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B-332817 1 (2021-01-22)

handle is hein.gao/gaobaecjs0001 and id is 1 raw text is: GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 B-332817 January 22, 2021 Chair Ranking Member Committee on Armed Services United States Senate The Honorable Adam Smith Chairman The Honorable Mike Rogers Ranking Member Committee on Armed Services House of Representatives Subject: Department of Defense: National Industrial Security Program Operating Manual (NISPOM) Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Defense (DOD) entitled National Industrial Security Program Operating Manual (NISPOM) (RIN: 0790-AK85). We received the rule on December 11, 2020. It was published in the Federal Register as a final rule with request for comment on December 21, 2020. 85 Fed. Reg. 83300. The effective date of the rule is February 24, 2021. According to DOD, the final rule codifies the National Industrial Security Program (NISP) Operating Manual (NISPOM) in regulation. DOD stated NISPOM establishes requirements for the protection of classified information disclosed to or developed by contractors, licensees, grantees, or certificate holders (hereinafter referred to as contractors) to prevent unauthorized disclosure. In addition to adding NISPOM to the Code of Federal Regulations, DOD further stated the final rule incorporates the requirements of Security Executive Agent Directive (SEAD) 3, Reporting Requirements for Personnel with Access to Classified Information or Who Hold a Sensitive Position. According to DOD, SEAD 3 requires reporting by all contractor- cleared personnel who have been granted eligibility for access to classified information. DOD also stated the final rule provides for a single, nationwide implementation plan which will, with this rule, include SEAD 3 reporting by all contractor-cleared personnel to report specific activities that may adversely impact their continued national security eligibility, such as reporting of foreign travel and foreign contacts. DOD stated the final rule requires NISP Cognizant Security Agencies to conduct an analysis of such reported activities to determine whether they pose a potential threat to national security and take appropriate action. Finally, DOD stated the final rule also implements the provisions of section 842 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Pub. L. No. 115-232, div. A, title VIII, subtitle E, § 842, 132 Stat. 1636, 1878 (Aug. 13, 2018), which removes the requirement for a covered National Technology and Industrial Base (NTIB) entity operating under a special security agreement

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