On April 1, the Office of Strategic Capital (OSC) announced that it received more than 200 applications, totaling over $8.9 billion in financing requests, across 38 states for the inaugural solicitation under OSC’s Domestic Manufacturing Loan Program.  As covered in a prior post, under the Notice of Funding Availability (NOFA) released last fall, OSC plans to loan up to $984 million to eligible companies to expand the U.S. industrial base, with individual loans ranging between $10 million to $150 million.  These OSC loans will support advanced manufacturing, cybersecurity, decision science, edge computing, mesh networks, microelectronics, solar, and quantum computing technologies, and eligible investments must have both a defense and a commercial application.   

The public announcement – which we presume is not an April Fools’ Day joke– notes that OSC is reviewing applications and expects to approve financing and deploy capital to selected applicants later this year.  At this time, OSC is not accepting new applications under the Domestic Manufacturing Loan Program.    The loan program is part of OSC’s efforts to expand commercial supply chains for technologies that are critical to U.S. national security.  In January of this year, shortly before the inauguration of President Trump, OSC released its Investment Strategy for the Fiscal Year 2025 (FY2025 Investment Strategy).  Among other things, the FY2025 Investment Strategy identifies and prioritizes investment areas for OSC credit programs, and provides a framework that categorizes national security impacts, corresponding to three key arenas of strategic competition: (1) Near-term control over chokepoints in economic networks; (2) Medium-term leadership within key industries; and (3) Long-term development of critical technologies.  The outcome of OSC’s investment decisions under the Domestic Manufacturing Loan Program will provide insights into the broader strategic direction of OSC and defense industrial base policy, and the implementation of the FY2025 Investment Strategy.

Photo of Scott A. Freling Scott A. Freling

Scott Freling divides his practice between representing civilian and defense contractors in traditional government contracts matters and guiding buyers and sellers—including a number of leading private equity firms—through the regulatory aspects of complex government contracts M&A deals. Scott co-chairs the firm’s Government Contracts…

Scott Freling divides his practice between representing civilian and defense contractors in traditional government contracts matters and guiding buyers and sellers—including a number of leading private equity firms—through the regulatory aspects of complex government contracts M&A deals. Scott co-chairs the firm’s Government Contracts practice.

Scott is sought after for his regulatory expertise and his ability to apply that knowledge to the transactional environment. Scott has deep experience leading classified and unclassified due diligence reviews of government contractors, negotiating transaction documents, and assisting with integration and other post-closing activities. He has been the lead government contracts lawyer in dozens of M&A deals, with a combined value of more than $79 billion. This has included Warburg Pincus and Berkshire Partners’ pending deal to acquire TRIUMPH for approximately $3 billion, Advent’s acquisition of Maxar Technologies for $6.4 billion, Aptiv’s acquisition of Wind River for $3.5 billion, and Veritas Capital’s sale of Alion Science and Technology to Huntington Ingalls for $1.65 billion.

Scott also represents contractors at all stages of the procurement process and in their dealings with federal, state, and local government customers. He handles a wide range of government contracts matters, including compliance counseling, claims, disputes, audits, and investigations. In addition, Scott counsels clients on risk mitigation strategies, including obtaining SAFETY Act liability protection for anti-terrorism technologies.

Scott has been recognized by Law360 as a MVP in government contracts. He is a past co-chair of the Mergers and Acquisitions Committee of the ABA’s Public Contract Law Section.

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Photo of Stephanie Barna Stephanie Barna

Stephanie Barna draws on over three decades of U.S. military and government service to provide advisory and advocacy support and counseling to clients facing policy and political challenges in the aerospace and defense sectors.

Prior to joining the firm, Stephanie was a senior…

Stephanie Barna draws on over three decades of U.S. military and government service to provide advisory and advocacy support and counseling to clients facing policy and political challenges in the aerospace and defense sectors.

Prior to joining the firm, Stephanie was a senior leader on Capitol Hill and in the U.S. Department of Defense (DoD). Most recently, she was General Counsel of the Senate Armed Services Committee, where she was responsible for the annual $740 billion National Defense Authorization Act (NDAA). Additionally, she managed the Senate confirmation of three- and four-star military officers and civilians nominated by the President for appointment to senior political positions in DoD and the Department of Energy’s national security nuclear enterprise, and was the Committee’s lead for investigations.

Previously, as a senior executive in the Office of the Army General Counsel, Stephanie served as a legal advisor to three Army Secretaries. In 2014, Secretary of Defense Chuck Hagel appointed her to be the Principal Deputy Assistant Secretary of Defense for Manpower and Reserve Affairs. In that role, she was a principal advisor to the Secretary of Defense on all matters relating to civilian and military personnel, reserve integration, military community and family policy, and Total Force manpower and resources. Stephanie was later appointed by Secretary of Defense Jim Mattis to perform the duties of the Under Secretary of Defense for Personnel and Readiness, responsible for programs and funding of more than $35 billion.

Stephanie was also previously the Deputy General Counsel for Operations and Personnel in the Office of the Army General Counsel. She led a team of senior lawyers in resolving the full spectrum of issues arising from Army wartime operations and the life cycle of Army military and civilian personnel. Stephanie was also a personal advisor to the Army Secretary on his institutional reorganization and business transformation initiatives and acted for the Secretary in investigating irregularities in fielding of the Multiple Launch Rocket System and classified contracts. She also played a key role in a number of high-profile personnel investigations, including the WikiLeaks breach. Prior to her appointment as Deputy, she was Associate Deputy General Counsel (Operations and Personnel) and Acting Deputy General Counsel.

Stephanie is a retired Colonel in the U.S. Army and served in the U.S. Army Judge Advocate General’s Corps as an Assistant to the General Counsel, Office of the Army General Counsel; Deputy Staff Judge Advocate, U.S. Army Special Forces Command (Airborne); Special Assistant to the Assistant Secretary of the Army (Manpower & Reserve Affairs); and General Law Attorney, Administrative Law Division.

Stephanie was selected by the National Academy of Public Administration for inclusion in its 2022 Class of Academy Fellows, in recognition of her years of public administration service and expertise.

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Photo of Martin Levy Martin Levy

Martin Levy is an associate in the firm’s Washington office and a member of the Government Contracts Practice Group.

Martin has a particular focus on industrial policy matters and helps clients navigate the legal and compliance issues applicable to organizations and projects that…

Martin Levy is an associate in the firm’s Washington office and a member of the Government Contracts Practice Group.

Martin has a particular focus on industrial policy matters and helps clients navigate the legal and compliance issues applicable to organizations and projects that utilize federal incentives, grants, and loans under the Inflation Reduction Act, the Infrastructure Investment and Jobs Act, and the CHIPS and Science Act. Additionally, Martin works with clients to navigate domestic preference requirements under the Build America, Buy America Act, and prevailing wage standards under the Davis-Bacon and Related Acts.

Martin also has extensive experience advising on environmental and climate policy issues, including greenhouse gas regulatory requirements and international standards. Martin maintains an active pro bono practice advising non-governmental organizations, community organizations, and state and local governments on compliance issues associated with utilizing federal financial assistance.

Before joining Covington, Martin was a vetting attorney with the Biden-Harris Presidential Transition, a law clerk at the Eastern District of New York, and an undergraduate environmental law instructor at Boston College.

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Photo of Catherine Wettach Catherine Wettach

Catherine Wettach is an associate in the firm’s Washington, DC office. She is a member of the Government Contracts and White Collar Defense and Investigation Practice Groups.

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