Cybersecurity Compliance and Reporting (Flow-Down Requirement)

The contract mandates the implementation of NIST SP 800-171 security controls and full compliance with DFARS 252.204-7012 to protect covered defense information held or processed by the subcontractor. This includes establishing robust cybersecurity measures to safeguard sensitive data, ensuring proper access controls, data encryption, audit logging, and system monitoring in alignment with federal standards. The subcontractor is obligated to report any cyber incidents involving covered defense information within 72 hours of discovery, facilitating timely response and mitigation efforts under Department of Defense requirements. This is a flow-down requirement under a subcontract tied to the Defense Logistics Agency, classified under NAICS code 541512 for computer systems design services. As a subcontracting obligation, it applies to any entity handling covered defense information on behalf of the prime contractor, embedding cybersecurity responsibilities directly into the supply chain. Compliance is non-negotiable, with continuous monitoring and incident reporting as critical performance expectations, and failure to meet these standards could result in contract termination, financial penalties, or loss of eligibility for future defense work.