Definitions.docx

DEFINITIONS

· Adversarial Supply Chain Operations (ASCO): The actions taken across the entire system life cycle to attack and exploit the supply chain. ASCO can include threatening, subverting, or exploiting the supply chain. These operations are carried out through the compromise, subversion, and exposure of material and components both to and through the supply chain. Possible impacts of ASCO on mission assurance include adverse effects on material, system operations, or key capabilities. Supply chain subversion is a subset of ASCO that refers to the deliberate infiltration or modification of a supply chain by an adversary such that the supply chain serves a covert or clandestine function for that adversary, typically detrimental to the supply chain end user. Counterfeits are a subset of ASCO as these products are deceptively presented as another product of greater value and enter the supply chain when purchased. These actions can often be committed devoid of the United States Government’s intent for and/or knowledge of the ASCO.

· Affiliate: Any entity effective owned or controlled by another entity.

· Beneficial Owner: The true owner of a security, who may, for convenience, be recorded under the name of a nominee. Such ownership entitles the owner to the power to vote or direct the voting of a security or to impose or direct the disposition of a security.

· Bond: A certificate which is evidence of a debt in which the issuer promises to repay a specific amount of money to the bondholder, plus a certain amount of interest, within a fixed period of time.

· Convertible Debentures: Bonds which the holder can exchange for shares of voting stock.

· Covenant: A detailed clause in a lending agreement designed to protect the lender.

· Critical Component: A component which is or contains ICT including hardware, software, and firmware, whether custom, commercial, or otherwise developed, and which delivers or protects mission critical functionality of a system or which, because of the system's design, may introduce vulnerability to the mission critical functions of a system. For the purposes of this provision, a critical component does not include subcomponents of commercial end items, but can include a commercial end item, a custom component, and subcomponents of custom components otherwise meeting the definition. The DOJ reserves the right to designate any component as a ‘critical component’ independent of contractor’s labeling.

· Debenture: A general debt unsecured by a pledge of any specific piece of property. Like any other general creditor claims, a debenture is secured by any property not otherwise pledged.

· Debt-to-Equity Ratio: Total liabilities divided by total shareholders’ equity (total assets minus total liabilities of a corporation; also called stockholders’ equity and net worth). This shows to what extent owners’ equity can cushion creditors’ claims in the event of liquidation.

· Equity Security: An ownership interest in a company, most often taking the form of corporate stock.

· Foreign Interest: Any Foreign Government, or representative of a Foreign Government any form of business enterprise or legal entity organized, chartered, or incorporated under the laws of any country other than the U.S. or its possessions and trust territories, and any person who is not a citizen or national of the United States.

· Foreign Person: Any foreign interest and any U.S. person effectively owned or controlled by a foreign interest.

· Guarantor: One who makes the guaranty (an agreement or promise to answer for the debt, default, or miscarriage of another).

· Immigration Status: Legal basis for non-U.S. citizen’s residence in the U.S. (e.g., work visa, admission for permanent residence). Note: Immigration and Naturalization Service Form 1-9 is an excellent source for this information.

· Information And Communications Technology (ICT): Includes all categories of ubiquitous technology used for the gathering, storing, transmitting, retrieving, display, representation, presentation, organization, management, security or processing of data (e.g., microelectronics, printed circuit boards, computing systems, software, signal processors, mobile telephony, satellite communications, and networks). ICT is not limited to, information technology (IT) as defined in section 11101 of title 40, U.S.C., rather this term reflects the convergence of IT and communications.

· Information System: A discrete set of information resources organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of information.

· Joint Venture: A partnership or cooperative agreement between two or more persons or firms usually restricted to a single specific undertaking. Normally, the undertaking is of short duration, such as for the design and construction of a dam.

· Liability: Claim on the assets of a company or individual.

· Licensing Agreement: A permit granted by one business to another which permits duplication of processes and production of similar items.

· Management Positions: For the purposes of the questions on this form, management positions shall include owners, officers, directors, partners, regents, trustees, senior management officials, other executive personnel, and the facility security officer.

· Nominee Share: A share of stock or registered bond certificate which has been registered in a name other than the actual owner.

· Proxy: One who acts for another. Also, the document by which such representative is authorized to act.

· Representative of a Foreign Interest (RFI): A citizen or national of the U.S., who is acting as a representative of a foreign interest (see Foreign Interest).

· S.E.C. Schedule 13D: This schedule discloses beneficial ownership of a certain registered equity securities. Any person or group of persons who acquire a beneficial ownership of more than five percent (5%) of a class of registered equity securities of certain issuers must file a Schedule 13D reporting such acquisition with certain other information.

· S.E.C. Schedule 13G: This schedule is a much abbreviated version of Schedule 13D that is only available for use by a limited category of persons (such as banks, broker/dealers, and insurance companies) and even then only when the securities were acquired in the ordinary course of business and not with the purpose or effect of changing or influencing the control of the issuer.

· Sales Agreement: An agreement between two parties for the sale of goods or services on a continuing basis.

· Stock Option: An option is the right to buy or sell at some point in the future.

· Street Name: The common practice of registering publicly traded securities in the name of one or more brokerage firms.

· Subordinated Debenture: A bond having a claim on assets only after the senior debt has been paid off in the event of liquidation.

· Supply Chain: The linked set of resources and processes between acquirers, integrators, and suppliers that begins with the sourcing of supplies and/or services and extends through the manufacturing, processing, design, development, handling, and delivery of supplies and/or services to the acquirer.

· Supply Chain Risk: The risk that an adversary may sabotage, maliciously introduce unwanted function, or otherwise subvert the design, integrity, manufacturing, production, distribution, installation, operation, maintenance or disposal of an information system so as to surveil, deny, disrupt, or otherwise degrade the function, use, or operation of such system.

· Supply Chain Risk Management (SCRM): The systematic process for managing supply chain risk by identifying susceptibilities, vulnerabilities and threats throughout a supply chain in an effort to develop associated mitigation strategies - whether presented by the Contractor, the supplied product and its subcomponents, or the supply chain across the entire system lifecycle (e.g., Design and Engineering, Manufacturing and Assembly, Distribution and Warehousing, Operations and Support, and Disposal and Return).

· System Component: All hardware, software and firmware within the boundaries of an Information System as defined and described in NIST SP 800-18.

· Total Capital Commitment: The sum of money and other property an enterprise uses in transacting its business.

· U.S. Person: Any form of business enterprise or entity organized, chartered, or incorporated under the laws of the U.S. or its possessions and trust territories, and any person who is a citizen or national of the U.S.