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On December 21, 2020, the Department of Defense (DoD) Office of the Undersecretary of Defense for Intelligence & Security published a Final Rule codifying the National Industrial Security Program Operating Manual (NISPOM) currently published as part of DoD Manual 5220.22-M in Title 34, Part 117 of the Code of Federal Regulations. The Final Rule became effective on February 24, 2021.
As many readers are likely aware, the NISPOM plays a key role in the National Industrial Security Program (NISP), the Government’s program for protecting classified information along with specific economic and technological data.
See E.O. 12829 (Jan. 6, 1993) (establishing the NISP and ordering the Secretary of Defense to issue and maintain the NISPOM). In practice, the NISPOM establishes requirements and procedures for the protection of classified information disclosed to or developed by contractors (in addition to similar information dis
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On December 21, 2020, the National Industrial Security Program Operating Manual (“NISPOM”) was published as a final rule in the
Federal Register. A revision to the NISPOM has been expected for a number of years, and is effective today, February 24, 2021. A number of changes were made to this iteration of the NISPOM, but most of the changes merely formalize current U.S. government policies that were not previously described in the manual. In any case, companies who currently possess, are in process for, or are seeking a facility security clearance should review how the NISPOM changes apply to their specific circumstances and goals going forward.
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2021 will present opportunities for the advanced nuclear and space exploration sectors, but companies should be cognizant of complex compliance standards.
TAKEAWAYS
The prior Administration’s January 12, 2021 Executive Order (EO) promoting advanced reactors and the use of nuclear technology for defense purposes and space exploration seeks to provide direction and initiative to other, ongoing federal efforts in these sectors. Given the bipartisan support for advanced nuclear technology and the inclusion of nuclear energy as a key solution in the Biden plan for a clean energy revolution, it is likely that the Biden Administration will continue advancing the initiatives set out in the EO.
The Department of Defense (DOD) is adding the National Industrial Security Program Operating Manual (NISPOM) to the Code of Federal Regulations (CFR). According to the final rule.
Highlights
Effective Feb. 24, 2021, the National Industrial Security Program Operating Manual (NISPOM) will be codified in regulation.
The rule implements the National Defense Authorization Act (NDAA) of 2019 provision allowing cleared companies operating under a Special Security Agreement to access proscribed information without a National Interest Determination.
The public has until Feb. 19, 2021, to comment on the final rule, and U.S. cleared entities have until Aug. 24, 2021, to comply with all applicable changes.
In a final rule effective Feb. 24, 2021, the U.S. Department of Defense (DoD) codified the National Industrial Security Program Operating Manual (NISPOM) in Title 32, Part 117 of the Code of Federal Regulations.