Office of Strategic Industries and Economic Security (SIES)

SIES protects and promotes national security by implementing defense, foreign investment, and industrial sector programs to safeguard a robust and resilient U.S. industrial base.

Office overview and responsibilities

The Office of Strategic Industries and Economic Security (SIES) is responsible for several defense trade and industry policy programs, including the Defense Priorities and Allocations System (DPAS) regulation, the Committee on Foreign Investment in the United States (CFIUS), and offsets in defense trade. SIES operates as a vital component in safeguarding U.S. national security and maintaining the strength of the defense industrial base. Its administration of the DPAS regulation helps ensure that contracts and orders supporting national security programs receive priority scheduling and delivery. Its involvement in interagency and international programs reflects a commitment to collaboration on a broader scale.

SIES utilizes its unique designated authority under the Defense Production Act to conduct surveys and assessments of defense-related technologies and monitor economic and trade issues vital to the U.S. industrial base. Under the authority of the Trade Expansion Act of 1962, as amended, SIES also conducts Section 232 national security investigations to determine the effect of imports on the national security.

Notably, SIES plays a pivotal role in coordinating the Bureau of Industry and Security's participation in key interagency committees, including CFIUS, where strategic decisions are made to safeguard national security arising from foreign investments into and acquisitions of U.S. businesses. SIES works closely with interagency partners on programs such as Excess Defense Articles, international cooperative agreements, offsets in defense trade, and defense trade advocacy.

SIES represents BIS interests at NATO, serving as the U.S. representative on the NATO Energy Planning Group, which supports NATO’s Resilience Committee. Additionally, the office qualifies U.S. businesses to bid on NATO contracts. In essence, this office's multifaceted responsibilities underscore its integral role in shaping and fortifying U.S. economic and security interests on both domestic and international fronts.

Investment Security Division (ISD)

Committee on Foreign Investment in the United States

CFIUS is an interagency committee authorized to review certain transactions involving foreign investment in the United States and certain real estate transactions by foreign persons, in order to determine the effect of such transactions on the national security of the United States.

Learn more about the Committee on Foreign Investment in the United States

Defense Industrial Base Division (DIB)

Industrial Base Assessments

SIES/DIB utilizes its unique designated authority to conduct surveys and assessments of defense-related technologies, and to monitor economic and trade issues vital to the U.S. industrial base as specified in congressional mandates and executive orders. DIB’s capabilities are leveraged through partnerships with a wide range of defense and civilian federal agencies, industry associations, state and local governments, and universities.

DIB conducts primary research and analysis of critical technologies and industrial capabilities of key defense-related sectors. The office uses industry-specific surveys to obtain essential employment, financial, production, research and development, export control, and other data – information unavailable from any other source.

Learn more about Industrial Base Assessments

Section 232 Investigations

A Section 232 investigation is conducted under the authority of the Trade Expansion Act of 1962, as amended. The purpose of the investigation is to determine the effect of imports on the national security. Investigations may be initiated based on an application from an interested party, a request from the head of any department or agency or may be self-initiated by the Secretary of Commerce.

The Secretary’s report to the President, prepared within 270 days of initiation, focuses on whether the importation of the article in question is in such quantities or under such circumstances as to threaten to impair the national security. The President can concur or not with the Secretary’s recommendations and take action to “adjust the imports of an article and its derivatives” or other non-trade related actions as deemed necessary.

Learn more about Section 232 Investigations

Defense Programs Division (DPD)

Defense Priorities and Allocations System (DPAS)

The goal of this course is to provide a basic understanding of the DPAS as well as provide a guide for applying the DPAS to contracts and purchase orders. As a result of the SAT increase, U.S. firms are not required to place a priority rating on an order of less than $125,000 (one half of the revised the SAT of $250,000), as this amount is greater than $75,000.

Defense Priorities and Allocations System (DPAS)

DPAS regulation in the E-CFR

GSA Deviation to CAAC Letter 2018-02

Department of Defense, Defense Production Act Title

Offsets in Defense Trade

The Bureau of Industry and Security (BIS) prepares an annual report to Congress on the impact of offsets in defense trade pursuant to section 723 of the Defense Production Act of 1950, as amended.

Learn more about Offsets in Defense Trade

Business Opportunities with NATO

The Bureau of Industry and Security (BIS) encourages U.S. firms to pursue bidding opportunities with the North Atlantic Treaty Organization (NATO). U.S. firms may pursue NATO bidding opportunities in two ways: by participating in International Competitive Bidding (ICB) and by registering as a supplier with the NATO agencies.

Learn more about Business Opportunities with NATO

Defense Trade Advocacy

The U.S. Department of Commerce coordinates the use of U.S. Government resources and authority in order to level the playing field by advocating on behalf of U.S. business interests as they compete against foreign firms for specific international contracts or other U.S. export opportunities.

The International Trade Administration’s Advocacy Center is the defense industry’s point of contact for requesting defense trade advocacy. All requests for U.S. Government advocacy assistance for defense-related projects should be submitted to the Advocacy Center.

The Bureau of Industry and Security’s Office of Strategic Industries and Economic Security reviews all defense advocacy requests submitted to the Advocacy Center to determine whether the request is consistent with U.S. foreign policy and national security objectives. Visit the Advocacy Center website for further information on activities and procedures.

Excess Defense Articles Program

Defense’s (DoD) Excess Defense Articles (EDA) program. Excess defense articles are DoD and U.S. Coast Guard-owned articles no longer needed and declared excess by the U.S. Armed Forces. This excess equipment may be offered at reduced or no cost to eligible foreign recipients on an “as is, where is” basis in support of U.S. national security and foreign policy objectives.

Section 516(b)(1)(e) of the Foreign Assistance Act states that EDA transfers shall not adversely impact the U.S. national technology and industrial base, nor reduce the opportunities of U.S. industry to sell new or used equipment to the proposed recipient. In accordance with Executive Order 12163, as amended, the Director of DSCA makes the determination on the impact to industry. Visit DSCA’s website for further information on the EDA program.