General
FAR 4.402 mandates strict procedures and documentation for safeguarding classified information shared with contractors, emphasizing the use of DD Form 254 and compliance with NISPOM requirements.
Overview
FAR 4.402 outlines the general requirements for safeguarding classified information released to contractors, licensees, and grantees under the National Industrial Security Program (NISP). It references key Executive Orders and the National Industrial Security Program Operating Manual (NISPOM), which set the standards for protecting classified information in industry. The section details the use of DD Form 254 for providing security classification guidance to contractors and subcontractors, including requirements for identifying performance locations with CAGE codes and the use of electronic systems for form submission. It also addresses procedures for foreign classified contracts and references additional policies for safeguarding classified information in patent applications.
Key Rules
- National Industrial Security Program (NISP) Compliance
- Contractors must follow NISPOM and related DoD manuals for handling classified information.
- Use of DD Form 254
- Agencies must issue DD Form 254 to contractors/subcontractors requiring access to classified information, specifying security requirements and performance locations.
- CAGE Code Requirements
- Each contractor/subcontractor location on DD Form 254 must have a unique CAGE code unless work is at a government facility, in which case an agency location code is used.
- Electronic Submission
- DD Form 254 should be completed electronically in the NISP Contract Classification System (NCCS), unless a nondefense agency has its own system.
- Foreign Classified Contracts
- Procedures for foreign contracts involving classified information are governed by 32 CFR 117.19.
- Patent Safeguarding
- Additional requirements for classified information in patents are found in FAR Part 27.
Responsibilities
- Contracting Officers: Ensure DD Form 254 is properly completed and issued; verify CAGE codes; use NCCS or approved systems for form submission.
- Contractors: Comply with NISPOM and DD Form 254 requirements; ensure all performance locations and subcontractors are properly identified with CAGE codes.
- Agencies: Oversee compliance, maintain security agreements, and provide guidance on safeguarding classified information.
Practical Implications
- This section ensures that classified information is properly protected when shared with industry, reducing the risk of unauthorized disclosure.
- Contractors must be diligent in following security protocols, accurately completing forms, and maintaining up-to-date CAGE codes for all relevant locations.
- Common pitfalls include incomplete DD Form 254s, missing CAGE codes, or failure to use the correct electronic submission system.