4.404
Contract clause
FAR 4.404 requires contracting officers to include the appropriate security requirements clause in contracts involving classified information, with specific alternates for certain contract types and agency exceptions.
Overview
FAR 4.404 mandates the use of the contract clause at 52.204-2, Security Requirements, in solicitations and contracts where access to classified information may be required. The section provides specific instructions for using alternate versions of the clause in certain contract types, such as cost contracts for research and development with educational institutions (Alternate I) and construction or architect-engineer contracts requiring employee identification for security (Alternate II). If the contracting agency is not covered by the National Industrial Security Program (NISP) and has its own substantially similar clause, the agency-prescribed clause should be used instead, following agency procedures.
Key Rules
- Mandatory Clause Inclusion
- Insert clause 52.204-2 in contracts requiring access to classified information, unless agency-specific exceptions apply.
- Alternate I for R&D with Educational Institutions
- Use Alternate I for cost contracts for research and development with educational institutions.
- Alternate II for Construction/Architect-Engineer Contracts
- Use Alternate II when employee identification is required for security in construction or architect-engineer contracts.
- Agency-Specific Clauses
- Use agency-prescribed clauses if the agency is not under NISP and has substantially similar requirements.
Responsibilities
- Contracting Officers: Ensure the correct version of clause 52.204-2 (or agency equivalent) is included in applicable contracts and solicitations.
- Contractors: Comply with the security requirements specified in the clause and any alternates.
- Agencies: Prescribe and enforce agency-specific clauses when not covered by NISP.
Practical Implications
- This section ensures that contracts involving classified information include appropriate security requirements, tailored to contract type and agency coverage.
- Failure to include the correct clause or alternate can result in noncompliance and security risks.
- Contractors must be aware of which version of the clause applies to their contract and adhere to all specified security obligations.