16-R-3502_ATTACHMENT_D_FCL_DD254.docx

N32205-16-R-3502 ATTACHMENT D

The below information is a brief summary of Facility Clearance requirements. Please visit DSS’s website for full details. The DD254 specific to this solicitation follows this summary.

FCLs are issued and administered by the Defense Security Service (DSS) under the provisions of DoD 5220.22-M National Industrial Security Program Operating Manual (NISPOM). Compliance with the NISPOM is required to obtain and maintain applicable FCL and related personnel clearances (PCL) under this contract.

The Contractor is required to have a facility clearance at the Secret level with the capability to store classified information up to the SECRET level to include a GSA approved Class 6 document safe that has an approved electronic combination locking device and approved shredder capable of destroying documents classified up to SECRET in accordance with DoD 5220.22-M National Industrial Security Program Operating Manual (NISPOM). The Master, Chief Mate, and any additional officer (deck or engineering) shall have a completed investigation comparable to at least a National Agency Check and adjudication indicating eligibility for access to SECRET. It is the Owner's responsibility to submit requests for security clearances in the proper format and in a timely manner prior to assignment to the program based on Defense Security Service (DSS) guidance. Both Personnel and Facility Clearances must be in place prior to the start of the first option period and be maintained throughout the life of the Contract. If a Facility Clearance is not obtained prior to the start of the first option period, the option may not be declared. See DD-254, "Contract Security Classification Specification," Attachment D, for other security requirements

The entity to be cleared should thoroughly familiarize themselves with FCL requirements, the FCL application and approval process, and FCL sustainment before submitting a proposal in response to the RFP.

Summary information derived from the DSS Facility Clearance Branch web site (http://www.dss.mil/isp/fac_clear/fac_clear.html ) and the NISPOM that may impact the DSS approval of FCL requests is paraphrased below. The DSS web site, DSS Facility Clearance branch offices and the NISPOM should be consulted directly for the exact requirements. In case of conflict between the below information and that published by DSS, the DSS requirements shall take precedence. DSS office locations may be found on the DSS web site (http://www.dss.mil/isp/dss_oper_loc.html ) and in Appendix A of the NISPOM.

FCL Eligibility. Chapter 2 Section 1 of the NISPOM describes FCL eligibility requirements of an organization. Generally, the company and its key managers must:

· Need access to the classified information in connection with a legitimate U.S. Government requirement;

· Be organized and existing under the laws of any of the 50 states, the District of Columbia, Puerto Rico, and be located in the United States or its territorial areas;

· Must not be barred from participating in U.S. Government contracts;

· Not be under foreign ownership or controlling interests (FOCI) to such a degree that the granting of the FCL would be inconsistent with the national interest. Additional information pertaining to FOCI can be found on the DSS web site (http://www.dss.mil/isp/foci/foci_info.html ) and below.

PCL Eligibility. Chapter 2 Section 2 of the NISPOM describes PCL eligibility requirements for employees requiring access to classified information. The contractor shall limit requests for PCLs to the minimal number of employees necessary for operational efficiency, consistent with contractual obligations and other requirements of the NISPOM. With extremely limited exceptions, only U.S. citizens are eligible for a security clearance. Every effort shall be made to ensure that non-U.S. citizens are not employed in duties that may require access to classified information.

FOCI. Chapter 2 Section 3 of the NISPOM contains specific details and DoD policy related to foreign ownership or controlling interests. Paragraph 2-300 a. states, “A U.S. company is considered under FOCI whenever a foreign interest has the power, direct or indirect, whether or not exercised, and whether or not exercisable through the ownership of the U.S. company's securities, by contractual arrangements or other means, to direct or decide matters affecting the management or operations of that company in a manner which may result in unauthorized access to classified information or may adversely affect the performance of classified contracts.” A U.S. company determined to be under FOCI may be found ineligible for an FCL. DSS considers the below factors relating to the company, the foreign interest, and the government of the foreign interest, as appropriate when determining FOCI and subsequent eligibility for FCL:

· Record of economic and government espionage against U.S. targets.

· Record of enforcement and/or engagement in unauthorized technology transfer.

· The type and sensitivity of the information that shall be accessed.

· The source, nature and extent of FOCI, including whether foreign interests hold a majority or substantial minority position in the company, taking into consideration the immediate, intermediate, and ultimate parent companies. A minority position is deemed substantial if it consists of greater than 5 percent of the ownership interests or greater than 10 percent of the voting interest.

· Record of compliance with pertinent U.S. laws, regulations and contracts.

· The nature of any bilateral and multilateral security and information exchange agreements that may pertain.

· Ownership or control, in whole or in part, by a foreign government.