DoD Final Rule Amends DFARS, Imposes Cybersecurity Reporting Obligations For Unclassified Controlled Technical Information | Practical Law

DoD Final Rule Amends DFARS, Imposes Cybersecurity Reporting Obligations For Unclassified Controlled Technical Information | Practical Law

The Department of Defense (DoD) has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) by adding requirements for safeguarding unclassified controlled technical information as well as reporting obligations for cyber incidents.

DoD Final Rule Amends DFARS, Imposes Cybersecurity Reporting Obligations For Unclassified Controlled Technical Information

by Practical Law Commercial
Published on 21 Nov 2013USA (National/Federal)
The Department of Defense (DoD) has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) by adding requirements for safeguarding unclassified controlled technical information as well as reporting obligations for cyber incidents.
On November 18, 2013, the Department of Defense (DoD) issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to address:
  • Requirements for safeguarding unclassified controlled technical information resident on or transiting through a contractor's unclassified information systems (see Safeguarding Requirements).
  • Reporting obligations for the compromise of unclassified controlled technical information (see Cyber Incident and Compromise Reporting).
Controlled technical information includes all technical data and computer software with military or space application that is subject to DoD access controls. The new rule, effective immediately, narrows the scope of a 2011 rule by reducing the categories of information covered. (76 Fed. Reg. 38089 (June 29, 2011).)

Safeguarding Requirements

The new rule requires contractors to provide safeguards against unauthorized disclosure or security violations on any systems that store or transmit unclassified controlled technical information by:
  • Implementing information systems security programs with, at minimum, the specified National Institute of Standards and Technology (NIST) Special Publication security controls. If NIST controls are not used, the contractor must provide a written explanation to the DoD and apply other equivalent security measures.
  • Applying additional information systems security requirements if the contractor reasonably determines that they are needed based on assessed risk or vulnerability.

Cyber Incident and Compromise Reporting

The new rule also requires contractors to report cyber incidents that result in an unauthorized data release, manipulation or other compromise of unclassified controlled technical information that resides or is transiting through a contractor's or subcontractor's unclassified information system.
The report must be made to the DoD within 72 hours of the discovery and must include as much of the following information as possible:
  • The Data Universal Number System (DUNS).
  • The contract numbers affected.
  • The Facility CAGE code, if the incident occurred at a location other than the prime contractor's location.
  • A point of contact, if different from the point of contact recorded in the System for Award Management (SAM) website.
  • A point of contact for the contracting officer.
  • The contract's clearance level.
  • The name of subcontractor and CAGE code, if applicable.
  • The DoD programs, platforms or systems involved.
  • The location or locations of the compromise.
  • The date the incident was discovered.
  • The type of compromise (for example, unauthorized access or inadvertent release).
  • A description of the technical information compromised.
Contractors must also support the DoD in assessing the damage by:
  • Conducting further review of unclassified networks for evidence of compromise, including for example, identifying compromised computers and servers, specific data and user accounts.
  • Reviewing the compromised data to identify specific unclassified controlled technical information associated with DoD programs.
  • Preserving and protecting images of known and affected information systems and relevant monitoring or packet capture data for at least 90 days after the incident.
The DoD may also conduct its own damage assessment, in which case the contractor must comply with the DoD's requests to share files and images.
Parties contracting with the DoD should be familiar with the circumstances that can trigger the new incident reporting requirements in this rule.