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Legal Alert
New Rules for Cleared Contractors Starting Nov. 30
November 29, 2016
Earlier this year, the Defense Security Service (DSS) issued new rules for all government contractors that hold
facility security clearances. Several of the new rules, which relate to “inside threats,” take effect Wednesday,
Nov. 30, 2016.
The changes are found in the National Industrial Security Program Operating Manual (NISPOM), and include
the following requirements:
A written “insider threat” program plan
Formal appointment of a senior official to serve as the Insider Threat Program Senior Official
(ITPSO)
Annual certification of self-inspection, including analysis of inside-threat vulnerability
Continuation of the requirement to report relevant and credible information regarding cleared
employees
A system or process to identify patterns of negligence or carelessness in handling classified
information
Insider-threat training for employees
User activity monitoring on classified information systems
Contractors who regularly work with U.S. intelligence agencies may already have implemented some or all of
these procedures. But all cleared contractors should use the Nov. 30 deadline as a benchmark requiring a
thorough review of their policies and procedures by their facility security officer (FSO) and legal counsel.
Resource Attorneys
Christian B. Nagel
T: +1 703 712 5470
cnagel@mcguirewoods.com
J. Patrick Rowan
T: +1 202 857 1758
prowan@mcguirewoods.com
Ronald L. Fouse
T: +1 202 857 1719
rfouse@mcguirewoods.com
George J. Terwilliger III
T: +1 202 857 2473
gterwilliger@mcguirewoods.com
Todd R. Steggerda
T: +1 202 857 2477
New Rules for Cleared Contractors Starting Nov. 30 https://www.mcguirewoods.com/Client-Resources/Alerts/2016/11/...
1 of 2 12/6/2016 3:49 PM
tsteggerda@mcguirewoods.com
David G. Dargatis
T: +1 703 712 5080
ddargatis@mcguirewoods.com
Edwin O. Childs
T: +1 202 857 1723
echilds@mcguirewoods.com
James J. Holt
T: +1 703 712 5465
jholt@mcguirewoods.com
The McGuireWoods website provides information of general interest to the public. The website does not offer legal advice about specific
situations or problems. You should consult a McGuireWoods lawyer if you have legal issues requiring attention. Nothing on this site
creates an express or implied contract. McGuireWoods does not intend to create an attorney-client relationship by inviting you to contact
us. Unless and until we and you agree that we will represent you, we will not have any duties to you, including any duty to keep what you
send us confidential or any duty to protect your interests. This means that nothing you send us will be kept confidential, unless we
mutually agree that we will keep it confidential. Past legal successes described on this website are not indicators of future results. The
outcome of particular legal matters is dependent upon the facts and law applicable to the matters.
New Rules for Cleared Contractors Starting Nov. 30 https://www.mcguirewoods.com/Client-Resources/Alerts/2016/11/...
2 of 2 12/6/2016 3:49 PM

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New Rules for Cleared Contractors Starting Nov

  • 1. Legal Alert New Rules for Cleared Contractors Starting Nov. 30 November 29, 2016 Earlier this year, the Defense Security Service (DSS) issued new rules for all government contractors that hold facility security clearances. Several of the new rules, which relate to “inside threats,” take effect Wednesday, Nov. 30, 2016. The changes are found in the National Industrial Security Program Operating Manual (NISPOM), and include the following requirements: A written “insider threat” program plan Formal appointment of a senior official to serve as the Insider Threat Program Senior Official (ITPSO) Annual certification of self-inspection, including analysis of inside-threat vulnerability Continuation of the requirement to report relevant and credible information regarding cleared employees A system or process to identify patterns of negligence or carelessness in handling classified information Insider-threat training for employees User activity monitoring on classified information systems Contractors who regularly work with U.S. intelligence agencies may already have implemented some or all of these procedures. But all cleared contractors should use the Nov. 30 deadline as a benchmark requiring a thorough review of their policies and procedures by their facility security officer (FSO) and legal counsel. Resource Attorneys Christian B. Nagel T: +1 703 712 5470 cnagel@mcguirewoods.com J. Patrick Rowan T: +1 202 857 1758 prowan@mcguirewoods.com Ronald L. Fouse T: +1 202 857 1719 rfouse@mcguirewoods.com George J. Terwilliger III T: +1 202 857 2473 gterwilliger@mcguirewoods.com Todd R. Steggerda T: +1 202 857 2477 New Rules for Cleared Contractors Starting Nov. 30 https://www.mcguirewoods.com/Client-Resources/Alerts/2016/11/... 1 of 2 12/6/2016 3:49 PM
  • 2. tsteggerda@mcguirewoods.com David G. Dargatis T: +1 703 712 5080 ddargatis@mcguirewoods.com Edwin O. Childs T: +1 202 857 1723 echilds@mcguirewoods.com James J. Holt T: +1 703 712 5465 jholt@mcguirewoods.com The McGuireWoods website provides information of general interest to the public. The website does not offer legal advice about specific situations or problems. You should consult a McGuireWoods lawyer if you have legal issues requiring attention. Nothing on this site creates an express or implied contract. McGuireWoods does not intend to create an attorney-client relationship by inviting you to contact us. Unless and until we and you agree that we will represent you, we will not have any duties to you, including any duty to keep what you send us confidential or any duty to protect your interests. This means that nothing you send us will be kept confidential, unless we mutually agree that we will keep it confidential. Past legal successes described on this website are not indicators of future results. The outcome of particular legal matters is dependent upon the facts and law applicable to the matters. New Rules for Cleared Contractors Starting Nov. 30 https://www.mcguirewoods.com/Client-Resources/Alerts/2016/11/... 2 of 2 12/6/2016 3:49 PM