14.409-2
Award of classified contracts
When classified information is involved in a solicitation, contracting officers must ensure secure handling and controlled disclosure of award information, following strict agency procedures.
Overview
FAR 14.409-2 addresses the procedures for awarding contracts that involve classified information. When classified information has been provided or generated during the solicitation process, contracting officers must ensure that unsuccessful bidders, including those who did not submit a bid, are instructed on how to properly handle or dispose of such information according to agency-specific procedures. Additionally, the names of successful bidders and contract prices are only to be disclosed to unsuccessful bidders upon request, and never communicated by telephone. This section reinforces the need for heightened security and controlled dissemination of sensitive information during the contract award process.
Key Rules
- Disposition of Classified Information
- Unsuccessful bidders must be advised to handle or dispose of classified information per agency procedures.
- Disclosure of Award Information
- The name of the successful bidder and contract price are only provided to unsuccessful bidders upon request.
- Prohibition on Telephone Disclosure
- No information regarding a classified award may be disclosed by telephone.
Responsibilities
- Contracting Officers: Must instruct unsuccessful bidders on classified information disposition and control the release of award information.
- Contractors: Must follow agency procedures for handling or disposing of classified information received during the solicitation.
- Agencies: Must establish and enforce procedures for the secure handling and communication of classified contract information.
Practical Implications
- This regulation exists to protect classified information and ensure it is not improperly disclosed or mishandled during the contract award process.
- Contractors must be vigilant in following agency procedures for classified material, even if they did not submit a bid.
- Common pitfalls include improper disposal of classified information and unauthorized disclosure of award details, especially via unsecured communication channels like the telephone.