Security Facility Clearance and Understanding the Regulations

Security facility clearance compliance decisions and internal practices are important aspects of being able to perform government contracts. When companies are facing judicial scrutiny or adverse legal actions, it is important to understand the laws and regulations that regulate facility clearances and individuals complying with those laws.

As a government contractor, you want to make sure that you provide correct and truthful information when submitting a security facility clearance application.  If you are currently in possession of a facility clearance, you also want to make sure that your stay in compliance. Failure to do either may impact your ability to perform lucrative government contracts. 

Courts Don’t  Have Much Choice

Courts must follow the adjudicative guidelines and there is not much room for interpretation. However, a court will consider mitigating circumstances when there are allegations of security facility clearance violations. See  Court Decisions Regarding Facility Security Clearances.

The adjudicative guidelines for facility clearance and security clearance  list potentially disqualifying conditions and mitigating conditions, which are to be used as appropriate in evaluating your eligibility for access to classified information.

Examples of issues that can impact your ability to get a facility clearance or individual security clearance include:

Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.

• If applying for a facility clearance or individual security clearance, an individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.

Purpose of  Government Security Clearance Regulations

The underlying facility clearance regulations establish procedures for obtaining a security clearance and for safeguarding Secret and Confidential National Security Information and Restricted Data received or developed in conjunction with activities licensed, certified or regulated by the Commission.

Facility clearance regulations typically apply to licensees, certificate holders and others who may require access to classified National Security Information and/or Restricted Data and/or Formerly Restricted Data (FRD) that is used, processed, stored, reproduced, transmitted, transported, or handled in connection with a license or certificate or an application for a license or certificate, or other activities as the Commission may determine.

Your Obligations

Quoted by the Defense Security Service (DSS)

• By signing the DoD Security Agreement (DD Form 441), contractors agree to comply with the provisions of the “National Industrial Security Program Operating Manual” (NISPOM). Defense Security Service (DSS) oversees contractor compliance with the NISPOM on behalf of the Department of Defense and 23 other Federal agencies.
• DSS expects that every contractor will comply with the terms of the NISPOM, and DSS will hold every contractor accountable for compliance. Consequences of non-compliance depend upon the severity of the security breach

When it comes to security facility clearances, DSS considers deliberate or willful violations of NISPOM security requirements to be a matter of grave concern. Violations may result not only in the invalidation or revocation of the facility security clearance, but may also lead to the suspension or revocation of the responsible individual’s personnel security clearance.

• Compelling business needs do not justify such behavior.
• You want to make sure that your company has the proper information when submitting a facility clearance information and are up to date on all related laws.

If you need professional legal guidance with applying for, or complying with security government facility clearance regulations, call an attorney at 1-866-601-5518.