How to Guide Your Employee During the Clearance Process

1. How to Guide Your Employee During the Clearance Process Brian Kaveney bkaveney@armstrongteasdale.com Phone: 1-800-243-5070 x7685

2. “But the SF 86 is just a form, right? I can provide more information later...” Bad Idea! • It all starts with a form • What is the cost of a mistake? • Damage to your reputation with your customers • Indelible mark to your reputation • One person, one comment on a form… • Lost profits

3. An Effective FSO saves time, money, and frustration • Anticipate issues to be more efficient in your job • Prevent Problems • Best Practice: • Have employee draft and revise completeandaccurateinformation tied to mitigating conditions and whole person concept to explainormitigate • Consider most efficient way to navigate the DoD CAF

6. Effective FSO’s Tools to Preempt Personnel Clearance Issues Provide SF 86 worksheet to employee as early as possible Encourage the use of the SF 86 Additional Comments Section Provide a sample Statement of Reasons Provide a sample Interrogatory Identify and apply relevant mitigating conditions Show Applicant link to DOHA cases

7. Sequestration and Security - Industry • Downturn and reduction in funding for future and existing contracts: • Result: Reduced personnel • Remaining employees receive more responsibility • Increased Security Violations and Classified Spills • Security will become more active: • More investigations and more computer sanitizations

8. Sequestration and Security – Government • DSS changed the PR process from 90 days to 30 days prior to the expiration date of the investigation • More changes in the coming months • Salary Creep – affects company profits • Downgrades and reductions • Furloughs • Reduced Funding: • Example: More Hearings by VTC rather than in person • Consequence: Less persuasive by VTC rather than in person?

9. Top Reasons for Rejection by DSS and OPM Lack of correct employment information No SSN for spouse or co-habitant Lack of complete and accurate information for relatives Missing Selective Service registration info. Lack of complete information concerning debts or bankruptcy Discrepancy with applicant’s place of birth and DoB Missing or Discrepancy in Reference Information Missing or Discrepancy in Employment Information

10. Better to disclose • Failure to disclose will trigger additional adjudicative guidelines • Example: Even though the employee thinks he will resolve the potential lien on his house, it is better to disclose • Avoids triggering additional adjudicative guidelines • The Truth is ALWAYS Best • If RESOLVED, inform the government, and it can be a non-issue.

11. Who are we protecting? Everyone associated with NCMS has a responsibility to the warfighter

12. Transition of DISCO to the Department of Defense Central Adjudicative Facility (DoD CAF) • Complete consolidation into a single organization: • The Defense Industrial Security Clearance Office (DISCO), • Army Central Clearance Facility, • Department of the Navy CAF, • Air Force CAF, • Joint Staff CAF, Washington Headquarters (WHS) CAF, and DOHA • Initial operational capability by the beginning of FY13 • Full operational capability by the start of FY14

13. DoD CAF Status • Total Pending Cases as of Spring of 2013 • 15,000 industry backlog • Personnel Security Adjudicative Function Consolidation for Greater Efficiency

14. What is the $ of a mistake? • Rework to an SF 86 from a missing SSN to a key security concern that could have been mitigated or explained: • Based on a blended avg. salary for an FSO and executive or key employee: • 4-8 man hours or $140.00 - $160.00 = $560.00 - $1,280.00 • Extra costs for the FSO, employee, and admin. costs • Employee must “redo” the questions section and the relative section and print out the new signature forms • FSO will then have to review the submission, load forms, and spend additional time in JPAS, etc. • Can pull individuals away from direct charge time (profit)

15. What is the $ of a mistake? Waste of government resources Increases government costs Create backlog in the process to the detriment of others

16. Given the current environment, how can an FSO be effective during the Adjudication Process Government’s Examination of the Applicant’s Life Weighs a Number of Variables Known as the “Whole Person Concept” Evaluates the Relevance of the Individual’s Conduct Considers the Nature, Extent and Seriousness of the Conduct Considers the Frequency and Recency of the Conduct Considers the Age and Maturity of the Individual at the Time

17. Consider Adjudicative Guidelines • DoD CAF Relies on 13 Adjudicative Guidelines when Determining Eligibility • Allegiance To The U.S. • Foreign Influence • Foreign Preference • Sexual Behavior • Personal Conduct • Financial Considerations

18. Adjudicative Guidelines cont. • Alcohol Consumption • Drug Involvement • Emotional, Mental, and Personality Disorders • Criminal Conduct • Handling Protected Information • Outside Activities • Misuse of Information Technology Systems

19. Reporting Requirements • Change in Personal Status • Marital status – married, divorced, separated • Cohabitation – living in a spouse-like relationship; intimate relationship, or engaged • Foreign Travel • Foreign Contacts • Security Violations • Suspicious Contacts

20. Reporting Requirements Adverse Information Arrests regardless of whether you were convicted or charges were dropped Financial difficulties including bankruptcy, garnishment or judgment against wages, foreclosures, short sales, voluntary repossessions Emotional or psychological problems Alcoholism or abuse of other legal drugs; use of illegal drugs Other involvement with the legal system; target of legal action such as being sued

21. Reporting Logistics • What do you Report? • Arrests • Financial Issues • Foreign Contacts • Foreign Military • Change in Marital Status • Foreign Travel • Cohabitation • Drug Involvement

22. Problems do not get better with age . . . Many individuals face problems with inter-personal relationships, depression, alcohol, family issues, or similar difficulties at some point in their lives The vast majority of those seeking professional help for their problems do not suffer damage to their career Rather, professional help often allows individuals to recognize problems and take an active step in resolving those problems EARLY INTERVENTION and thorough reporting are often the keys to early resolution

23. FSO Challenges Implementing proper and effective procedures Working in a FOCI environment Developing a robust and effective security program Ensuring key employees receive required/critical clearances to support the company Dealing with competing priorities Spearheading deadlines for clearances Serving as the link between employees and the clearance-granting authority

24. FSO’s Tools to Preempt Personnel Clearance Issues Provide SF 86 worksheet to employee as early as possible Encourage the use of the SF 86 Additional Comments Section Provide a sample Statement of Reasons Provide a sample Interrogatory Identify and apply relevant mitigating conditions Show Applicant link to DOHA cases

25. FSO: Saving Government Resources by making the government’s life easier • Tools to Assist the Government: • Provide ALL requested information to adjudicators • Use Additional Comments Section to assist OPM investigator, particularly where mitigation is compelling • Utilize attachments to provide a complete picture for the government = DoD CAF . . . DISCO, OPM, & DOHA • Example: Detailed information about Escaping through Iraq

26. SF 86

27. SF 86

28. SF 86 Additional comments Preventionopportunity OR TROUBLE

29. Additional Reasons for e-QIP Rejection Start date or current employer information incorrect Selective service number missing Status of debts—incomplete information on financial questions (e.g., names, addresses of creditors) missing Missing entries (or gaps) in employment, education, and/or residence Missing citizenship information for foreign-born family members

30. Additional Reasons for e-QIP Rejection Applicant verifying self-employment and/or employment periods Missing fingerprint cards and/or signed releases Discrepant information between e-QIP and fingerprint cards (e.g., date or place of birth) and Not providing SSN and/or POB information for adults currently residing with applicant (co-habitant)

31. Loss of Clearance: Main Causes • The Busy Executive= Inadvertent failure to disclose • The young, key Engineer = Non-Disclosure due to lack of attention to detail • Example: Financial Issue • Overseas Property = Foreign Influence issues • Could be dealt with before submission of SF 86 • Example: Close the bank account to prevent a specific allegation in a Statement of Reasons • Demonstrate the U.S. Citizen is firmly rooted in the U.S.

32. NISPOM

33. Complete and Accurate NISPOM ISL 2006-01 #5. (2-202) “The FSO or designee shall … review the application solely to determine its adequacy and to ensure that necessary information has not been omitted. The FSO or designee shall provide the employee with written notification that review of the information is for adequacy and completeness, information will be used for no other purpose within the company, and that the information provided by the employee is protected by [the Privacy Act]. The FSO or designee shall not share information from the employee’s SF 86 within the company and shall not use the information for any purpose other than determining the adequacy and completeness of the SF 86.”

34. Completing the ElectronicVersion of the SF 86 “The electronic version of the SF 86 shall be completed jointly by the employee and the FSO or an equivalent contractor employee(s) who has (have) been specifically designated by the contractor to review an employee’s SF 86. ” Section 2-202.

35. Proactive Measures for the FSO Explain the adjudicative guidelines to identify concerns Conduct a Prescreen interview Explain the investigation and adjudication process Use security education and awareness training program Encourage honesty and full disclosure

36. Proactive Measures for the FSO • Provide: • (1) Sample Statement of Reasons, • (2) Sample Interrogatories • (3) Opinion from an Administrative Judge denying a clearance, • (4) Opinion from an Administrative Judge denying a clearance, and

37. STATEMENT OF REASONS

38. STATEMENT OF REASONS Allegation A

39. STATEMENT OF REASONS Allegation B

40. STATEMENT OF REASONS Triggers the Criminal Conduct Guideline Result of the failure to disclose by the employee

41. How will the DOHA Judge view this?

42. DECISION OF JUDGE “Applicant has worked for government contractors and held a clearance for about 22 years. Her misconduct was not the product of immaturity or inexperience.”

43. DECISION OF JUDGE “She is very dedicated to her job and she performs it with dedication and skill. Unfortunately, she has demonstrated that she will engage in deception to protect her job.”

44. DECISION OF JUDGE “Applicant claimed that she omitted mention of her departure from XTON Systems in April of 2010 because she forgot about it. I find this explanation implausible and unconvincing.”

45. How DOHA Judges View “Failure-to-Disclose” Cases The only people who can prevent the failure to disclose are the FSO and the employee. Someone who has lied on his or her SF 86 should not hold a clearance.

47. USA TODAY Continued from Page 1B years in prison. Today, at 42, he is out of prison and working in a white-collar job in the defense industry. He remains on parole until 2006. As a convicted felon, he can’t vote in many states. But under federal law, he can and does hold a government-issued security clearance, a privilege that allows access to sensitive classified information off-limits to most Americans.

48. Where are we today?

50. COMMON PROBLEM: Inadvertent Failure to Disclose by Busy Executive • Raises Guideline E – Personal Conduct • A. In 2005, you failed to properly inform your Chairman & CEO that you had worked with a non-profit entity which created a potential conflict of interest for you and your work with your current employer at the time