Small Business Highlight: Industry FSO

Editor's note: This is a new, recurring section of The MC Post we are adding as a way to highlight many of the amazing small businesses across the defense industrial base that are part of Mission Cultivate. Hear from them in their own words.

Industry FSO helps defense contractors get and maintain their facility clearance without losing momentum. Our team of experienced facility security officer and former DCSA professionals handles the day-to-day security management, audit prep, and ongoing compliance that many small and mid-sized companies don’t have the bandwidth to manage internally. We translate the clearance process into practical steps so our clients can stay focused on delivering their capabilities.

How did you get into this space?

I’ve worked as a full-time FSO for most of my career, and I’ve seen how daunting the cleared space can be—especially for small businesses. Many don’t have the resources for a dedicated security professional, so the FSO role often becomes an added responsibility for someone already stretched thin. When companies try to figure it out on their own, it can be confusing and hard to know what to expect, which is why having someone who understands the process and can set realistic expectations makes such a difference. I started consulting part-time to help fill that gap, and over time that work grew into Industry FSO.

What are the biggest challenges for small businesses trying to get or maintain a facility clearance?

One of the biggest challenges for small businesses is the amount of inconsistent or incomplete information available online. Companies try to piece the process together themselves, but without experienced guidance it can feel like they’re submitting paperwork with their fingers crossed. Ownership structures and FOCI issues are often more complex than companies expect, and many don’t realize they can’t simply apply for a facility clearance—they need a DD254 in place first. On top of that, the timeline to final approval is usually much longer than people anticipate.

Where do you tell people to start?

The first step is confirming whether they actually need a facility clearance. Not every opportunity requires one, and it’s important to understand the contract structure before jumping in. If they’re very early stage, we’ll often suggest starting with programs like SBIR/STTR, or with AFWERX, DIU, or other government innovation programs to build traction before pursuing a clearance. From there, we usually schedule a strategy call and, if it makes sense, advise them to speak with their prime about sponsorship before moving forward.

Does the way your business is structured matter?

It’s less about whether you’re a Delaware C-Corp, S-Corp, or LLC, and more about how clearly your ownership and governance are documented. DCSA is going to review your org chart, bylaws or operating agreement, meeting minutes, and any agreements that affect control. You need to be able to clearly show who owns the company and who has decision-making authority.

A lot of companies assume that having a dual citizen on the board or a small percentage of foreign ownership is automatically a red flag. That’s not necessarily the case. What matters is transparency and being able to demonstrate there isn’t an unsafe degree of foreign ownership, control, or influence. And even when there is foreign investment, there are established mitigation structures that can address DCSA’s concerns if handled correctly.

Are there any misconceptions you’d like to dispel?

One of the biggest misconceptions is that companies can proactively apply for a facility clearance on their own. The process has to be initiated through sponsorship tied to a legitimate classified need—it’s not something you can just submit paperwork for and wait on approval. Another common misunderstanding is timeline. Even when everything is done correctly, the clearance process is rarely quick, and companies need to plan for that reality upfront.

What are the biggest benefits of working with Industry FSO?

Our clients get experienced, hands-on security management without the cost of hiring a full-time FSO. We have team members who’ve worked extensively with DCSA, so we know how to spot common issues in FCL applications and security programs before they become problems. Instead of reacting to findings, our clients go into reviews organized and confident.

You’re essentially getting a team of experts maintaining your program at a very reasonable cost. That level of oversight gives companies real peace of mind so they can focus on executing their contracts and growing their business.

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Get connected with Industry FSO:

Website: https://industryfso.com/

Mission Cultivate: https://app.missioncultivate.com/organizations/019c2649-edcc-7f47-9a4c-253fb4c7acd6

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