Changes Coming to 32 Code of Federal Regulation Part 117, NISPOM

The DoD has made changes to 32 CFR Part 117, the NISPOM Rule to extend the compliance date for reporting and pre-approval of unofficial foreign travel as prescribed in SEAD 3. Reporting of the foreign travel component is set to begin on August 24th, 2022.

 

Key Changes to 32 Code of Federal Regulation Part 117, NISPOM

  • Section 117.8(a): Cleared contractors must submit reports according to Security Executive Agent Directive (SEAD) 3 and DCSA guidance.

  • Section 117.15(e)(2): Adjustments on processes for accountability of top-secret information.

  • Section 117.15(d)(4): Allows for granting Underwriters Laboratories UL-2050 certification for intrusion detection systems by a nationally recognized test laboratory. This is in addition to the CSA-approved IDS.

  • Section 117.7(b)(2): Additional responsibilities for SMOs regarding their role in compliance have been added.

  • Section 117.15: Cleared contractors are now referred to 32 CFR Part 2001 for direction on requirements for protecting classified information. This is in addition to CSA approval and compliance with ICS 705.

  • Section 117.13(d)(5): Clarifies that when a contractor has completed their contract, they must return all government-provided information to the government's custody.

 

In total, 26 subsections across 12 categories were changed in 32 CFR Part 117.

 

It is important to familiarize yourself with the new changes and implement the changes that will apply to your business. Look for additional clarification provided in the Industrial Security Letters (ISLs) for the areas you are unsure about.

 

Answers to frequently asked questions about the key changes to 32 CFR Part 117 can be found here.

 

Updates to Reporting Requirements

One of the most notable changes is that Senior Management Personnel (SMO) will have increased involvement in security. As a result, more activities need to be reported to pass security checks.

 

Activities that require reporting include:

·         Living Status/ Arrangements i.e.: Marital contracts

·         Criminal Activity

·         Personal Finance and Business Interests

·         Behavior and Conduct

·         Foreign Travel – Unofficial

·         Foreign Contacts – Official and Unofficial

·         Foreign Affiliation

·         Treatment and Counseling

·         Psychological and Emotional Health

·         Media Contact

 

The primary focus of these changes is to limit foreign influence on domestic contracts and to prevent leaks to foreign outlets.

 

If you have any questions regarding what needs to be self-reported, your FSO is the first point of contact. The FSO will guide you on the steps to follow regarding self-reporting.

 

Steps Contractors Take to Prepare

Contractors should start by downloading the 32 CFR Part 117 Cross Reference Tool. It can be found here. Use it to learn how the sections familiar to you have mapped to the new rules.

 

Take the time to familiarize yourself and your employees with the new rule’s language. Pay close attention to the sections outlining key changes.

 

Upcoming Industrial Security Letters will address topics such as 32 CFR Part 117 Implementation. Make sure that you read through these letters in detail to get as much information as possible.

 

During the 6-month implementation period, update and enhance your practices and procedures where necessary. Ensure that everyone in your organization affected by these changes is made aware of what to expect in the coming months.

 

How Can GSEC LLC Help?

You can contact us to get help preparing for these changes. We will help you better understand the changes and what you need to do to prepare for their implementation.

 

By: Alex O’Reilly & Jessica Laracuente

 

Sources: https://www.dcsa.mil/About-Us/News/News-Display/Article/2516880/32-code-of-federal-regulation-part-117-nispom-is-now-in-effect-cleared-contract/

https://www.dcsa.mil/mc/ctp/NISPOM-Rule/

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