Jennifer Schaus hosts a series of government contracting webinars. Full schedule and recordings at http://JenniferSchaus5.eventbrite.com Tony Anikeeff of Williams Mullen, PC joins us for a discussion about security & facility clearances in government contracting. Full audio & slides avail at: https://www.youtube.com/watch?v=x5OuDZSK6ac
4. Facility Clearance Fundamentals
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5. Facility Clearance Fundamentals
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6. Facility Clearance Fundamentals
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7. Facility Clearance Fundamentals
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Full List of Webinars & Events:
http://JenniferSchaus5.eventbrite.com
9. Facility Clearance Fundamentals
Agenda
– What is a Facility Clearance (“FCL”)?
– Who Needs an FCL?
– Obtaining an FCL
• Foreign Own., Control, & Influence
– Ongoing FCL Compliance
– Related Issues
– Q&A
10. Facility Clearance Fundamentals
Context
• Natl focus on security – post 9/11/01
• Vast Increase in need for clearances to do
govt work
• Highly Valued
• Hard to obtain; Easily lost
• Distinction: Facility Clearance vs Personal
Security Clearance
11. Facility Clearance Fundamentals
What is a Facility Clearance?
• “FCL”: An administrative determination, from a natl security
standpoint, that a facility is eligible for access to classified info
at or below clearance being granted.
• “Facility”: Plant, laboratory, office, college, university, or
comml structure w/ associated warehouse, storage areas,
utilities & components, which are related by function or
location, other than a govt installation.
• Levels: Confidential, Secret, or Top Secret
• DoD Security Agreement (DD Form 441 & 441-1)
12. Facility Clearance Fundamentals
What Facilities Can Get an FCL?
• Facility requires access to classified information.
– Can’t ask for an FCL
• Facility must be bidder / offeror on a govt procurement or
to a Prime or be a sub performing on a govt contract.
• The bid or potential contract must involve access to
classified info.
• “Classified Contract”, "Classified Acquisition”
• Catch 22?
13. Facility Clearance Fundamentals
Pertinent Law
• "Natl Industrial Security Pgm" (“NISP”), E.O. 12829, (58 FR 3479,
1/8/1993), amending E.O. 10865 (25 FR 1583, 2/25/1960), as
amended by E.O. 10909 (26 FR 508, 1/20/1961).
• NISP is implemented by:
– Natl Industrial Security Pgm Ops Manual (“NISPOM”) (DOD
5220.22-M) & ISL’s.
– Industrial Security Reg (ISR) (DOD 5220.22-R).
– FAR Subpart 4.4 - Safeguarding Classified Info w/in Industry;
FAR 52.204-2 - Security Requirements
– Other agency reg & statutes
14. Facility Clearance Fundamentals
FCL Process-Preliminaries
• Need a Requirement – E.g., DD 254, FAR 52.204-2.
• Sponsorship: Gov’t Agency, Prime or Sub
• DSS Facility Clearance Branch – Initial Processing
– Business & Key Personnel Integrity
• DSS Application Pckg
• CAGE Code (https://www.sam.gov/portal/public/SAM/)
• NISPOM (http://www.dss.mil/isp/fac_clear/fac_clear.html)
• Personal Security Clearances – Key Personnel, FSO
• Fingerprint Cards
• SF 328 – Certificate Re: Foreign Interests
• E-Filing
15. Facility Clearance Fundamentals
FCL Process - The DSS ISR Visit
– Documents needed for ISR visit:
• Articles of Inc., Bylaws, Stock Awards, Board Minutes
• Federal TIN
• Filed 10K Rpts
• KMP List: Senior mngt officials, FSO, Exec Committee
Members, all Board members
• Summary of primary business / services provided
• Email, fax, & address information - last 10 years.
• Proof of US Citizenship of FSO
16. Facility Clearance Fundamentals
Industrial Security Program
• NISPOM: Min security requirements for cleared
contractors
• ISR: Guidance on implementing requirements
• Storage vs. non-storage requirement.
• Govt may require add’l safeguards. e.g., Special Access
Prgm -- add’l controls beyond those normally required
will be necessary.
– special clearances & investigative requirements.
17. Facility Clearance Fundamentals
Clearance Process Culmination
– DoD Security Agreement (DD Form 441 & 441-1)
• Govt agrees to issue FCL & inform contractor re/
security classification of info to which contractor
will have access.
• Contractor agrees to abide by security
requirements in the Natl Industrial Security Prgm
Ops Manual (“NISPOM”).
– Kickoff Meeting
18. – SF 328 – Certificate Re: Foreign Interests
– FOCI Action Plan -- Mitigate / Negate FOCI
• Board Resolution
• Voting Trust / Proxy Board
• Security Control Agrmt
• Special Security Agrmt
– Tech Control Plan
– Affiliated Services
– Electronic Communications Plan
Facility Clearance Fundamentals
Foreign Ownership Control & Influence
19. • FSO responsible for compliance
– Training, Compliance Prgm
• ISR Compl Reviews
• Can’t use for profit
• Duration
– Indefinite, 30-day termination notice
• Consequences of Breach
Facility Clearance Fundamentals
Ongoing FCL Compliance