HQ003426OSC02 Area of Interest Back-Office Modernization.pdf

Area of Interest (AOI) for

Office of Strategic Capital Back-Office Modernization

Project Number HQ003426OSC02 Commercial Solutions Opening (CSO) HQ003425CSO02 AOI Title Office of Strategic Capital Back-Office Modernization DoD Program Office Office of Strategic Capital Issued by Washington Headquarters Services / Acquisition

Directorate Instructions See the current version of HQ003425CSO2, Section 2. CSO Procedure, 2.2. Phase 1: White Papers White Papers Due 5:00 PM (EDT) on 13 May 2026 Contracting Point of Contact Danny Uhr

Agreements Officer danny.uhr.civ@mail.mil

OSC CSO Point of Contact William Waterworth Chief of Contracts william.a.waterworth.civ@mail.mil

Background:

The Department of War (DoW) Office of Strategic Capital (OSC) is currently at a critical transition point and is seeking novel business processes to drastically enhance the mission effectiveness of its back-office functionality. Historically focused heavily on initial deal execution and startup activities, the organization must now evolve into a structured, scalable federal credit organization.

Currently, OSC faces severe resource constraints and relies on highly manual, person-dependent, and paper-based processes in key functional areas like credit operations and portfolio management. As the deal pipeline continues to expand rapidly, the lack of a formalized "back of bank" infrastructure introduces unacceptable risks to long-term viability, audit readiness, and alignment with national security objectives. The mission requires an immediate institutionalization of operational capabilities to safeguard resources and ensure sustained mission success.

Problem Statement:

Using the authority in 10 U.S.C. § 4022, OSC seeks a novel business process solution to rapidly design, document, and implement a minimum viable operating model (MVOM) for the Office of Strategic Capital’s back-office. This effort focuses on developing the foundational pillars of a federal credit program infrastructure, spanning credit operations, risk management, portfolio oversight, and compliance, thereby enabling deal teams to focus securely and efficiently on execution.

The desired end state is a fully functional, repeatable, and auditable "back of bank" infrastructure that seamlessly supports OSC’s deal execution teams.

Specifically, OSC will possess:

• A resilient, digital-ready workflow for all credit operations and loan lifecycles.

• Proprietary, in-house credit rating systems and risk management frameworks that are fully compliant with the Federal Credit Reform Act (FCRA).

mailto:danny.uhr.civ@mail.mil mailto:william.a.waterworth.civ@mail.mil

• A dedicated portfolio management organizational structure capable of post-close oversight, distressed asset intervention, and national security impact monitoring.

• A robust governance structure with clear internal controls, delegations of authority, and conflict-of-interest management procedures.

• A fully staffed, trained, and structurally sound back-office resilient against single points of failure and prepared for rigorous GAO or IG audits.

The proposed solution is an accelerated engagement (spanning an up to six-month period of performance) to deploy specialized capabilities. The solution will prototype the capability to systematically evaluate existing ad-hoc processes, design standardized frameworks, and implement a comprehensive suite of Standard Operating Procedures (SOPs). By functioning as an integrated modernization task force, the solution will deliver proprietary risk models, process maps, compliance trackers, and talent management strategies, ultimately establishing the core operational scaffolding required for OSC's federal credit operations.

Special Considerations:

• Facilities clearance requirement: None

• Personnel clearance requirements: T1 (Tier 1) investigation

• Required locations: TBD, to include the National Capital Region and potentially other locations worldwide

• Applicable laws, directives, and or/regulations that must be followed (not all inclusive):

Laws:

• Defense Production Act (DPA) Title III: The core authority enabling OSC operations, specifically for expanding and accelerating domestic industrial base capabilities essential to national security.

• CHIPS and Science Act of 2022: Provides funding and incentives for semiconductor manufacturing and research, which aligns with OSC's focus on microelectronics.

• Inflation Reduction Act (IRA): While not explicitly named, the IRA's focus on domestic manufacturing and clean energy technologies overlaps with OSC's investment priorities.

• Federal Acquisition Regulation (FAR): While not a law itself, the FAR implements various acquisition-related laws and governs how the government procures goods and services, which is relevant to OSC's investment strategy.

• National Security Act of 1947: Establishes the framework for national security, which informs OSC's mission.

Regulations:

• DFARS (Defense Federal Acquisition Regulation Supplement): Specific regulations related to defense acquisitions, may be relevant to OSC's implementation of its solution.

• Regulations implementing the DPA Title III: These regulations provide specific guidelines for how the DPA's authorities can be used.

• Export Control Reform Act (ECRA) and related regulations: These regulations control the export of sensitive technologies, which is relevant to OSC's investments in dual-use technologies.

• CFIUS (Committee on Foreign Investment in the United States) regulations: Regulations governing foreign investment in U.S. companies, a consideration for OSC when partnering with private capital.

Policies:

• Executive Order 14017, "America's Supply Chains": Focuses on strengthening critical supply chains, aligning with OSC's objectives.

• Executive Order 14271, Ensuring Commercial, Cost-Effective Solutions in Federal Contracts

• Executive Order 14275, Restoring Common Sense to Federal Procurement

• National Security Strategy (NSS): The overarching national security strategy, which sets the context for OSC's investments.

• National Defense Strategy (NDS): The Department of Defense's strategy, which provides more specific guidance on defense priorities.

• DoD's Critical Technology Areas: These areas guide OSC's investment focus. The document specifically mentions microelectronics, renewable energy generation and storage, and advanced materials.

• OSC's Investment Strategy: While not a law or regulation, the document itself sets policy for the organization.

Eligibility:

Requirements for participation include being able to deliver the technical attributes and capabilities described in the Area of Interest along with satisfying at least one of the conditions for eligibility outlined in the CSO HQ003425CSO02 Section 1.4. Eligibility. All relevant submissions received in accordance with the instructions in this AoI and the CSO will be evaluated, including those fully or partially produced outside of the USA.

Procedures:

Any award resulting from this AOI shall be in accordance with the CSO procedures detailed in HQ003425CSO02. The instructions in the CSO, and any additional instruction as specified in this AOI posting, must be followed. The Government intends to conduct this AOI in two phases as detailed in the CSO. At least one of the following conditions found at 10 U.S.C. 4022(d) must be satisfied to enter into a prototype OT agreement.

Response:

White papers submitted in response to this AoI shall be submitted in accordance with the procedures in HQ003425CSO2 and the table at the top of this AOI. The Government may extend the response date by amending this AoI. Companies are responsible for monitoring SAM.gov for amendments to this AOI posting.

Questions:

Questions should be sent to the OSC CSO POC. Please be advised submitted questions and answers may be posted to SAM.gov.

https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4022&num=0&edition=prelim#:%7E:text=%2DThe%20Secretary%20of%20Defense%20or,prototype%20the%20design%2C%20development%2C%20or