Security & Facility Clearances - Government Contracting


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Jennifer Schaus hosts a series of government contracting webinars. Full schedule and recordings at Tony Anikeeff of Williams Mullen, PC joins us for a discussion about security & facility clearances in government contracting. Full audio & slides avail at:

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Security & Facility Clearances - Government Contracting

  1. 1. Facility Clearance Fundamentals
  2. 2. Facility Clearance Fundamentals• Agenda– Introductions– Presentation– Q & A
  3. 3. Facility Clearance Fundamentals–Introductions:• Fed Bid Speed• Fierce Government• Anthony “Tony” Anikeeff, Williams Mullen PC• Jennifer Schaus – JS & Associates
  4. 4. Facility Clearance Fundamentals• Fed Bid Speed* Software program to manage B2G Opps* Single click integration with* Share notes & project manage RFP’s
  5. 5. Facility Clearance Fundamentals• Fierce Government* Free Govt IT Newsletter* IT in Govt Agencies / Defense / Cloud / Cyber* White Papers / Events / Analysis* In-depth & Quality = Differentiator
  6. 6. Facility Clearance FundamentalsWilliams Mullen PCGovernment Contracts Industry Service Group– domestic & overseas clients– new & well established in the govt marketplace– expand business, preserve what they have achieved & avoid conflict– 250 colleagues w. diverse skills in 10 offices VA, DC & NC
  7. 7. Facility Clearance Fundamentals• Jennifer Schaus & Associates• B2G Services and EventsGSA SchedulesFederal Sales / MarketingFull List of Webinars & Events:
  8. 8. Facility Clearance Fundamentals
  9. 9. Facility Clearance FundamentalsAgenda– 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. 10. Facility Clearance FundamentalsContext• Natl focus on security – post 9/11/01• Vast Increase in need for clearances to dogovt work• Highly Valued• Hard to obtain; Easily lost• Distinction: Facility Clearance vs PersonalSecurity Clearance
  11. 11. Facility Clearance FundamentalsWhat is a Facility Clearance?• “FCL”: An administrative determination, from a natl securitystandpoint, that a facility is eligible for access to classified infoat or below clearance being granted.• “Facility”: Plant, laboratory, office, college, university, orcomml structure w/ associated warehouse, storage areas,utilities & components, which are related by function orlocation, other than a govt installation.• Levels: Confidential, Secret, or Top Secret• DoD Security Agreement (DD Form 441 & 441-1)
  12. 12. Facility Clearance FundamentalsWhat 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 orto a Prime or be a sub performing on a govt contract.• The bid or potential contract must involve access toclassified info.• “Classified Contract”, "Classified Acquisition”• Catch 22?
  13. 13. Facility Clearance FundamentalsPertinent 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), asamended by E.O. 10909 (26 FR 508, 1/20/1961).• NISP is implemented by:– Natl Industrial Security Pgm Ops Manual (“NISPOM”) (DOD5220.22-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. 14. Facility Clearance FundamentalsFCL 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 (• NISPOM (• Personal Security Clearances – Key Personnel, FSO• Fingerprint Cards• SF 328 – Certificate Re: Foreign Interests• E-Filing
  15. 15. Facility Clearance FundamentalsFCL 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 CommitteeMembers, all Board members• Summary of primary business / services provided• Email, fax, & address information - last 10 years.• Proof of US Citizenship of FSO
  16. 16. Facility Clearance FundamentalsIndustrial Security Program• NISPOM: Min security requirements for clearedcontractors• ISR: Guidance on implementing requirements• Storage vs. non-storage requirement.• Govt may require add’l safeguards. e.g., Special AccessPrgm -- add’l controls beyond those normally requiredwill be necessary.– special clearances & investigative requirements.
  17. 17. Facility Clearance FundamentalsClearance Process Culmination– DoD Security Agreement (DD Form 441 & 441-1)• Govt agrees to issue FCL & inform contractor re/security classification of info to which contractorwill have access.• Contractor agrees to abide by securityrequirements in the Natl Industrial Security PrgmOps Manual (“NISPOM”).– Kickoff Meeting
  18. 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 PlanFacility Clearance FundamentalsForeign Ownership Control & Influence
  19. 19. • FSO responsible for compliance– Training, Compliance Prgm• ISR Compl Reviews• Can’t use for profit• Duration– Indefinite, 30-day termination notice• Consequences of BreachFacility Clearance FundamentalsOngoing FCL Compliance
  20. 20. – Export Controls (ITAR, EAR, FAC)– Foreign Mergers & Acquisitions – CFIUSFacility Clearance FundamentalsRelated Issues
  21. 21. Facility Clearance FundamentalsConclusions• A Valuable Asset• Process Requires Planning & Effort• Requires Continued Vigilance
  22. 22. Thank You for attending.Q & APlease submit Questions here…..Facility Clearance Fundamentals
  23. 23. Facility Clearance FundamentalsJennifer Schaus & 1 – 2 0 2 – 3 6 5 – 0 5 9 8Anthony H. “Tony” AnikeeffWilliams Mullen PC7 0 3 – 7 6 0 – 5 2 0