Facility Clearance Processing

1. Facility Clearance Processing Chad E. Stoker Chief, Facility Clearance Division Defense Industrial Security Clearance Office (DISCO) (614) 827-1535

2. Overview • National Industrial Security Program (NISP) • Authority & Responsibilities • NISP Policy Rules and Regulations • Industrial Security • DSS • Mission • What we do; how we do it; who we serve • The Facility Clearance • What it is • The Clearance Process

5. FCL Checklist FCL, FOCI, & PCL FAQs Sample Sponsorship Letter Links

6. Acquisition Channel CLASSIFIED

7. NISP Policy = NSC CSA’s DoD NRC DOE CIA CSO’s NRC DOE CIA DSS GCA’s

8. It Starts with a Facility Clearance . . . . SECRET

9. FIVE ESSENTIAL ELEMENTS OF FCL PROCESS • Sponsorship • Business Structure/Organization • Security Agreement • Foreign Ownership, Control, Interest (FOCI) • Key Management Personnel

10. SPONSORSHIP • From GCA or Cleared Contractor • To DISCO (Facility Clearance Branch) • Storage Required??? GCA

11. Why do we clear a Facility? Department of Defense Contract Security Classification Specification DD FORM 254 DD Form 254, Dec 90

12. MFOs & Nonposessing Divisions • ISL 03L-1 says: “DISCO will no longer process new FCLs for division or branch offices that do not require possession of classified material for contract performance, unless there is a sufficient contractual or critical operational need.”

13. What About Existing Non-Possessing Divisions/Branches? • The ISL says DSS has been contacting currently cleared non-possessing division/branch offices …[and] has proposed administrative termination of those facility clearances. • Exceptions: >200 PCLs or a contractual requirement for a local FCLC.

14. Services Companies (1) • Example: Janitorial Service • Do not clear for convenience • Runs contrary to the Regulations • Poor Security Practice

15. Services Companies (2) • NISPOM: NISPOM 2-102(a): “contractor must need access to the classified information in connection with a legitimate U.S. Government or foreign requirement” NISPOM 7-102(d): “Requests to process a prospective subcontractor for an FCL must be based on a bona fide procurement need for the prospective subcontractor to have access to, or possession of, classified information.”

16. Services Companies (3) • Personnel Security Reg (For GCAs): DoD 5200.2-R, Personnel Security Regulation, 3-601(a): “DoD Components shall not request, and shall not direct or permit their contractors to request, security clearances to permit access to areas when access to classified information is not required in the normal course of duties or which should be precluded by appropriate security measures.”

17. Services Companies (4) • Executive Order (For GCAs): 12968 2.1(b)(1): “Eligibility for access to classified information shall not be requested or granted solely to permit entry to, or ease of movement within, controlled areas when the employee has no need for access and access to classified information may reasonably be prevented . . .

18. Services Companies (5) 12968 2.1(b)(1): “ . . . Where circumstances indicate employees may be inadvertently exposed to classified information in the course of their duties, agencies are authorized to grant or deny, in their discretion, facility access approvals to such employees based on an appropriate level of investigation as determined by each agency.”

19. Services Companies (6) • Poor Security Practice: • Clearing the Services company facilitates the shirking of reasonable security responsibilities to protect for need-to-know. • Conceivably, the prospective cleared cleaning company’s personnel could have access to classified information across a broad scope of classified programs, without there being a genuine duty related need-to-know.

20. One Person Companies (1) • Self-incorporated consultants • ISL 03L-1: • Cleared contractors may process self-incorporated consultants for a PCL • Consultant and members of his/her immediate family are the sole owners • In such cases a FCL is not required

21. Facility Structure Corporation Partnership Sole Proprietorship

22. Witness That: CONTRACT Section II-Inspection Section III Modification Section IV Termination Section V Prior Sec Agreements Section VI Sec.Costs Section I-Security Controls Security Agreement Department of Defense Security Agreement • A six part document • U.S. Govt. & Company • Voluntary Participation DD Form 254

23. Foreign Ownership, Control and Influence (FOCI)

24. Key Management PersonnelCleared in Connection with FCL Chairman of Board President FSO

25. Facility Security Officer • Daily operation of the security program.

26. Key Management PersonnelListed but Excluded* Directors Sr. VP Secretary Treasurer

27. Clearance Verification Activity (CVA) CLEARANCEvsSTORAGE phone = (888) 282-7682 fax = (614) 827-1544 or : www.dss.mil CONFIDENTIAL SECRET

28. Summary • National Industrial Security Program (NISP) • Authority & Responsibilities • NISP Policy Rules and Regulations • Industrial Security • DSS • Mission • What we do; how we do it; who we serve • The Facility Clearance • What it is • The Clearance Process

29. QUESTIONS?