1. www.ispcert.com PERFORMING ON CLASSIFIED CONTRACTS

2. www.ispcert.com The Facility Security Clearance The FSO The Personnel Security Clearance Test CONTENTS What are an FSO’s Responsibilities? Who is responsible for requesting facility clearances? How are investigations conducted? These are questions that come to the minds of many who practice management of classified material. It is important for all who work on a classified contract understand the requirements and qualifications for doing so.

3. www.ispcert.com  FCL’S are related to a contract  The FCL is a result of the government’s determination that a company is eligible to have access to classified information or the award of a classified contract (NISPOM 2-100)  Sponsored by government or prime contract  Additionally, if the company is to possess or store classified material, the CSA will have to determine and approve the FCL and the storage level for that company. FACILITY SECURITY CLEARANCE

4. www.ispcert.com  This need for a clearance must be supported by a legitimate U.S. Government or foreign government requirement and the contact will be offered as having that need.  Basically, the Government will have classified work to assign to a competent defense contractor. As a result of the required work, the contractor will need to be eligible for a clearance. If the government requires a defense contractor to store and or work with classified material on site, then they will also be required to have a storage level assigned FACILITY SECURITY CLEARANCE

5. www.ispcert.com  Qualifications for FCL  Structured as an entity as under the laws of the United States, the District of Columbia or Puerto Rico and have a physical location in the United States or her territories.  A reputation of good and ethical business practices  Neither the company nor key managers are barred from participating in U.S. Government contracts  Must not fall under Foreign Ownership Control Or Influence FACILITY SECURITY CLEARANCE

6. www.ispcert.com  FCL Process  Government Contracting Authority approve, Cognitive Security Agency conducts evaluation  Company compiles list of Key Management Personnel  Assembles vital corporate documents  Prepares Department of Defense Security Agreement DD Form 441  Prepares FOCI Statement SF328 FACILITY SECURITY CLEARANCE

7. www.ispcert.com A critical piece to the sponsorship program is for the CSA to have a good understanding of the company and their mission. Information needed includes: articles of incorporation, stock records, corporate by-laws, minutes, 10k and tax documentation. The senior company officer, the FSO and other personnel as deemed necessary by the CSA will need a security clearance. The other officers and board members may be excluded from the security clearance process if they will not have influence over cleared contractor decisions. FACILITY SECURITY CLEARANCE

8. www.ispcert.com The SF 328 is used by the contractor and the CSA to determine whether or not and to what limit the cleared contractor falls under Foreign Ownership Control and Influence. As with determining the amount of control a company officer or board member has over classified contracts, the same holds true of foreign entities a company may partner with. FACILITY SECURITY CLEARANCE

9. www.ispcert.com  Contractor agrees to:  Implement and enforce the security controls  Verify that persons have need to know and clearance  The Government agrees to:  Indicate the appropriate level of classification  Agree not to over-classify  Notify the cleared contractor of any changes in the classification  Issue proper handling, storage and processing information GOVERNMENT CONTRACTOR AGREEMENT DD Form 441

10. www.ispcert.com Appointed to direct and implement security procedures designed to protect classified information from unauthorized disclosure  Identified in DoD 5220.22-M (NISPOM)  Security clearances  Accountability of classified information  Receipt of all transaction  Shipment  Storage  Authorized disclosure  Exports compliance  Visit control  Physical security  Audits and facility evaluations THE FSO

11. www.ispcert.com  Qualifications  Cleared at the same level as the facility clearance  U.S. Citizen THE FSO This FSO has a tremendous scope of responsibility and takes on the role as the provider of security and the link between the government contractor, the cognizant security agency (CSA) and the federal government.

12. www.ispcert.com  A security clearance is the administrative determination that an employee is eligible from a national security basis for a security clearance  The final clearance is the result of a request by the contractor, investigation conducted by the CSA and determination made by a trained adjudicator PERSONNEL SECURITY CLEARANCE

13. www.ispcert.com  The contractor and CSA have joint responsibilities  Contractor  Submits request and supporting documents  CSA  Determines the employee’s eligibility of access  Notifies the cleared contractor whether or not the access has been granted  Designates a database for the administrative record and accountability of the clearance status PERSONNEL SECURITY CLEARANCE

14. www.ispcert.com  CSA will ensure the proper security clearance background investigation is conducted  Single Scope Background Investigation (SSBI) conducted for access to:  TOP SECRET  Q  Secret Compartmented Information  National Agency Check with Local Agency Check and Credit Check (NACLC) conducted for access to:  SECRET  CONFIDENTIAL  L BACKGROUND INVESTIGATIONS

15. www.ispcert.com  Single Scope Background Investigation (SSBI) investigates information from  Educational institutions during the past 3 years  Residence during the past three years  Law enforcement records during the past 10 years  Financial records of the most recent seven years.  National Agency Check with Local Agency Check and Credit Check (NACLC)  Search of the Federal Bureau of Investigation’s database  Credit check – past seven years  Residence  employment  education  law enforcement records of all locations listed on the SF 86 during the past five years. BACKGROUND INVESTIGATIONS

16. www.ispcert.com The results of the investigation demonstrate whether or not the subject is stable, trustworthy, reliable, of excellent character, judgment, and discretion; and of unquestioned loyalty to the United States. The determination is based on 13 investigation criteria: 1.Allegiance to the United States 2.Foreign preference 3.Foreign influence 4.Sexual behavior 5.Personal conduct ADJUDICATION

17. www.ispcert.com 6.Financial considerations 7.Alcohol consumption 8.Drug involvement 9.Psychological conditions 10.Criminal conduct 11.Handling protected information 12.Outside activities 13.Use of Information Technology Systems ADJUDICATION

18. www.ispcert.com Subjects who fall under any of the above criteria will not automatically be denied a security clearance. Adjudicators will consider:  The nature, extent, and seriousness of the conduct  The circumstances surrounding the conduct, to include knowledgeable participation  The frequency and recency of the conduct  The individual’s age and maturity at the time of the conduct  The voluntariness of participation  The presence or absence of rehabilitation and other pertinent behavioral changes  The motivation for the conduct  The potential for pressure, coercion, exploitation, or duress  The likelihood of continuation or recurrence. CONSIDERATIONS OF CRITERIA

19. www.ispcert.com Subjects who fall under any of the above criteria will not automatically be denied a security clearance. There are situations where people have committed crimes, used drugs, sought professional counseling or other types of treatment. In some cases people who had abused alcohol attended rehabilitation, they were suffering emotional problems for a death or divorce, or the indicated incidences had transpired way back in their personal histories. When considering a person for a clearance, the adjudicator will assess each case. It is important for the applicant to fill out the security clearance request information accurately and not where provided the specific incident and all that had transpired as a result. The adjudicator will only be able to rely on the information provided in the investigation and the applicant’s notes. CONSIDERATIONS OF CRITERIA

20. www.ispcert.com It is also important to note that cleared personnel will need to continue their demonstration of suitability after the security clearance is determined. They will also have to notify their security offices anytime they or another cleared employee violate any of the criteria. At some point cleared employees will be reinvestigated according to their need of a security clearance and level. The incidents may call into question the issue of suitability. These self referrals will demonstrate trustworthiness and will help mitigate the incidents. If an investigator discovers the incident had occurred during the periods between investigations, the subject’s suitability may be called into question. CONSIDERATIONS OF CRITERIA

21. www.ispcert.com Click on the correct answers TEST

22. www.ispcert.com 1.Which of the following is a type of security clearance: A.Building ClearanceBuilding Clearance B.Ceiling ClearanceCeiling Clearance C.Annual ClearanceAnnual Clearance D.Facility ClearanceFacility Clearance 2.All of the following are criteria for evaluating suitability EXCEPT: A. Alcohol use Alcohol use B.Personal ConductPersonal Conduct C.Misuse of TechnologyMisuse of Technology D.AbstinenceAbstinence 3.Everyone who works in a cleared facility must have a clearance A.TrueTrue B.FalseFalse 4.Single Scope Background Investigations are conducted for: A.CONFIDENTIALCONFIDENTIAL B.LL C.SECRETSECRET D.QQ TEST-SELECT THE CORRECT ANSWER

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