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On January 29, 2024, the Department of Commerce released a proposed rule:  Taking Additional Steps To Address the National Emergency With Respect to Significant Malicious Cyber-Enabled Activities, which solicits comments regarding a proposed  new set of regulations that would introduce significant new requirements for U.S.-based Infrastructure as a Service (IaaS) providers.  The proposed rule implements requirements from the January 2021 Executive Order Taking Additional Steps To Address the National Emergency With Respect to Significant Malicious Cyber-Enabled Activities and part of the October 2023 Executive Order Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence.  If Commerce implements the regulations as proposed, IaaS providers would be required to create a Customer Identification Program (CIP), ensure any foreign resellers maintain a CIP, track all customer identities, verify the identities of foreign customers, and report certain transactions implicating large AI models that could be used for malicious cyber-enabled activities.  The Department is soliciting comments on all aspects of the proposed rule by April 29, 2024.Continue Reading Who I(aa)S Your Foreign Customer? Department of Commerce Proposes Foreign Customer Identification Requirements For U.S. IaaS Providers

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The Department of Defense (DoD) recently published a memorandum clarifying what it means for a cloud service provider (CSP) to be Federal Risk and Authorization Management Program (FedRAMP) Moderate baseline “equivalent” and meet incident reporting requirements under Defense Federal Acquisition Regulation Supplement (DFARS) Clause 252.204-7012, Safeguarding Covered Defense Information and Cyber Incident Reporting (DFARS 7012). The memorandum states, in order to be considered FedRAMP equivalent going forward, CSPs must (1) be FedRAMP Moderate/High-Authorized, or (2) secure a third-party assessment confirming their compliance with all FedRAMP Moderate baseline security controls.Continue Reading No Longer Cloudy: DoD Issues New Guidance on FedRAMP Moderate Equivalency Cloud Security Requirements

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CMMC

This special edition covers DoD’s proposed rule for the Cybersecurity Maturity Model Certification Program, and is hosted by Peter Eyre, Michael Gruden, and Nkechi Kanu. Crowell & Moring’s “Fastest 5 Minutes” is a biweekly podcast that provides a brief summary of significant government contracts legal and regulatory developments that no government contracts lawyer or

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On December 26, 2023, the Department of Defense (DoD) released the highly anticipated proposed rule for the Cybersecurity Maturity Model Certification Program (CMMC), a cybersecurity regulatory program that will likely impact most of the government contractor community. Every contractor who handles sensitive data such as Controlled Unclassified Information (CUI) or Federal Contract Information (FCI) during DoD contract performance will be covered by this regulation. While the CMMC program builds upon the security requirements included in Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.204-7012, CMMC will bring greater scrutiny to contractors’ cybersecurity compliance and potentially greater consequences for failure to comply in the era of the Department of Justice’s Civil Cyber Fraud Initiative and False Claims Act litigation. If finalized as proposed, the rule will significantly impact the CMMC regime, notably by requiring senior company officials to complete an affirmation for every CMMC level self-assessed or certified, thus increasing legal compliance risks.Continue Reading DoD’s New Year Resolution: A Cybersecurity Maturity Model Certification Program (CMMC) Proposed Rule

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On November 9, 2023, the National Institute of Standards and Technology (“NIST”) released the Final Public Draft (“FPD”) of Special Publication (“SP”) 800-171 Revision (“Rev.”) 3, “Protecting Controlled Unclassified Information in Nonfederal Systems and Organizations” and the Initial Public Draft of NIST SP 800-171A Rev 3, “Assessing Security Requirements for Controlled Unclassified Information.”  The FPD of SP 800-171 Rev. 3 condenses several control requirements from the initial public draft while adding new requirements under existing controls.  The initial draft of SP 800-171A now aligns with SP 800-171 Rev. 3 and includes more detailed assessment procedures than its predecessor.  Changes in both documents forecast the evolving compliance requirements for organizations required to safeguard Controlled Unclassified Information (“CUI”).Continue Reading The Holidays Come Early: NIST Unwraps Final Draft Revision 3 to NIST SP 800-171

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This week’s episode covers two proposed rules implementing Executive Order 14028, “Improving the Nation’s Cybersecurity,” the Department of Labor’s announcement of a change in the minimum wage rates for federal contractors, and the White House directive that federal agencies incorporate interim Social Cost of Greenhouse Gases estimates into the procurement function, and is hosted by

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Almost a decade after the Department of Defense developed rules requiring mandatory reporting of cyber incidents, on October 3, 2023, the Federal Acquisition Regulation (FAR) Council released new proposed rules—one addressing cyber incident reporting and another addressing cybersecurity requirements for contractors maintaining a Federal Information System (FIS).  When enacted, these rules could implement new security measures and incident reporting requirements via FAR clauses for contractors across the entire federal government.  The “Cyber Threat and Incident Reporting and Information Sharing” proposed rule focuses on increasing the sharing of information about cyber threats between government and private industry, while the “Standardizing Cybersecurity Requirements for Unclassified Federal Information Systems” proposed rule focuses on implementing policies, procedures, and requirements for contractors maintaining an FIS.  These rules implement Biden Administration initiatives pursuant to Executive Order (“EO”) 14028, “Improving the Nation’s Cybersecurity” issued in May 2021. Continue Reading FAR Council’s Cyber Harvest: New Incident Reporting and Federal Information System Requirements Await Government Contractors

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This week’s episode covers two notable False Claims Act settlements and the White House National Cybersecurity Strategy Implementation Plan, and is hosted by Peter Eyre and Yuan Zhou. Crowell & Moring’s “Fastest 5 Minutes” is a biweekly podcast that provides a brief summary of significant government contracts legal and regulatory developments that no government contracts

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On June 21, 2023, the Department of Homeland Security (DHS) issued a final rule amending the Homeland Security Acquisition Regulation (HSAR) by updating an existing clause (HSAR 3052.204-71) and adding two new contract clauses (HSAR 3052.204-72 and 3052.204-73) to address safeguarding of Controlled Unclassified Information (CUI).  The final rule is effective July 21, 2023.

The new clauses aim to improve privacy and security measures around CUI by introducing: (1) general CUI handling requirements; (2) authority to operate (ATO) requirements for federal information systems; (3) incident reporting requirements and activities; and (4) sanitization of government related files and information. These new clauses move DHS away from the use of DHS-defined sensitive information and toward the government-wide CUI model. Continue Reading Homeland Cybersecurity: DHS Overhauls Its CUI Program, Releases New Contract Clauses

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On June 9, 2023, the Office of Management and Budget (OMB) released M-23-16, Update to Memorandum M-22-18, which alters key deadlines and clarifies how agencies and software developers can comply with M-22-18.  The original memorandum, published in September 2022, required all federal agencies and their software developers to comply with the National Institute of Standards and Technology (NIST) Secure Software Development Framework (SSDF), NIST SP 800-218, and the NIST Software Supply Chain Security Guidance (collectively, NIST Guidance) whenever third-party software is used on government information systems or otherwise affects government information. Continue Reading Softening the Blow: OMB Extends Software Supply Chain Security Deadline and Clarifies Scope