Notice2024-16179
Information Request on Financing Support for Covered Technology Categories-Specific to Companies and Trade Associations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 24, 2024
Issuing agencies
Defense Department
Abstract
The OSC is seeking information from companies and trade associations regarding strategic capital needs for industries related to the Covered Technology Categories to inform the design and implementation of the DoD Loan Program.
Full Text
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<title>Federal Register, Volume 89 Issue 142 (Wednesday, July 24, 2024)</title>
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[Federal Register Volume 89, Number 142 (Wednesday, July 24, 2024)]
[Notices]
[Pages 59904-59907]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-16179]
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DEPARTMENT OF DEFENSE
Office of the Secretary
[Docket ID: DoD-2024-OS-0073]
Information Request on Financing Support for Covered Technology
Categories--Specific to Companies and Trade Associations
AGENCY: Office of Strategic Capital (OSC), Office of the Under
Secretary of Defense for Research and Engineering, Department of
Defense (DoD).
ACTION: Notice; request for information (RFI).
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SUMMARY: The OSC is seeking information from companies and trade
associations regarding strategic capital needs for industries related
to the Covered Technology Categories to inform the design and
implementation of the DoD Loan Program.
DATES: Comments must be received by October 22, 2024. Written comments
in response to this RFI should be submitted in accordance with the
instructions in the ADDRESSES and SUPPLEMENTARY INFORMATION sections of
this notice.
ADDRESSES: Interested parties may submit comments on this transaction
electronically on <a href="http://www.regulations.gov">www.regulations.gov</a>. To submit a comment, enter
``Information Request on Financing Support for Covered Technology
Categories--Specific to Companies and Trade Associations'' under the
heading ``Enter Keyword or ID'' and select Search. You can also search
by the Docket ID, DoD-2024-OS-0073. Follow the instructions provided at
the `Submit a Comment screen'.
Comments can also be sent by mail to Department of Defense, Office
of the Assistant to the Secretary of Defense for Privacy, Civil
Liberties, and Transparency, 4800 Mark Center Drive, Mailbox #24, Suite
08D09, Alexandria, VA 22350-1700.
Please include your name, company name (if any) and ``Information
Request on Financing Support for Covered Technology Categories'' on any
attached document.
Comments sent by any other method, to any other address or
individual, or received after the end of the comment period, may not be
considered.
FOR FURTHER INFORMATION CONTACT: For questions about this notice,
please contact David Vidal, Office of Strategic Capital Director of
Credit Programs, at <a href="/cdn-cgi/l/email-protection#703615141502111c5e22151719030415025e3e1f04191315301f03135e1d191c"><span class="__cf_email__" data-cfemail="d791b2b3b2a5b6bbf985b2b0bea4a3b2a5f999b8a3beb4b297b8a4b4f9babebb">[email protected]</span></a>, Tel. No. 703-545-
1903. Please direct media inquiries to the OSC Press Team at
<a href="/cdn-cgi/l/email-protection#b2d7dcd5d3d5d7dfd7dcc6c1f2ddc1d19cdfdbde"><span class="__cf_email__" data-cfemail="a0c5cec7c1c7c5cdc5ced4d3e0cfd3c38ecdc9cc">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
In December 2022, the Secretary of Defense established OSC to
attract and scale private capital to technologies critical to the
national security of the United States. Furthermore, in 2024, Congress
authorized OSC as part of the National Defense Authorization Act (NDAA)
for Fiscal Year 2024. The NDAA states that OSC shall:
(a) develop, integrate, and implement capital investment strategies
proven in the commercial sector to shape and scale investment in
critical technologies and assets,
(b) identify and prioritize promising critical technologies and
assets that require capital assistance and have the potential to
benefit the DoD, and
(c) make eligible investments in such technologies and assets, such
as supply chain technologies not always supported through direct
investment.
Covered Technology Categories
The NDAA designates the following 31 categories as a ``Covered
Technology Category.''
<bullet> Advanced bulk materials (including dielectrics, alloys,
polymers, and composites)
<bullet> Advanced manufacturing (including upgrades for increasing the
efficiency or quality of existing production processes or for enabling
commercialization of new technologies)
<bullet> Autonomous mobile robots
<bullet> Battery storage (including lithium ion, advanced lead acid,
and alternate batteries, as well as fuel cells)
<bullet> Biochemicals
<bullet> Bioenergetics
<bullet> Biomass (including conversion-ready feedstock)
<bullet> Cybersecurity
<bullet> Data fabric (including integration across disparate domains)
<bullet> Decision science (including ensemble learning methods for
portfolio optimization)
<bullet> Edge computing
<bullet> External communication
<bullet> Hydrogen generation and storage
<bullet> Mesh networks (including off-grid communications)
<bullet> Microelectronics assembly, testing, or packaging
<bullet> Microelectronics design and development
<bullet> Microelectronics fabrication
<bullet> Microelectronics manufacturing equipment
<bullet> Microelectronics materials
<bullet> Nanomaterials and metamaterials
<bullet> Open RAN
<bullet> Optical communications (including free space and optical
fiber)
<bullet> Sensor hardware
<bullet> Solar (including power system and management components)
<bullet> Space launch
<bullet> Spacecraft
<bullet> Space-enabled services and equipment (including in-space
operations and associated ground equipment)
<bullet> Synthetic biology
<bullet> Quantum computing
<bullet> Quantum security
<bullet> Quantum sensing
The NDAA authorizes OSC to provide capital assistance, defined as a
``loan, loan guarantee, or technical assistance'' for eligible
investments. Eligible investments are those made in a technology that
is (a) in a Covered Technology Category and (b) not solely utilized in
defense applications. OSC is seeking public comment on the capital
needs of industries and assets related to the Covered Technology
Categories to inform the design of DoD loan program.
Specific Requests for Information
The following statements and questions cover the major topic areas
for which OSC seeks comment. They are not intended to limit the topics
that may be addressed. Responses may include any topic believed to
inform the U.S. Government's efforts in developing recommendations for
supporting the design of the DoD Loan Program, regardless of whether
the topic is included in this document.
Respondents are encouraged to respond to any or all of the
following questions and topic areas. Responses may include estimates,
which should be designated as such. Your responses may include
supporting data and examples. We welcome submission of publications or
studies that support your responses as attachments.
Questions
The questions section of this Federal Register notice is split into
four parts: (a) General, (b) Financing, (c) Economic Outlook, and (d)
Competition.
General
1. From the Covered Technology Categories referenced in the
Background of this SUPPLEMENTARY INFORMATION section, please select at
least one Category that best represents your company.
2. What is the 6-digit North American Industry Classification
System (NAICS) code for your business? If your business has more than
one NAICS code, please list those associated with the Covered
Technology Categories noted in your response to Question 1.
3. Does your company largely produce, integrate, or otherwise use
equipment and/or services for a purpose that aligns with any of the
Covered Technology Categories enumerated in the Background section?
Please list each Covered Technology Category and define the
relationship.
4. What are the primary technology asset(s)/equipment utilized in
your sector for production or provision of services? What is the
typical useful life of these technology equipment/assets?
5. Is there a secondary market for the technology equipment/
asset(s) noted in Question 4? If so, how is the secondary
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market value typically established (e.g., public benchmark, appraisals,
etc.)?
6. If applicable, how are these technology equipment/asset(s)
transported from the source of origin to your facilities (airship, sea
ship, rail, trucks)? If shipped via sea, are you/or your supplier able
to transport them on a U.S.-flagged vessel?
7. How long has your company been in business? How many years has
your firm operated in the specified Covered Technology Category?
8. What was your company's annual revenue over the past five years?
(Please list each year and the respective annual value).
9. What were your company's earnings before interest and taxes
(EBIT), and EBIT margins from the past five years? (Please list each
year and the respective annual value).
10. What is your company's actual or implied Credit Rating Agency
rating (e.g. BB+, Ba1, etc.)?
11. What is the current size of your company by employee count?
12. In which city, state, and countries are your company's
headquarters, and manufacturing plants located?
13. In which geographies are your suppliers most concentrated?
Please specify the state(s) or country(ies) if foreign.
14. In which geographies are your customers most concentrated?
Please specify the state(s) or country(ies) if foreign.
15. Who are the major lenders in your market segment (e.g., banks,
specialty firms, private credit)? Please specify the institutions.
16. What percentage of your annual revenue has been spent on
Research and Development (R&D) over the past five years? (Please list
each year and the respective annual value).
17. What percentage of your annual revenue has been spent on
capital expenditures (CapEx) over the past five years? (Please list
each year and the respective annual value).
18. How often is capital expenditure (CapEx) funding usually needed
(e.g., once every three years)?
Financing
19. Have you previously used any form of U.S. Government funding?
If so, please specify which funding tool(s) your company used and how
(e.g., loans, loan guarantees, etc.). If not, please specify why.
20. Have you ever accessed or attempted to obtain Federal credit
(e.g., direct loans or loan guarantees) in the past, or are you
considering it in the future? If so, please specify the Federal credit
programs or institutions.
21. Have Federal credit programs been able to successfully address
the funding needs in your market segment? Please explain.
22. Which types of debt financing are currently available to your
company for the purposes of working capital, capital/equipment lease or
purchases, and acquisition?
23. What are the sources of debt financing in your market segment
(e.g., Banks, Credit Unions, Non-Bank Lenders, Funds, etc.)?
24. On average, how long does it take a company in your market
segment to secure the needed debt funding for working capital, capital/
equipment purchases or leases, acquisitions, etc.? How critical is the
speed of funding availability in your line of business?
25. What are the typical terms for such debt instruments (e.g.,
debt/equity ratio, repayment tenor, fund availability period, grace
period, amortization structure, security/collateral package, covenants,
interest rates, credit spreads, etc.)?
26. What are the limitations with existing forms of debt capital
available to your company or sector (e.g., type, cost, availability,
covenants, eligibility, etc.)?
27. What are the typical debt instruments used to fund the
procurement of the technology assets/equipment in your sector?
28. What forms of working capital funding are available to
companies in your market?
29. Have you deferred production expansion due to lack of access to
capital or the cost of capital?
30. What is the seniority level of the typical debt instrument in
your market? Are there any covenant restrictions preventing additional
borrowing that is pari-passu or senior to existing debt on your balance
sheet (if any)?
31. What are some of the limitations or challenges in accessing
funding in your sector?
32. Are there any niche areas in your sub-sector that struggle with
accessing the needed debt capital? Please describe the reasons for
this.
33. Would you benefit from OSC offering any of the following types
of loan or loan guarantees: working capital loans or lines of credit,
asset-backed loans, equipment financing, or acquisition financing?
34. Subject to the criteria and eligibility requirements to be
determined by OSC, what factors should OSC consider important when
reviewing applications for the DoD Loan Program?
Economic Outlook
35. What is your outlook on the five-year macroeconomic projection
for your industry? What macroeconomic headwinds/tailwinds are most
impacting you?
Competition
36. Who are the main competitors in your space? Where are they
located geographically? Please list the city and state, if known. If
the competitor is located overseas, please list the city and country.
37. Do you have foreign competition in your industry? Foreign
competition is defined as a competing firm with headquarters outside of
the United States. If yes, please list the firm(s) as well as the
country they are headquartered in.
38. Are you aware of or facing competition backed by foreign
government financing? If so, please identify the competition and the
type of foreign government financing provided.
Requirements for Written Comments
OSC encourages respondents, when addressing the points above,
unless raising other challenges related to financing Covered Technology
Categories not explicitly asked, to identify which point they are
responding to by using the same numbers and heading as set forth above.
For example, someone submitting comments responsive to (9), ``What is
your company's actual or implied Credit Rating Agency rating (e.g. BB+,
Ba1, etc.)?'', would use that same text as a heading followed by the
respondent's specific comments responding to it. This formatting will
assist OSC in more easily reviewing and summarizing the comments
received in response to these specific points of inquiry.
Anyone submitting business confidential information should clearly
identify the business confidential portion at the time of submission,
file a statement justifying nondisclosure and referring to the specific
legal authority claimed, and provide a non-confidential version of the
submission. Users submitting a form that contains business confidential
information will need to submit a non-confidential version of the same
form that does not contain the confidential business information. The
non-confidential version of the submission will be placed in the public
file on <a href="https://www.regulations.gov">https://www.regulations.gov</a>. For comments submitted
electronically containing business confidential information, the file
name of the business confidential version should begin with the
characters ``BC.'' Any
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page containing business confidential information must be clearly
marked ``BUSINESS CONFIDENTIAL'' on the top of that page. The non-
confidential version must be clearly marked ``PUBLIC.'' The file name
of the non-confidential version should begin with the character ``P.''
The ``BC'' and ``P'' should be followed by the name of the person or
entity submitting the comments.
Dated: July 18, 2024.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2024-16179 Filed 7-23-24; 8:45 am]
BILLING CODE 6001-FR-P
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