

submission instructions. 

Æ Application Part 2. Following 

Application Part 1 review, the Office of 

Strategic Capital will invite certain 

applicants to complete Application Part 

2. See section 7(E) for additional 

information on Application Part 2 

submission instructions. 

Application Part 2 submissions will 

be considered on a rolling basis. The 

Office of Strategic Capital may amend, 

cancel, or withdraw the Notice of 

Funding Availability at any time. All 

changes will be communicated via 

Federal Register Notice and the OSC 

website at https://www.osc.mil. 

• Eligible Applicants: Pursuant to 

section 903 of the National Defense 

Authorization Act for Fiscal Year 2024: 

(1) an eligible applicant must be an 

Eligible Entity, (2) investments must be 

in a Covered Technology Category, and 

(3) investments must not be in a 

technology that solely has defense 

applications (each of Eligible Entity and 

Covered Technology Category, as 

defined in the National Defense 

Authorization Act for Fiscal Year 2024). 

Furthermore, eligible applicants will be 

assessed for creditworthiness, alignment 

with the mission of the Office of 

Strategic Capital, and compliance with 

certain provisions of the Federal Credit 

Reform Act of 1990. See section 3 of this 

Notice of Funding Availability for a full 

assessment of Eligibility. 

• Funding Opportunity Description: 

Direct loans made under this Notice of 

Funding Availability will seek to 

strengthen U.S. economic and national 

security by providing equipment 

finance loans for companies investing in 

Covered Technology Categories. 

Through this Notice of Funding 

Availability, the Office of Strategic 

Capital will issue approximately $10– 

$150 million in loans to approximately 

ten successful applicants, subject to the 

availability of funds as set out in section 

4(B)(I) below. Subsequent Notices of 

Funding Availability will offer 

additional forms of financial assistance 

for companies investing in Covered 

Technology Categories. 

2. Covered Technology Categories 

Per 10 U.S.C. 149(e), the Covered 

Technology Categories are: 

(A) Advanced bulk materials; 

(B) Advanced manufacturing; 

(C) Autonomous mobile robots; 

(D) Battery storage; 

(E) Biochemicals; 

(F) Bioenergetics; 

(G) Biomass; 

(H) Cybersecurity; 

(I) Data fabric; 

(J) Decision science; 

(K) Edge computing; 

(L) External communication; 

(M) Hydrogen generation and storage; 

(N) Mesh networks; 

(O) Microelectronics assembly, testing, or 

packaging; 

(P) Microelectronics design and 

development; 

(Q) Microelectronics fabrication; 

(R) Microelectronics manufacturing 

equipment; 

(S) Microelectronics materials; 

(T) Nanomaterials and metamaterials; 

(U) Open RAN; 

(V) Optical communications; 

(W) Sensor hardware; 

(X) Solar; 

(Y) Space launch; 

(Z) Spacecraft; 

(AA) Space-enabled services and 

equipment; 

(BB) Synthetic biology; 

(CC) Quantum computing; 

(DD) Quantum security; and 

(EE) Quantum sensing. 

3. Notice of Funding Availability 

Table of Contents 

1. Notice of Funding Availability Overview 

2. Covered Technology Categories 

3. Notice of Funding Availability Table of 

Contents 

4. Program Description 

A. Purpose of Program 

B. Program Objectives and Priorities 

C. Statutory Authority 

5. Federal Funding Information 

A. Funding Instrument—Type of Funding 

B. Funding Availability 

I. Fiscal Year Funds 

II. Funding Categories, Interest Rates, 

Terms and Conditions 

III. Direct Loan Amounts 

6. Eligibility Information 

A. Eligible Applicants 

B. Eligible Projects 

C. Section 8140 Eligibility Criteria 

D. Eligible Costs 

7. Application and Submission Information 

A. How To Access an Application 

B. How To Submit Application Part 1 

C. Pre-Application Consultation 

D. Application Part 1, Review and 

Selection 

I. Foreign Ownership, Control, or Influence 

and Adversarial Capital 

II. Evaluation Criteria 

E. How To Submit Application Part 2 

F. Part 2 Application Review 

G. System for Award Management and 

Unique Entity Identifier 

H. Submission Dates and Times 

I. Confidential Business Information 

J. Funding Restrictions 

K. Intergovernmental and Regulatory 

Review 

8. Federal Funding Administration 

Information 

A. Third-Party Expenses and Fees 

B. Funding Availability and Limitation of 

Liability 

C. Reporting 

D. Additional Information 

E. Privacy Advisory 

F. Office of Strategic Capital Contact 

Information 

4. Program Description 

This Notice of Funding Availability 

(‘‘NOFA’’) from the United States 

Department of Defense (‘‘DoD’’ or the 

‘‘Department’’) Office of Strategic 

Capital (‘‘OSC’’) seeks submission of 

Part 1 of the Application for Loan 

Financing (‘‘Application Part 1’’) from 

eligible applicants based on criteria set 

forth in subsequent portions of this 

document. Successful Application Part 

1 submissions may receive an invitation 

from OSC to submit an Application Part 

2. 

OSC has the authority to provide 

multiple forms of assistance, including 

direct loans, loan guarantees, and 

technical assistance that support 

commercial supply chains for 

technologies that are critical to U.S. 

national security. This inaugural NOFA 

specifically seeks applications for direct 

loans that will support modernization of 

manufacturing equipment in Covered 

Technology Categories. Applicants are 

not required to have any past, current, 

or future DoD or Federal Government 

contracts or provide sales or services to 

the Federal Government to be eligible. 

Subject to additional appropriations, 

OSC expects to publish opportunities in 

the future for additional CTCs and types 

of assistance, including loan guarantees. 

This NOFA provides detailed 

information about the program 

objectives and requirements applicants 

will need to meet to receive funding. It 

also describes the procedures the 

program will use to evaluate and select 

applications for funding. Application 

Part 1, OMB Control Number 0704– 

0694, is due no later than 4:59 p.m. 

Eastern Time on February 3, 2025. OSC 

will invite certain applicants to submit 

Part 2 of the application (OMB Control 

Number 0704–0694, ‘‘Application Part 

2’’) based on its evaluation of 

Application Part 1. OSC may provide 

further guidance on these requirements 

and procedures in subsequent 

publications and through a series of 

public outreach sessions, information 

about which will be available at OSC’s 

website: https://www.osc.mil. Interested 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 79273 

parties should routinely check the 

website for updates. 

OSC reserves the right to amend or 

modify any of the terms, procedures, or 

conditions set forth in this Notice of 

Funding Availability. 

A. Purpose of Program 

OSC’s mission is to attract and scale 

private capital to technologies critical to 

the national and economic security of 

the United States. The NDAA (as 

defined below) states OSC shall: 

• develop, integrate, and implement 

capital investment strategies proven in 

the commercial sector to shape and 

scale investment in critical technologies 

and assets; 

• identify and prioritize promising 

critical technologies and assets that 

require funding and have the potential 

to benefit DoD; and 

• make eligible investments in such 

technologies and assets, such as supply 

chain technologies not always 

supported through direct investment. 

The United States is in a global 

competition to be the world’s leader in 

emerging and critical technologies. 

These technologies are vital to creating 

enduring national security advantages 

for the U.S., its allies, and partners. 

Today, the private sector funds the 

majority of technological research and 

development, and, consequently, 

private capital is the driving resource 

that determines the United States’ 

research and development agenda. 

DoD will utilize financial tools 

available to OSC to attract and scale the 

private capital needed to commercialize 

and scale critical technologies that 

enhance the United States’ broader 

national security and economic 

interests. OSC is authorized to provide 

loans and loan guarantees to eligible 

projects in select covered technology 

categories. OSC aims to build on 

successful examples of administering 

efficient, cost-effective financial tools to 

advance national security priorities. By 

aligning government and private sector 

incentives around technologies vital to 

national security and economic 

interests, DoD aims to use the power of 

the market and economic competition to 

attract the capital required for critical 

technology investment. 

B. Program Objectives and Priorities 

OSC aims to support entities in 

expanding and modernizing their 

production capabilities while 

simultaneously encouraging private 

capital investment. A key goal in OSC’s 

efforts is to attract and scale private 

capital alongside public funds, rather 

than relying on public funding alone for 

investment in national and economic 

security priorities. For this inaugural 

NOFA, OSC’s objective is to provide 

direct loans to entities for equipment 

modernization, refurbishment, and 

expansion efforts in existing 

manufacturing facilities that support the 

CTCs. 

C. Statutory Authority 

This NOFA is issued pursuant to the 

National Defense Authorization Act for 

Fiscal Year 2024, Public Law 118–31, 

section 903 (the ‘‘NDAA’’), which 

authorized the Office of Strategic 

Capital. Under the NDAA, OSC is 

authorized to carry out a pilot program 

to provide direct loans to eligible 

entities for investments in technologies 

that fall within specified CTCs and have 

existing or forecasted commercial 

applications beyond solely defense 

purposes. The eligibility and selection 

criteria for investments include 

compliance with statute, the extent to 

which an investment supports U.S. 

national security or economic interests, 

the impact that direct loans would have 

on the project or transaction, and the 

creditworthiness of the investment, 

among other factors OSC will evaluate 

in the application process. 

5. Federal Funding Information 

A. Funding Instrument—Type of 

Funding 

To accomplish program objectives 

described in section 3(a) and section 

3(b) above, OSC will provide direct 

loans to eligible applicants. Additional 

financial products will be available in 

future NOFAs. 

B. Funding Availability 

I. Fiscal Year Funds 

The Further Consolidated 

Appropriations Act, 2024 (Pub. L. 118– 

47) (the ‘‘Appropriations Act’’) included 

appropriations to support up to 

$984,000,000 in direct loans, available 

for obligation through September 26, 

2026. Total amount of funding for direct 

loans under this NOFA may include 

future appropriations. Amounts funded 

under this NOFA will depend on the 

creditworthiness of applications 

received and program priorities. 

Remaining funding, if any, will be used 

for future funding opportunities. 

OSC reserves the right to issue funds 

up to the amounts appropriated under 

fiscal year 2024 under this NOFA. 

Additionally, OSC retains the discretion 

to apply funds from future 

appropriations to loans issued under 

this NOFA. OSC will determine the total 

level of funding to be issued based on 

current and future appropriations. 

II. Funding Categories, Interest Rates, 

Terms and Conditions 

Based on statutory authority provided 

in section 903(b)(3)(A) of the NDAA, 

OSC has established requirements for 

terms and conditions for direct loans 

under this NOFA. Specific terms will be 

developed for each transaction, but this 

section describes guiding principles for 

certain terms. 

Interest Rate 

The interest rate on direct loans 

provided under this program shall be set 

depending upon factors specific to the 

transaction and market factors at the 

time of approval, including prevailing 

market interest rates and the credit risk 

of the transaction, but in no event at a 

rate less than the yield on marketable 

United States Department of the 

Treasury securities of a similar maturity. 

Maturity Date 

The maturity date for direct loans 

under this program shall be determined 

depending upon factors specific to the 

transaction at the time of approval, 

including the credit risk of the 

transaction, use of loan proceeds, useful 

life of the underlying assets, and 

collateral. 

Prepayment 

Direct loans provided under this 

program may be prepaid without 

penalty. 

Non-Subordination 

OSC loans are senior loans and shall 

not be subordinated to any other 

indebtedness, subject to certain 

exceptions. The form of acceptable 

security will be determined based on 

factors specific to transactions and can 

include a lien on pledged collateral, or 

other form of security acceptable to OSC 

in its sole discretion. In some cases, 

pursuant to the NDAA, OSC may make 

an unsecured corporate loan. 

Other Terms and Conditions 

OSC reserves the right to determine 

terms on a transaction-by-transaction 

basis under this program. Transactions 

may be subject to such other terms, 

conditions, covenants, representations, 

warranties, and requirements as OSC 

deems appropriate. 

III.Direct Loan Amounts 

The total amount of direct loan 

financing provided under this NOFA 

will vary by project or transaction and 

applicants will be required to specify 

their financing needs in their 

Application Part 1. For this NOFA, a 

project or transaction is defined as the 

comprehensive effort encompassing the 


lotter on DSK11XQN23PROD with NOTICES1
79274 Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 

purchase, refurbishment, installation, 

maintenance, and/or related activities 

associated with the use of equipment for 

manufacturing purposes. Direct loan 

financing will be individually 

negotiated and obligated based on 

considerations specific to each project, 

as well as the availability of program 

funds. 

Under this NOFA, OSC will accept 

loan applications for loan amounts of no 

less than $10 million and not exceeding 

$150 million. The NDAA section 903(d) 

requires not less than 80% of the total 

capital invested in a CTC-focused 

industry come from non-Federal sources 

at the time of OSC investment. While 

OSC will monitor compliance with this 

requirement, OSC generally does not 

expect this requirement to restrict 

investment into individual projects. 

6. Eligibility Information 

The eligibility information below 

applies to this inaugural NOFA. OSC 

may revise the scope of eligible projects 

for future funding opportunities. 

A. Eligible Applicants 

The following entities (including 

relationships by and among entities, 

e.g., joint ventures or strategic alliances) 

are eligible to apply for direct loans 

from OSC: 

• an individual; 

• a corporation; 

• a partnership, which may include a 

public-private partnership, limited 

partnership, or general partnership; 

• a trust; 

• a State, including a political 

subdivision or any other instrumentality 

of a State; 

• a Tribal government or consortium 

of Tribal governments; 

• any other governmental entity or 

public agency in the United States, 

including a special purpose district or 

public authority, including a port 

authority, or 

• a multi-State or multi-jurisdictional 

group of public entities. 

To ensure the effective allocation of 

direct loans, OSC will require that 

borrowing entities (or sponsors) 

demonstrate a minimum of three years 

of operating history. OSC reserves the 

right to waive or increase this 

requirement in its sole discretion if the 

application demonstrates exceptional 

alignment with NOFA objectives and 

requirements. 

B. Eligible Projects 

Eligible projects or transactions under 

this NOFA must align with authorizing 

language provided in the NDAA, which 

requires that all eligible investments 

made: 

• are in a CTC, and 

• are not a technology that solely has 

defense applications. 

For this inaugural NOFA, OSC aims to 

fund the procurement or rehabilitation 

of equipment for manufacturing 

processes in the CTCs. 

C. Section 8140 Eligibility Criteria 

OSC will evaluate project applications 

for existing Federal involvement. The 

Section 8140 Eligibility Criteria were 

developed pursuant to section 8140 of 

the Appropriations Act. The third 

proviso of section 8140 requires the 

Secretary of Defense and the Director of 

the Office of Management and Budget 

(‘‘OMB’’) to jointly develop criteria for 

‘‘eligibility for direct loans and loan 

guarantees that limit Federal 

participation in a project consistent 

with the requirements for the budgetary 

treatment provided for in section 504 of 

the Federal Credit Reform Act of 1990 

(‘‘FCRA’’; 2 U.S.C. 661c) and based on 

the recommendations contained in the 

1967 Report of the President’s 

Commission on Budget Concepts. All 

applicants submitting applications for 

funding under this NOFA must 

complete responses for the Section 8140 

Eligibility Criteria. OSC and OMB will 

perform a holistic review of the 

responses to the Section 8140 Eligibility 

Criteria responses and determine 

whether the application meets the 

criteria. 

Federal Eligibility Threshold Questions 

1. Is the prospective borrower seeking 

financing for a project or transaction to 

produce a technology, product, asset, 

and/or service for which the Federal 

Government is the sole user? 

2. Is the prospective borrower seeking 

financing for a project or transaction to 

produce a technology, product, asset, 

and/or service where repayment is 

majority dependent on current or 

anticipated Federal sources (e.g., grants 

or contracts)? 

Federal Transaction Screening Criteria 

1. Is the borrower a public-private 

partnership, or does the Federal 

Government otherwise have a role in the 

governance of the activity financed by 

the proposed transaction (e.g., a 

corporate officer position, membership 

on the Board of Directors, the ability to 

unilaterally elect or veto members of the 

Board of Directors, or other forms of 

control or influence reserved for a 

stockholder), excepting any terms and 

conditions contained in the Credit 

Agreement or ancillary documents? 

2. Is the proposed transaction 

financing an activity for which a Federal 

agency has received previous 

authorization in legislation, and without 

which authorization a private sector 

entity would not engage in the activity? 

3. In the absence of an OSC loan, is 

the project economically viable (e.g., is 

the OSC loan critical to securing 

favorable ratings opinions or catalyzing 

private investments)? If yes, please 

explain how the proposed transaction 

fits within the assessed current private 

market. 

4. Does the transaction depend on the 

Federal Government making other inkind contributions (land, real estate, 

right-of-way, etc.)? If yes, please 

explain. 

5. What, if any, current Federal 

capital assets (e.g., Federal land, 

structures, equipment, or intellectual 

property) will be affected by the 

transaction? For example, will the 

transaction finance construction of an 

asset on Federal land, or does the 

transaction rely on the Federal 

Government’s continued ownership and 

maintenance of a structure for viability? 

6. To your knowledge, excepting an 

event of default, would the Federal 

Government be required to cover 

financial losses associated with the 

project? 

In the Application Part 1, if the 

applicant answers ‘‘yes’’ to any of the 

Federal Transaction Screening Criteria, 

the applicant will be invited to 

supplement the answer to provide 

further detail. 

D. Eligible Costs 

Direct loans made for eligible projects 

through OSC may be used to finance the 

purchase or rehabilitation of equipment, 

as well as the following costs directly 

associated with the financed equipment: 

• Pre-installation costs, such as 

planning, development, engineering 

analysis, financing, legal expenses, and 

associated fees (excepting application 

costs, which shall not be covered); 

• Ancillary costs, such as preparation 

of facility, permitting, utility upgrades, 

delivery, calibration, first-article testing 

and/or qualification, integration with 

existing systems, as well as associated 

modifications or software necessary for 

operational use; 

• Installation costs, including cost of 

labor and materials required for 

installation; 

• Appraisal and inspection costs, 

appraisals required to determine value 

of asset, or appraisal or inspections 

required by law and industry 

regulations; and 

• Refinancing costs, on a case-by-case 

basis. 

For any equipment that is purchased 

prior to submission of the Application 

Part 1, any of the above costs that have 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 79275 

been incurred during the useful life of 

an underlying asset may be included, at 

the sole discretion of OSC. 

7. Application and Submission 

Information 

This section 7 describes the 

application completion and submission 

process. First, potential applicants will 

submit Application Part 1 complete 

with descriptive information about the 

equipment purchase or rehabilitation 

and the potential borrower. Next, 

Application Part 1 will be reviewed 

using the criteria described in subsection D below. Finally, applicants 

who meet these criteria will then be 

invited to apply and submit Application 

Part 2. 

A. How To Access an Application 

Application Part 1, Application Part 

2, FAQs, and other materials are 

available at https://www.osc.mil. 

B. How To Submit Application Part 1 

a. All instructions required for 

submitting Part 1 are located on the OSC 

web page, https://www.osc.mil. 

b. Applicants can submit only one 

application. 

c. A parent company that has 

subsidiaries applying for funding based 

on the parent’s audited financials can 

only be the proposed guarantor for one 

application for funding under this 

notice. If multiple subsidiaries apply 

based on the same parent audited 

financial statement, only one 

application for one subsidiary can be 

funded, chosen at OSC’s discretion. 

d. Applications and supporting 

documents will not be accepted through 

mail or courier delivery, in-person 

delivery, or fax. 

C. Pre-Application Consultation 

Subject to OSC availability, 

Applicants can request pre-application 

consultation sessions with OSC prior to 

completion of Application Part 1. This 

optional pre-application consultation 

can be useful for feedback in 

anticipation of review of materials. 

Topics of discussion may include but 

are not limited to: OSC’s economic and 

national security goals; the scope of the 

OSC mission; the application process; 

CTCs; long-term investment plans for 

capital expenditures, as well as 

standard, market-oriented terms and 

conditions for loans. No findings from a 

pre-application consultation shall be 

used to evaluate an Application Part 1 

or Application Part 2 and OSC shall 

make no binding agreements whatsoever 

with applicants during a pre-application 

consultation. 

D. Application Part 1, Review and 

Selection 

Application Part 1 submissions must 

be received by 4:59 p.m. Eastern Time 

on February 3, 2025. Application Part 1 

submissions received after this date 

shall not be considered or reviewed. For 

all Application Part 1 submissions, OSC 

and OMB will assess whether the 

proposed project meets minimum 

eligibility requirements described in 

this NOFA as well as the loan proposal 

and supporting project information. 

OSC reserves the right to reopen this 

NOFA for the purpose of additional 

submissions of new or amended 

applications or to offer additional 

notices of funding availability. 

I. Foreign Ownership, Control, or 

Influence and Adversarial Capital 

During both the Application Part 1 

and Application Part 2 evaluation, OSC 

will assess the degree to which the 

applicant (including the borrower, 

sponsor, or guarantor, as applicable) or 

the project or transaction is subject to 

Foreign Influence and Adversarial 

Capital (each as defined below). The 

scope of the assessment will include the 

entity’s customers, suppliers, 

management team, board of directors or 

equivalent governing body, the entity’s 

ownership, as well as other contractual 

relationships. 

For the purposes of this NOFA these 

terms can be clarified as described 

below: 

Foreign Influence is a condition that 

exists when a Foreign Country of 

Concern (as defined below) or a Foreign 

Entity of Concern (as defined below) has 

the power, direct or indirect, whether or 

not exercised, (A) to direct or decide 

matters affecting the management or 

operations of the company or (B) to 

access material non-public information, 

or (C) to access material intellectual 

property of the company. Adversarial 

Capital is an investment in an entity, in 

the form of ownership or credit, from 

persons, whether legal or individual, in 

Foreign Countries of Concern or from 

Foreign Entities of Concern hostile to 

the interests of the United States, its 

allies, or partners. For the purposes of 

this NOFA, a Foreign Country of 

Concern is as set out in 15 U.S.C. 

4651(7) and a Foreign Entity of Concern 

is as set out in 15 U.S.C. 4651(8) and 15 

CFR 231.104(c). 

In connection with any concerns 

about Foreign Influence or Adversarial 

Capital, OSC reserves the right to 

employ mitigation agreements or other 

measures during the application 

process, including not approving a loan 

application. 

II. Evaluation Criteria 

OSC will review eligible Application 

Part 1 submissions and prioritize them 

by selection criteria, which include 

readiness to proceed and alignment 

with OSC’s mission. Following review, 

OSC will invite applicants to submit 

Application Part 2. At that time, OSC 

will furnish an application number for 

employment throughout the remainder 

of the application process. 

Application Part 1 will be assessed 

and prioritized on factors that include, 

but are not limited to, the following: 

a. Economic and National Security 

Objectives 

OSC is guided by the OSC mission 

statement: to attract private capital to 

national security priorities and scale 

private investment into critical 

technologies. Successful applicants will 

have a demonstrated investment in one 

or more CTCs, either through previous 

actions or a comprehensive business 

plan. 

b. Adherence to OSC Statutory 

Requirements 

Applicants that align with covered 

technologies eligible for investment and 

are not solely for defense applications, 

as outlined in the NDAA will be eligible 

for consideration. 

c. Alignment With OSC Funding 

Objectives 

Applicants that align with CTCs for 

equipment modernization efforts in 

existing manufacturing facilities will be 

prioritized under this NOFA. 

d. Speed to Commercialization 

Applicants for projects or transactions 

for which a technology or product can 

be quickly brought to market and made 

commercially available will be 

prioritized in the evaluation process. 

e. Readiness To Proceed 

Applicants in a position to execute on 

the purchase of equipment will be 

prioritized in the evaluation process. 

f. Availability of Government Financial 

Support 

The extent to which the project or 

transaction uses available funding (i.e., 

appropriated funds from Congress), 

allowing OSC to fund a diverse portfolio 

of investments for the initial funding 

round. 

g. Creditworthiness 

OSC will review applicants for a 

demonstrated history of reliable credit 

repayment. OSC will not issue a loan 

unless it determines that the applicant 

has a reasonable prospect of repaying 


lotter on DSK11XQN23PROD with NOTICES1
79276 Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 

the principal and interest on the loan in 

a timely manner and that the principal, 

when combined with amounts available 

to the applicant from other sources, will 

be sufficient to carry out the purchase 

or refurbishment, installation, and use 

of the equipment. 

h. Technical Assessment 

Projects or transactions may be 

prioritized based on a technical 

assessment associated with the subject 

application. 

i. Anticipated Results or Benefits of 

Resulting Capability 

Projects or transactions may be 

prioritized, at the discretion of OSC, 

based on the prospective benefits or 

results of the subject application. 

j. Current Associated Financing for Past 

Purchases (as Applicable) 

In the case of equipment purchased 

prior to submission of the application, 

OSC may prioritize projects or 

transactions associated with current 

financing or obligations to maximize the 

benefit of the subject offering. 

k. Other Factors (as Applicable) 

Projects or transactions may be 

prioritized on other factors relevant to 

OSC, the applicant, or the subject 

application as appropriate. 

l. Timeline 

Following review, at any time 

following the submission of Application 

Part 1, the OSC project development 

team may notify applicants of their 

status and invite them to submit 

Application Part 2. 

E. How To Submit Application Part 2 

a. OSC will invite applicants to 

complete Application Part 2. 

Unsolicited Application Part 2 

submissions will not be reviewed. OSC 

will employ the contact and notice 

information listed in Application Part 1 

to send its invitation. 

b. All materials and instructions for 

completing an application are located 

on the OSC web page, https://

www.osc.mil. Please note there are 

several supporting studies and 

documents that will need to be 

submitted along with Application Part 

2. 

c. Applicants can submit only one 

application. 

d. A parent company that has 

subsidiaries applying for funding based 

on the parent’s audited financials can 

only be the proposed guarantor for one 

application for funding under this 

notice. If multiple subsidiaries apply 

based on the same parent audited 

financial statement, only one 

application can be funded, chosen at 

OSC’s discretion based on the factors in 

section 6(D)(ii) above. 

e. Applications and supporting 

documents will not be accepted through 

mail or courier delivery, in-person 

delivery, or fax. 

F. Part 2 Application Review 

Following receipt of a complete 

Application Part 2, the proposed project 

will undergo environmental, credit, 

legal, and technical due diligence on the 

proposed project or transaction, 

including compliance with relevant 

Bank Secrecy Act requirements. This 

review will inform a final determination 

on whether to make commit to a project 

and on what terms. OSC may request 

the applicant to retain outside 

consulting services to assess relevant 

aspects of the project. Those costs may 

be included in the project costs listed in 

the financial plan and may be the 

responsibility of the applicant, as 

determined by OSC. In some cases, OSC 

may request additional information to 

ensure the best financing options for an 

applicant’s needs. 

OSC will conduct the business, 

technical, and legal review during the 

due diligence phase to evaluate the 

financial and legal soundness of the 

proposed project or transaction. The 

areas that the origination team evaluates 

include the following: 

• Proposed Capitalization Structure; 

• Financial History of Key 

Participants—Borrower(s), Guarantor(s), 

Contractors(s); 

• Financial Condition of Key 

Participants; 

• Terms and Conditions of Project 

Contracts; 

• Target Market and Marketing 

Strategy; 

• Proposed Project Management 

Team and Operating Plan; 

• Financial Projections of the Project; 

• Historical Financial Performance; 

• Legal, Regulatory, and Tax Issues; 

• Bank and Trade References; and 

• Character Risk Due Diligence. 

Following due diligence, the 

application materials and findings will 

undergo an approval process within 

OSC. OMB will evaluate the final 

subsidy cost of the direct loan. 

Following OSC and OMB approval 

processes, OSC may share a final term 

sheet and conditional letter of 

commitment with the applicant. At this 

stage, OSC may seek the applicant’s 

approval for employment of consultants 

or advisors to perform any confirmatory 

due diligence items which may include, 

but are not limited to, independent 

engineering assessment, appraisals, and 

insurance evaluations. 

G. System for Award Management and 

Unique Entity Identifier 

Applicants should make efforts to 

complete the process of registering for 

the System for Award Management 

(SAM.gov), including obtaining a 

Unique Entity Identifier, prior to 

submitting a full application. 

Applicants are strongly encouraged to 

begin the process of registering for 

SAM.gov as early as possible. While this 

process ordinarily takes between three 

days and two weeks, in some 

circumstances it can take six or more 

months to complete due to information 

verification requirements. The 

Department is unable to issue the OSC 

loan to an entity that lacks an active 

SAM.gov registration. Throughout the 

term of the OSC loan, applicant will be 

required to maintain its SAM.gov 

registration in good standing. 

In considering applications, OSC will 

assess the record of the applicant, as 

well as of its corporate parent, in 

executing programs or activities under 

Federal grants, cooperative agreements, 

procurement awards, and other 

transactions, as well as its integrity and 

business ethics. As part of this 

consideration, OSC will review and 

consider the non-publicly available 

information about that applicant in the 

designated integrity and performance 

system accessible through 

Responsibility/Qualification Records on 

SAM.gov. This review may also include 

the applicant’s corporate parent or 

affiliates that are under common 

ownership and control. Each applicant, 

at its option, may review information in 

the designated integrity and 

performance system accessible through 

SAM and comment on any information 

about itself that a Federal awarding 

agency previously entered and is 

currently in the designated integrity and 

performance system accessible through 

SAM. OSC will consider any comments 

by the applicant, in addition to the other 

information in the designated integrity 

and performance system, in making a 

judgment about the applicant’s integrity, 

business ethics, and record of 

performance under Federal awards. 

H. Submission Dates and Times 

• Beginning on January 2, 2025, 

Application Part 1 will be accepted 

until 4:59 p.m. Eastern Time on 

February 3, 2025. 

• Application Part 2 will be accepted 

on a rolling basis following OSC’s 

invitation to complete an Application 

Part 2. The invitation to complete an 

Application Part 2 will include a 

submission deadline. 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 79277 

• OSC will not solicit or consider 

new scoring or eligibility information 

that is submitted after the application 

deadline. However, OSC reserves the 

right to ask applicants for clarifying 

information and additional verification 

of assertions in the Application Part 1 

and Application Part 2. 

I. Confidential Business Information 

OSC recognizes the importance of 

protecting proprietary or otherwise 

confidential business information. OSC 

and the Department will follow 

applicable laws, including, for example, 

the Trade Secrets Act, and the Freedom 

of Information Act (‘‘FOIA’’), as well as 

the DoD Controlled Unclassified 

Information (‘‘CUI’’) policy to protect 

such information. 

All Federal employees are bound by 

the Trade Secrets Act, which makes 

Federal employees criminally liable for 

the unauthorized disclosure of 

‘‘information [that] concerns or relates 

to the trade secrets, processes, 

operations, style of work, or apparatus, 

or to the identity, confidential statistical 

data, amount or source of any income, 

profits, losses, or expenditures of any 

person, firm, partnership, corporation, 

or association’’. Violations of the Trade 

Secrets Act may result in the loss of 

employment, fines, or imprisonment. 

OSC will also ensure any contractors or 

consultants working in support of OSC 

uphold relevant standards for protecting 

the Confidential Business Information of 

any applicant. 

Exemption 4 of FOIA protects trade 

secrets and commercial or financial 

information obtained from a person that 

is privileged or confidential. This 

exemption is designed to protect the 

interests of both the government and 

private parties doing business with the 

government by exempting the disclosure 

of information that is customarily kept 

confidential by the company providing 

the information. The Department will 

apply this exemption to FOIA requests 

in accordance with the law and the 

Department’s FOIA regulations. 

CUI policy outlines the handling, 

dissemination, and protection of 

information that requires safeguarding 

or dissemination controls pursuant to 

and consistent with law, regulations, 

and government-wide policies. CUI 

policy encompasses a wide range of 

information categories including 

proprietary business information, 

defined as material and information 

relating to, or associated with, a 

company’s products, business, or 

activities, including but not limited to 

financial information; data or 

statements; trade secrets; product 

research and development; existing and 

future product designs and performance 

specifications. The policy mandates 

proper marking, handling, and 

dissemination practices to prevent 

unauthorized access and ensure the 

protection of sensitive information, 

thereby enhancing operational security 

and reducing the potential damage 

associated with data breaches. 

Instructions for the identification and 

marking of information or documents 

that the applicant treats as confidential 

are in included in Application Part 1 

and on the OSC website at https://

www.osc.mil. Any requests for 

information covered by a confidentiality 

claim will be disclosed by OSC in 

accordance with the procedures set 

forth under 32 CFR Subchapter N, or as 

otherwise required by law or order of 

court with appropriate jurisdiction. 

J. Funding Restrictions 

In the case of an eligible investment 

made through a direct loan, OSC 

requires not less than 80% of the total 

capital invested in a CTC-focused 

industry come from non-Federal sources 

at the time of OSC investment. OSC will 

evaluate applications against this 

requirement by sector and covered 

technologies. OSC will monitor this 

requirement but based on OSC’s market 

research to date, OSC generally does not 

expect this requirement to restrict 

investment into individual projects 

under this NOFA. 

Funds made available under this 

NOFA may only be put to eligible uses. 

In addition, funds made available 

through this NOFA may not be used for 

any purpose that would violate the 

following laws and regulations: 

• Foreign Corrupt Practices Act and 

Domestic Anti-Bribery Laws: Prohibited 

uses include making payments to 

foreign or domestic government officials 

to assist in obtaining or retaining 

business, and willfully using mails or 

any means of interstate commerce 

corruptly to offer, pay, promise to pay, 

or authorize the payment of money or 

anything of value, directly or indirectly, 

to a foreign or domestic government 

official to influence the official in their 

official capacity, induce the official to 

do or omit to do an act in violation of 

their lawful duty, or to secure any 

improper advantage to assist in 

obtaining or retaining business for or 

with, or directing business to, any 

person. 

• Anti-Lobbying Laws: Prohibited 

uses include using money appropriated 

by any enactment of Congress, in the 

absences of express authorization by 

Congress, to directly or indirectly 

influence or attempt to influence any 

official or employee of a government 

agency, or any official, employee or 

member of Congress, in connection with 

a government loan or contract. 

• Anti-Boycott: Prohibited uses 

include participation in foreign boycotts 

not sanctioned by the United States. 

• Foreign Entities of Concern: 

Prohibited uses include purchases or 

other commercial or advisory 

relationships with Foreign Entities of 

Concern. 

Additionally, OSC funds may not be 

used for any illegal or other prohibited 

purpose. 

K. Intergovernmental and Regulatory 

Review 

Under this NOFA, financing for 

equipment modernization and 

expansion may constitute a major 

Federal action and cross-cutting 

regulations may apply. Accordingly, 

receiving financial credit support may— 

in certain circumstances—require 

borrowers to comply with a variety of 

Federal environmental, labor, 

transportation, and equipment sourcing 

requirements. 

In certain circumstances, and based 

on potential borrowers’ responses to 

Application Part 1, applicants may be 

required to provide a description of 

whether and how they intend to utilize 

domestically produced iron, steel, and 

construction materials as part of their 

projects, including for non-Federal 

entities how they plan to meet any 

applicable legal requirements pursuant 

to the Build America, Buy America Act. 

Applicants may also be required to 

comply with Davis-Bacon and its related 

acts (40 U.S.C. 3141 et seq.). 

In addition, applicants may be 

required to provide environmental 

studies necessary to verify compliance 

with the National Environmental Policy 

Act (42 U.S.C. 4321 et seq.), and other 

applicable Federal environmental laws 

and authorities such the National 

Historic Preservation Act, Endangered 

Species Act, Clean Water Act, and 

related Executive Orders. OSC expects 

applicants to design their projects so 

that they avoid, minimize, and mitigate 

the potential for significant 

environmental effects. 

The applicant will also be responsible 

for obtaining and complying with 

applicable Federal, State, and local 

permits such as those required under 

the Clean Water Act, Clean Air Act, and 

Resource Conservation and Recovery 

Act. OSC expects that each applicant 

invited to submit an Application Part 2 

will be prepared to submit required 

environmental studies as outlined in the 

application requirements. OSC 

encourages applicants to begin 

preparing for the environmental review 


lotter on DSK11XQN23PROD with NOTICES1
79278 Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 

process as early as possible so that the 

applicant can demonstrate its readiness 

to commence the project(s). Applicants 

should therefore prepare for the 

environmental review, including 

gathering data and analysis, engaging 

experts or outside contractors, etc., as 

early as possible. Such actions will 

facilitate an expeditious environmental 

review process if invited to submit 

Application Part 2. 

In connection with any loans issued 

by OSC and depending on the nature of 

the project or transaction, borrowers 

may be required to adhere to additional 

regulations. OSC and potential 

borrowers (or sponsors) will determine 

which regulations shall apply during 

the development of legal 

documentation. 

8. Federal Funding Administration 

Information 

A. Third-Party Expenses and Fees 

OSC may utilize independent 

technical, financial, environmental, 

insurance, or other consultants and 

contractors and outside legal counsel 

during the due diligence process. 

Subject to the express agreement of the 

applicant, the applicant shall be 

responsible for the payment of all 

expenses charged by the independent 

consultants or contractors and OSC 

outside legal counsel in connection with 

an application. In such case, OSC shall 

not be responsible for expenses incurred 

if an application is denied. 

B. Funding Availability and Limitation 

of Liability 

Funding for the program is contingent 

upon the availability of appropriations. 

In no event will OSC be responsible for 

application preparation costs. Neither 

publication of this NOFA nor invitation 

to complete an Application Part 2 will 

oblige OSC to fund any specific project 

or transaction or to obligate available 

funds. This NOFA also is not intended 

to and does not create any rights 

enforceable by any alleged third-party 

beneficiaries. 

OSC is not under any obligation to 

provide additional future funding in 

connection with funding made under 

this NOFA. 

C. Reporting 

OSC understands the importance of 

undertaking systemic data collection 

and rigorous evaluative activities to 

assess the outcomes related to funds 

given under this NOFA. OSC is 

committed to this goal, and all 

applicants should expect this will be a 

requirement of funding. 

All funding recipients will be 

expected to comply with all reporting 

requirements, as well as program 

evaluation activities undertaken by 

OSC, in a format acceptable to OSC. 

OSC may publish generalized 

information through the review, 

selection, and loan issuance process. 

OSC may inform and, to the extent 

required by law, seek consent from 

applicants of any such disclosures. In 

addition, as will be set forth in the terms 

and conditions of each loan, successful 

applicants will be expected to support 

program and project reviews, audits, 

and program evaluation activities, 

including by submitting required 

financial and performance information 

and other relevant data in an accurate 

and timely manner, making available 

documents and other records related to 

the project upon request, and by 

cooperating with OSC and external 

program evaluators, including the Office 

of the Inspector General. Certain postloan issuance progress reporting may 

also be made public. 

OSC may also publish aggregated 

information from Application Part 1 and 

Application Part 2. 

D. Additional Information 

Any decision by OSC to reject an 

Application Part 1 as ineligible, or to 

deny an Application Part 2, shall be 

final and non-appealable. Unsuccessful 

applicants will be notified of a denial by 

email and will have the opportunity to 

receive a debriefing. Unsuccessful 

applications will be retained in 

accordance with Department of Defense 

recordkeeping requirements. 

E. Privacy Advisory 

a. Authority: The information 

requested by Application Part 1 and Part 

2 is authorized by the NDAA. 

b. Purpose: The information requested 

by Application Part 1 and Part 2 will be 

used to determine whether the loan 

transaction presents a reasonable 

assurance of repayment, meets the 

eligibility requirements set forth in 

NDAA section 903 and section 8140 of 

the Further Consolidated 

Appropriations Act, 2024, and supports 

the mission of OSC to attract and scale 

private investment for national and 

economic security. The information 

collected will also be used for ‘‘know 

your customer’’ purposes to assure that 

transaction parties do not have 

ownership, control, or influence from or 

by foreign parties adverse to the United 

States. 

c. Uses: While the information 

requested by the Application Part 1 and 

Part 2 is primarily intended to be used 

internally at OSC, in certain 

circumstances it may be necessary to 

disclose this information externally, 

including to contractors, experts, 

consultants, and others performing or 

working on a contract, service, or other 

assignment for the Federal Government, 

when necessary to accomplish an 

agency function. 

d. Disclosure: Provision of the 

information requested by the 

Application Part 1 and Part 2 is 

voluntary. However, failure to provide 

the requested information may result in 

OSC being unable to determine 

eligibility under this Notice of Funding 

Availability and rejection of an 

Application Part 1 or Part 2. At all 

times, OSC reserves the right to decline 

to process or to discontinue processing 

any application. 

e. OMB Control Number: Unless a 

currently valid OMB control number is 

displayed on Application Part 1 and 

Application Part 2, OSC may not ask 

applicants to submit, and applicants are 

not required to provide, the requested 

information. 

F. Office of Strategic Capital Contact 

Information 

For general inquiries regarding the 

NOFA, please contact: Office of 

Strategic Capital, Department of 

Defense, Phone: (703) 545–1903, Email: 

OSC.Loan.Application@osc.mil. 

DoD is an equal opportunity provider, 

employer, and lender. 

Dated: September 24, 2024. 

Aaron T. Siegel, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense. 

[FR Doc. 2024–22229 Filed 9–26–24; 8:45 am] 

BILLING CODE 6001–FR–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Transmittal No. 23–39] 

Arms Sales Notification 

AGENCY: Defense Security Cooperation 

Agency, Department of Defense (DoD). 

ACTION: Arms sales notice. 

SUMMARY: The DoD is publishing the 

unclassified text of an arms sales 

notification. 

FOR FURTHER INFORMATION CONTACT: 

Pamela Young at (703) 953–6092, 

pamela.a.young14.civ@mail.mil, or 

dsca.ncr.rsrcmgmt.list.cns-mbx@

mail.mil. 

SUPPLEMENTARY INFORMATION: This 

36(b)(1) arms sales notification is 

published to fulfill the requirements of 

section 155 of Public Law 104–164 

dated July 21, 1996. The following is a 

copy of a letter to the Speaker of the 


lotter on DSK11XQN23PROD with NOTICES1