ISR (Industrial Security Regulation)

What is ISR (Industrial Security Regulation)?

The Industrial Security Regulation (ISR) defines the requirements for government contractors and subcontractors related to safeguarding classified information they handle while working on government contracts. This includes personnel security, facility security, and information security measures. Compliance with the ISR is crucial for maintaining eligibility for government contracts involving classified data.

Definition

The ISR provides the framework and guidelines that govern the protection of classified information disclosed to or developed by contractors and subcontractors. It dictates how contractors must manage classified information, from receipt and storage to transmission and destruction. The legal and regulatory basis stems from Executive Order 12829 and its implementing directives, primarily the National Industrial Security Program Operating Manual (NISPOM). Failure to comply with the ISR can result in contract termination, loss of facility clearance, and other penalties.

Key Points

• Facility Clearance (FCL): Contractors handling classified information at their facilities must obtain and maintain a facility clearance, demonstrating the organization's ability to protect classified data.
• Personnel Security Clearances (PCLs): Employees requiring access to classified information must undergo background checks and obtain the appropriate level of personnel security clearance.
• Information Security: Contractors must implement robust information security measures, including access controls, encryption, and physical security, to protect classified information from unauthorized disclosure.
• Reporting Requirements: Contractors are obligated to report security incidents, such as data breaches or unauthorized access, to the government promptly.

Practical Examples

1. Classified Document Control: A contractor working on a classified defense project must establish procedures for controlling access to classified documents, including logging distribution, tracking locations, and securely storing them.
2. Security Incident Response: If a contractor discovers a potential data breach involving classified data, they must immediately report the incident to the appropriate government authorities and initiate a thorough investigation.
3. Employee Security Training: A contractor with a facility clearance must provide regular security training to all employees with access to classified information, covering topics such as security policies, threat awareness, and reporting procedures.