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Yesterday, the Office of the Under Secretary of Defense for Intelligence & Security, Department of Defense (DoD) published a final rule codifying the National Industrial Security Program Operation Manual (NISPOM) (DoDM 5220.22) into 32 C.F.R. Part 117. For the most part, this action simply inserts the long-applicable NISPOM requirements into the CFR, but DoD has taken this opportunity to formalize two additional changes applicable to cleared contractors. First, the new regulation will incorporate mandatory reporting concerning any cleared personnel’s foreign contacts and foreign travel, a requirement initially established by Security Executive Agent Directive (SEAD) 3, “Reporting Requirements for Personnel with Access to Classified Information or Who Hold a Sensitive Position” (12 June 2017) for the purpose of more continuously monitoring activities that can affect an individual’s national security eligibility. Second, the final rule will implement Section 842 of the 2019 National Defense Authorization Act, which, effective October 1, 2020, removed the requirement that an agency issue a national interest determination (NID) before a foreign-owned entity holding a facility clearance by virtue of a Special Security Agreement may access “proscribed information” (e.g., Top Secret information) where its ultimate and intermediate foreign parents are located in a country within the U.S. national technology and industrial base as defined in 10 U.S.C. § 2500 ( currently Australia, Canada and the U.K.). Comments on the addition of the NISPOM to the CFR may be submitted through February 19, 2021, and the regulation formally becomes effective on February 24, 2021.

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Photo of Adelicia R. Cliffe Adelicia R. Cliffe

Adelicia Cliffe is a partner in the Washington, D.C. office, a member of the Steering Committee for the firm’s Government Contracts Group, and a member of the International Trade Group. Addie is also co-chair of the firm’s National Security practice. Addie has been…

Adelicia Cliffe is a partner in the Washington, D.C. office, a member of the Steering Committee for the firm’s Government Contracts Group, and a member of the International Trade Group. Addie is also co-chair of the firm’s National Security practice. Addie has been named as a nationally recognized practitioner in the government contracts field by Chambers USA.

Photo of Jonathan M. Baker Jonathan M. Baker

Jonathan M. Baker is a partner in Crowell & Moring’s Washington, D.C. office. He practices in the Government Contracts Group.

Jon advises clients on a wide array of government contracts legal issues, including both federal and state bid protests, prime-sub disputes, government contracts…

Jonathan M. Baker is a partner in Crowell & Moring’s Washington, D.C. office. He practices in the Government Contracts Group.

Jon advises clients on a wide array of government contracts legal issues, including both federal and state bid protests, prime-sub disputes, government contracts due diligence and transactions, regulatory compliance, and contract terminations. Jon’s practice has a notable emphasis on technology-related issues, including counseling clients in the areas of patent and data rights, responding to government challenges to technical data and computer software rights assertions, and litigating cases involving complex and cutting edge technologies. Jon also provides guidance on national security matters, such as National Industrial Security Program Operating Manual compliance and facility and security clearance matters. In addition, Jon has advised clients on local government contract negotiation, internal and government investigations regarding potential False Claims Act issues, and export violations. Jon is also actively involved in the firm’s pro bono program, having litigated prisoner neglect, parental rights termination, and landlord-tenant matters.

Photo of Stephanie Crawford Stephanie Crawford

Stephanie Crawford is a trusted counselor to a broad range of industries facing reorganizations, transactions, national security issues, and questions of supply chain management. Stephanie provides related mergers and acquisitions, counseling, litigation, international arbitration, and investigations services to clients in the aerospace and

Stephanie Crawford is a trusted counselor to a broad range of industries facing reorganizations, transactions, national security issues, and questions of supply chain management. Stephanie provides related mergers and acquisitions, counseling, litigation, international arbitration, and investigations services to clients in the aerospace and defense, communications, energy, information technology, and consumer products sectors.

Stephanie has substantial experience with both buy-side and sell-side transactions. She has led government contracts diligence for numerous private equity entities and defense contractors. She assists clients with navigating post-closing government requirements, including unique license transfers and approvals; novation and change of name regulations; and Defense Counterintelligence and Security Agency communications and foreign ownership, control, and influence (FOCI) mitigation.

Stephanie counsels clients on supply chain, sourcing, and national security regulations and requirements. Such counseling includes compliance with the Defense Production Act, including priority orders, ratings and associated regulations; the Public Readiness and Emergency Preparedness Act; and National Industrial Security Program Operating Manual (NISPOM) regulations. She is also known for her ability to solve immediate and business-threatening System for Award Management (SAM) and Defense Logistics Agency (DLA) CAGE Code problems.

Stephanie defends government contractors facing potential tort litigation with a nexus to their government contracts and facing supply chain and national security-related investigations, litigation, and arbitrations.

Stephanie’s pro bono practice focuses on a broad range of veterans’ issues, including disability ratings and discharge upgrades