The document provides an overview of security and facility clearances. It introduces Anthony Anikeeff from Williams Mullen PC and Jennifer Schaus from Jennifer Schaus & Associates, who will discuss facility clearances. A facility clearance is an administrative determination that a facility is eligible for access to classified information. Obtaining a facility clearance requires sponsorship, an application package, security agreements, and ongoing compliance. The process also examines any potential foreign ownership, control or influence that could impact a facility's eligibility. Maintaining a facility clearance requires ongoing vigilance to security requirements.

1. Security & Facility Clearances
October 14 - 2014

2. Anthony H. “Tony” Anikeeff
Williams Mullen PC
7 0 3 – 7 6 0 – 5 2 0 6
aanikeeff@williamsmullen.com
www.williamsmullen.com
Jennifer Schaus
Jennifer Schaus & Associates
2 0 2 – 3 6 5 – 0 5 9 8
jschau@JenniferSchaus.com
www.JenniferSchaus.com

3. Security & Facility Clearances
– Introductions:
• George Mason University, PTAP
• Anthony “Tony” Anikeeff, Williams Mullen PC
• Jennifer Schaus – JS & Associates

4. Security & Facility Clearances
Williams Mullen PC
Government 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

5. Security & Facility Clearances
• Jennifer Schaus & Associates
• Washington, DC Based
• GSA Schedules, Federal Sales, Capture Mngt, Proposal
Writing & other Gov Con Support Services
• Gov Con Events

6. Security & Facility Clearances

7. Security & Facility Clearances
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

8. Security & Facility Clearances
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

9. Security & Facility Clearances
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)

10. Security & Facility Clearances
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?

11. Security & Facility Clearances
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

12. Security & Facility Clearances
FCL Process-Preliminaries
• Need a Requirement – E.g., DD 254, FA R 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

13. Security & Facility Clearances
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

14. Security & Facility Clearances
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.

15. Security & Facility Clearances
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

16. Security & Facility Clearances
Foreign Ownership Control & Influence
– 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

17. Security & Facility Clearances
Ongoing FCL Compliance
• FSO responsible for compliance
– Training, Compliance Prgm
• ISR Compl Reviews
• Can’t use for profit
• Duration
– Indefinite, 30-day termination notice
• Consequences of Breach

18. Security & Facility Clearances
Related Issues
– Export Controls (ITAR, EAR, FAC)
– Foreign Mergers & Acquisitions – CFIUS

19. Security & Facility Clearances
Conclusions
• A Valuable Asset
• Process Requires Planning & Effort
• Requires Continued Vigilance

20. Security & Facility Clearances
Thank YOU for attending!
Q & A
Please submit Questions here…..

21. Anthony H. “Tony” Anikeeff
Williams Mullen PC
7 0 3 – 7 6 0 – 5 2 0 6
aanikeeff@williamsmullen.com
www.williamsmullen.com
Jennifer Schaus
Jennifer Schaus & Associates
2 0 2 – 3 6 5 – 0 5 9 8
jschau@JenniferSchaus.com
www.JenniferSchaus.com