Safeguarding Classified Information Within Industry
FAR Subpart 4.4 requires contractors and contracting officers to rigorously safeguard classified information in accordance with federal security standards and contract clauses.
Overview
FAR Subpart 4.4, "Safeguarding Classified Information Within Industry," establishes the requirements and procedures for protecting classified information that is released to or generated by contractors during the performance of government contracts. This subpart outlines the general policy for safeguarding classified material, details the responsibilities of contracting officers, and mandates the inclusion of specific contract clauses to ensure compliance. The regulation is designed to align with national security objectives and ensure that contractors understand and fulfill their obligations regarding classified information. It also references the National Industrial Security Program (NISP) as the overarching framework for industrial security.
Key Rules
- General Policy (4.402)
- Contractors must safeguard classified information in accordance with the National Industrial Security Program Operating Manual (NISPOM) and other applicable regulations.
- Contracting Officer Responsibilities (4.403)
- Contracting officers must ensure that contracts involving classified information include the necessary security requirements and clauses, and verify that contractors have the appropriate facility clearance.
- Contract Clause Requirement (4.404)
- Contracts requiring access to classified information must include the clause at 52.204-2, "Security Requirements," which outlines contractor obligations for safeguarding classified material.
Responsibilities
- Contracting Officers: Must verify contractor facility clearance, include required security clauses, and coordinate with security officials.
- Contractors: Must comply with all security requirements, safeguard classified information, and follow the NISPOM.
- Agencies: Oversee compliance, provide guidance, and coordinate with the Defense Counterintelligence and Security Agency (DCSA) or other security authorities.
Practical Implications
- This subpart ensures that classified information is protected throughout the contracting process, reducing the risk of unauthorized disclosure.
- Contractors must be proactive in understanding and implementing security requirements, or risk contract termination or legal penalties.
- Common pitfalls include failing to obtain proper facility clearance or neglecting to follow required security procedures.