SD APEX Accelerator News

 

On OCT 14th, 2026, PIEE will implement a configuration change to the amount of time an account may be left unused before it goes into an inactive status.

This means you will need to log into your PIEE account at least every 34 days to keep your account active. Previously this was set to 60 days.

Who: All PIEE account holders
What: Log into your PIEE account at least every 34 days to keep it active
When: Wed, 15 Oct 2026 17:00 EST
Why: This change is to comply with DoW and DLA cyber security standards

The federal SBIR and STTR programs have been reauthorized through September 2031, providing continued access to one of the nation’s most important sources of early-stage innovation funding. The reauthorization includes enhanced commercialization support, expanded research security requirements, and new opportunities to help promising technologies move more quickly toward the marketplace. South Dakota innovators are encouraged to stay engaged as agencies release new funding opportunities and implement these updates.

SBIR/STTR Proposal Support – Matching Funds Available!

SD SBIR has partnered with BBCetc to provide SBIR/STTR proposal preparation assistance. SD SBIR will offer a 50/50 cost match, up to maximum reimbursement of $1000 per company. To learn more and apply for matching funds, visit the SDSBIR page.

Upcoming Webinar: ABCs of the SBIR/STTR Program

Interested in learning more about SBIR/STTR funding opportunities? BBCetc will host the webinar “ABCs of the SBIR/STTR Program” on October 22, 2026, from 12:00 to 1:30 p.m. CT.

ind out how the government’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs can provide a source of non-dilutive R&D funding for initial development of your high-risk, innovative idea and proof that it has potential in the marketplace.

Register today to reserve your spot!

Dan Engebretson, Ph.D.
Vice President for Research

UNIVERSITY OF SOUTH DAKOTA
Office of Research and Sponsored Programs
414 E. Clark St. | Vermillion, SD 57069
P: 605-658-3760
daniel.engebretson@usd.edu

Roles and Subcontracting Plan Reporting

Jul 15, 2026There is urgent new information about Subcontracting Plan Reporting and assigned roles in SAM.gov.  See https://sam.gov/esrss for the latest updates

EFFECTIVE IMMEDIATELY: DoW Suspends CMMC Phase 2 Requirements

The Pentagon placed an immediate freeze on forthcoming cybersecurity requirements after government research suggested the policy would drive many businesses out of the defense industrial base at a time when the U.S. military urgently needs their innovations.

Defense Department Chief Information Officer Kirsten Davies and Under Secretary of Defense for Acquisition and Sustainment Michael Duffey unveiled plans Monday to suspend the much-anticipated Cybersecurity Maturity Model Certification (CMMC) Phase 2 requirements that were set to take effect Nov. 10. A new CMMC Reform Task Force is expected to conduct a review of the entire program and submit a report of its findings and recommendations within the next 60 days.

This major pause comes as contractors have been hustling to obtain third-party assessments of their CMMC compliance in preparation for that near-term enforcement date.

“Every dollar spent on security is a wise dollar spent, and so those who have been forward leaning in uplifting their cyber posture — in assessing what their posture is, and doing something about it — they have contributed to national security,” Davies told a small group of reporters ahead of the official announcement. “That is not money that is spent in vain, and so that is a huge message.”

View the news release: https://www.war.gov/News/Releases/Release/Article/4542329/forging-the-arsenal-of-freedom-department-of-war-suspends-cmmc-phase-ii-require

The 1260H List Just Got a Lot Bigger — Here’s What It Means & What the list actually is

Section 1260H of the FY2021 NDAA requires DoD to publish an annual roster of “Chinese military companies” — firms the government has determined are tied to the People’s Liberation Army, the Central Military Commission, or China’s broader military-civil fusion strategy. Being named on the list isn’t a sanction by itself. It doesn’t block a company from doing business in the U.S. But it does trigger a growing web of downstream consequences, and that web is exactly what’s tightening this year.

Why Does This Update Matter More Than Past Ones?

Two dates matter most right now:

June 30, 2026 — DoD is now prohibited from directly contracting with any entity

on the 1260H list, or with entities they control, for goods, services, or technology.

June 30, 2027 — a broader restriction kicks in, barring DoD from procuring goods or services that involve a listed entity anywhere in the supply chain, even indirectly through a subcontractor.

DoD is barred from contracting with listed biotech firms now automatically swept into the BIOSECURE Act’s “biotechnology company of concern” category, which carries its own separate set of federal procurement restrictions. None of this means a supplier relationship with, say, a component distributor is automatically disqualifying. But it does mean the due-diligence bar just moved, and clients who haven’t thought about it before need to start.

How This Touches Businesses

Most of South Dakota businesses aren’t prime defense contractors trading directly with a company like Huawei. The real exposure is quieter and easier to miss:

Supply chain pass-through. A client’s Tier 2 or Tier 3 supplier — a components vendor, a software subcomponent, an electronics reseller — could have ownership

ties to a newly listed parent company without the client ever realizing it. With names like BYD (batteries, EVs) and TP-Link (networking hardware) now on the list, this is far more likely to show up in ordinary commercial supply chains than it was a year ago.

Flow-down clauses. Clients holding DoD prime contracts or subcontracts should expect these prohibitions to show up in flow-down language soon, if they haven’t already. This is very much in the same family as the CMMC flow-down conversations we’ve already been having with clients.

Grants and cooperative agreements. Clients doing DoD-funded research, or work adjacent to biotechnology, should watch for BIOSECURE Act implementation – a multi-year rollout.

Reputational and banking risk. Several 1260H names are already on OFAC’s Non-SDN Chinese Military-Industrial Complex list or the BIS Entity List. A 1260H designation is often a leading indicator, not the end of the story, so a client’s counterparty risk can keep escalating even after the initial listing.

What Businesses Can Do Right Now

  1. DoD’s published notice is the source of truth in this case. Businesses are encouraged to check current suppliers against it rather than relying on secondhand summaries. It’s also worth noting that the list changes annually (and sometimes off-cycle, as the withdrawn February 2026 version showed), so a one-time check isn’t enough.

2.Ask the ownership question, not just the name question. Because the rules now reach parent companies and subsidiaries with 50%+ common ownership, a supplier that doesn’t appear on the list by name can still be caught if its parent does appear on the list. This is a good moment to walk through basic ownership-chain due diligence, especially for electronics, batteries, and networking equipment suppliers.

3.Tie it back to existing compliance habits. If a business already has a CMMC flow-down review process or supply chain risk process, 1260H screening is a natural add-on rather than a brand-new program.

4.Flag the timeline, not just the list. The June 30, 2026 direct-contracting ban is already in effect. The June 30, 2027 indirect/supply-chain ban gives businesses a runway to fix problems now instead of scrambling next year.

5.Loop in legal counsel for anything close to the line. Our role is to help clients spot exposure and ask the right questions — determinations about “control” under Committee on Foreign Investment in the United States (CFIUS) definitions or contract-specific flow-down language are appropriately a job for your attorney.

WHERE TO GO FOR MORE DETAIL:

DLA PIPER

MORRISON FOERSTER

HERBERT SMITH FREEHILLS KRAMER

CLEARY GOTTLIEB

Joint Ventures

Joint ventures in the defense sector are the hot topic these days driven by surging military budgets, raising demand for technology transfer to allies and the mirage of easy money available to U.S. defense companies through the EU Security Action for Europe (SAFE) program seemingly accessible through joint ventures.

Governments around the world increasingly seek industrial partnerships with U.S. defense contractors to strengthen domestic manufacturing, expand technology capabilities, and build resilient defense supply chains. During these discussions, one request from the government frequently arises: the creation of a “joint venture” between a U.S. defense company and a local defense company.

What Lawyers Mean by a Joint Venture

From a corporate law perspective, an equity joint venture generally involves the creation of a jointly owned legal entity through which two or more parties share ownership, governance, capital investment, profits, losses, and strategic decision-making. Such arrangements typically require detailed agreements addressing governance, board composition, intellectual property ownership, financing obligations, dispute resolution, exit rights, and deadlock mechanisms.

Many transactions described commercially as “joint ventures” are instead contractual collaborations. These may include teaming agreements, subcontracting arrangements, licensed manufacturing, technology licensing, co-production agreements, maintenance and sustainment partnerships, research collaborations, offset arrangements, or long-term strategic alliances. Although these relationships may be commercially significant and extend for many years, they do not create a jointly owned enterprise.

Read more at:  e-alerts@millercanfield.com

About the Authors

Pawel Chudzicki is the leader of the Aerospace & Defense Practice at Miller Canfield and founder of Washington, D.C. based Miller Canfield Global Strategies. His practice focuses on cross-border corporate transactions, aerospace and defense, Foreign Military Sales (FMS), Direct Commercial Sales, and strategic investments with particular focus on Poland and Qatar.

Kevin Dent is a Senior Consultant at Miller Canfield Global Strategies. His practice focuses on international business transactions, offset/industrial participation, national security, and regulatory compliance. Previously he was a Senior International Counsel at Raytheon and prior to that a partner and a major international law firm for over two decades.

 

RECOMMENDED READINGS

 

ChatGPT Is Not Your Lawyer (Even If it Sounds Like One), Recent GAO Case Confirms
Using artificial intelligence tools to draft a bid protest can be risky, as one protester recently discovered. In this case, instead of hiring a lawyer, the protester apparently used AI to draft its GAO bid protest–but the AI tool invented cases that didn’t exist, miscited cases for incorrect legal principles, and committed other fundamental mistakes. Read the full account of the GAO bid protest involving AI-generated content.DBE Program in Peril: Recent Legal Challenges and What They Mean for Women- and Minority-Owned Contractors
Recent legal challenges jeopardize the future of the Department of Transportation’s (DOT) Disadvantaged Business Enterprise (DBE) program, a long-standing initiative designed to support minority- and women-owned businesses in federally funded state and local transportation infrastructure projects. Read about the recent legal challenges to the DOT’s DBE program.Ongoing FAR Overhaul: Market Research and the New FAR Part 10
The ongoing Revolutionary FAR Overhaul process (also known as “FAR 2.0”) continues. The RFO team recently released the rewrite of FAR Part 10, which addresses the government’s market research obligations. Review the latest updates to FAR Part 10 and market research requirements.

 

CMMC & FOCI RESOURCES AND NEWS

 

This section highlights items of special interest and importance to the Department of Defense Office of Small Business Programs (DOD OSBP). Please take a moment to visit the sites listed below for additional information.

Cybersecurity Maturity Model Certification (CMMC)/Cybersecurity Compliance Resources
DOD CMMC Resource Page – Resources to assist government contractors with understanding and complying with CMMC/cybersecurity requirements.
Project Spectrum – Project Spectrum is working with APEX Accelerators to assist small businesses in achieving compliance with CMMC/cybersecurity requirements.

Foreign Ownership, Control, and Influence (FOCI) Resources
FOCI Frequently Asked Questions – FOCI is a status or situation in which a contractor with access to classified information has some foreign investment or association with foreign interest. Learn more about the federal government’s requirements relating to FOCI.
https://business.defense.gov/ – The official website of DOD OSBP. It contains additional information, news, events, and other items for those interested in doing business (or currently engaged) with the DOD.

 

 

Defense Contractors Get a Head Start on CMMC Audits
Many federal contractors are initiating Cybersecurity Maturity Model Certification audits even before the Pentagon’s assessment program fully takes effect, according to a newly published report. Learn how federal contractors are preparing early for CMMC audits.CMMC: Defense Industry Gears Up For Cybersecurity Program Implementation
While many defense contractors are moving forward with preparations for the CMMC program’s implementation, some are still taking a “wait and see” approach. Discover how defense contractors are responding to the CMMC rollout.DCSA announces approval of the updated Form 328 (Certificate Pertaining to Foreign Interests)
The Defense Counterintelligence and Security Agency has announced the updated Standard Form (SF) 328, Certificate Pertaining to Foreign Interests, which includes several improvements to increase users’ clarity and understanding of the questions and subsequent requirements.  The updated form features better-scoped questions, comprehensive instructions, definitions, and a Statement of Full Disclosure of Foreign Affiliations used to report foreign employment. View the updates to SF 328 and what they mean for defense contractors.847 Awaiting Takeoff: DCSA Issues Guidance on Expanded Scope of FOCI Assessments
The DCSA intends to publish, in the next 12-18 months, a rule that would require bidders and subcontractors participating in DoD contracts valued at over $5 million, subject to certain exceptions, to disclose FOCI details during the bid or proposal stage and update those details when changes to their ownership structure that implicate FOCI concerns occur. Under the rule, which is required by Section 847 of the 2020 National Defense Authorization Act, the number of defense contractors subject to FOCI requirements could rise from approximately 2,000 to 40,000. Read about the upcoming FOCI disclosure rule and its impact under Section 847.

Rule of Two: OMB Issues Guidance to Increase Small Business Participation on Multiple Award Contracts

On January 25, 2024 the Office of Management and Budget issued guidance on strategies federal agencies should adopt to enable small businesses to participate in multiple-award contracts. This guidance encouraged early engagement and planning for multiple-award contracts to maximize opportunities for small business contract holders; additional consideration of “on-ramps” to allow for businesses to be added during the performance period of the multiple-award contract; and the use of small business set aside orders for competition among small businesses.  Read More: OMB Memo

Read More:White House Fact Sheet

Foreign Ownership, Control or Influence (FOCI)

Foreign investment can play an important role in maintaining the vitality of the U.S. industrial base. Therefore, it’s the policy of the U.S. Government to allow foreign investment consistent with the national security interest of the United States. A company is considered to be operating under FOCI whenever a foreign interest has the power, direct or indirect, whether or not exercised, and whether or not exercisable, to direct or decide matters affecting the management or operations of that company in a manner which may result in unauthorized access to classified information or may adversely affect the performance of classified contracts.

Listen:  Video One 
Listen:  Video Two

OSBP and DAU brings small business a comprehensive, cost-effective platform of cybersecurity information, resources, tools, and training to assist in achieving and maintaining the intended level of cybersecurity and contractual compliance.

The Project Spectrum Blog: Protecting Small Businesses One Company at a Time is available now on the DAU website and can be retrieved at the following link: https://www.dau.edu/blogs/protecting-small-businesses-one-company-time. The Project Spectrum website is located at this link: https://www.projectspectrum.io/#/

If you are a small business looking to increase sales and profit, reduce dependence on existing markets and stabilize seasonal fluctuations, then you should consider exporting.

Develop your Export Plan & Strategy (all sessions are virtual)

1-hour Pre-Training Session

2-hour Weekly Sessions (4)

1-hour Post-Training Session

Registration: Home | South Dakota Trade

  • The Federal Emergency Management Agency’s (FEMA) Public Assistance Program provides supplemental grants to state, tribal, territorial, and local governments, and certain types of private non-profits so that communities can quickly respond to, and recover from, major disasters or emergencies.

  • FEMA also encourages protection of these damaged facilities from future events by providing assistance for hazard mitigation during the recovery process.

For more information on the SD Public Assistance Process, contact your local APEX Accelerator Contracting Specialist (Go To Contact Page, select a county from drop down menu)

South Dakota Department of Transportation Bid Lettings

South Dakota Department of Transportation – (sd.gov)

 

Contact Us

Visit www.sdei.org to contact the The Enterprise Institue.
Visit www.sdmanufacturing.com to contact Manufacturing & Technology Solutions.
Select a county to find the contact person for your area.

{{contact.name}} {{contact.title}}

{{contact.office}}

Email: {{contact.email}}

Phone (office): {{contact.phone_office}}

Phone (cell): {{contact.phone_cell}}

Fax: {{contact.fax}}

Counties: {{contact.counties_str}}