How a company qualifies for a facility clearance

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1. Two findings before any access

The National Industrial Security Program Operating Manual (NISPOM), 32 CFR part 117, controls how a company becomes eligible for access to classified information. Before any entity eligibility determination is granted, the responsible cognizant security agency (CSA) must find two things (32 CFR 117.9(a)(1)). The entity must be eligible for access to meet a legitimate U.S. Government or foreign government need (32 CFR 117.9(a)(1)(i)). And access must be consistent with national security interests (32 CFR 117.9(a)(1)(ii)).

A facility clearance (FCL) is one type of favorable entity eligibility determination used by some CSAs (32 CFR 117.3). It is an administrative determination that, from a security viewpoint, the entity is eligible for access to classified information of a certain level and all lower levels. The CSA gives guidance on processing these determinations (32 CFR 117.9(a)(2)).

2. Basic rules on scope

Entity eligibility is separate from the determination of a classified information safeguarding capability (32 CFR 117.9(a)(3)). Neither the contractor nor its employees may access classified information until the CSA has made the entity determination (32 CFR 117.9(a)(4)). A prime contractor needs a favorable determination even where all access will be limited to its subcontractors, and it must be at the same or a higher level than theirs (32 CFR 117.9(a)(5)).

A contractor is eligible to store classified material for a legitimate requirement if it has both a favorable determination and a safeguarding capability approved by the CSA (32 CFR 117.9(a)(6)). A determination is valid for access at the same or a lower classification level (32 CFR 117.9(a)(7)). Each CSA keeps a record of the determinations it makes (32 CFR 117.9(a)(8)). Contractors keep the original CSA designated forms for the duration of the determination, following CSA guidance (32 CFR 117.9(p)).

3. No advertising and no self-application

A contractor may not use its favorable determination for advertising or promotional purposes (32 CFR 117.9(a)(9)). It may still advertise employee positions that require a personnel clearance. A contractor or prospective contractor cannot apply for its own determination (32 CFR 117.9(a)(10)).

Instead, a government contracting activity (GCA) or a currently cleared contractor may sponsor the entity. Sponsorship can happen at any point in the contract or agreement life cycle at which the entity needs access to participate, including the solicitation or competition phase. Once an entity holds an appropriate, final determination, another CSA does not duplicate the process (32 CFR 117.9(b)). If a CSA cannot acknowledge another CSA’s determination, the entity may be subject to duplicate processing under 32 CFR part 2004.

4. The eligibility requirements

To obtain or keep a determination, the entity must need access in connection with a legitimate government or foreign government requirement, with access consistent with national security interests as the CSA determines (32 CFR 117.9(c)(1)). It must be organized and existing under the laws of the United States, a State, the District of Columbia or an organized U.S. territory (32 CFR 117.9(c)(2)(i)). The territories named are Guam, the Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands.

An entity chartered under the laws of an American Indian or Alaska Native tribe may also qualify (32 CFR 117.9(c)(2)(ii)). The tribe must be formally acknowledged by the Assistant Secretary for Indian Affairs at the Department of the Interior. The entity must exist under a tribal statute, code or legislative resolution, and submit its formation documents for the CSA to confirm that it is tribally chartered.

The entity must be located in the United States or its territorial areas (32 CFR 117.9(c)(3)). It must have a record of integrity and lawful conduct in its business dealings (32 CFR 117.9(c)(4)). Its senior management official (SMO), facility security officer (FSO) and insider threat program senior official (ITPSO) must have and keep eligibility for access and must not be excluded from government contracts (32 CFR 117.9(c)(5)).

The entity must not be under foreign ownership, control or influence (FOCI) to a degree that would make a favorable determination inconsistent with the national interest, in the CSA’s judgment (32 CFR 117.9(c)(6)). It must keep enough authorized and cleared employees to manage and implement the rule (32 CFR 117.9(c)(7)). It must not pose an unacceptable risk to national security, and it must meet all access requirements set by the CSA or the relevant law, regulation or government-wide policy (32 CFR 117.9(c)(8) and 32 CFR 117.9(c)(9)).

5. What the entity does during processing

The CSA assesses eligibility based on the entity’s business structure (32 CFR 117.9(d)). At a minimum, the entity provides the documentation the CSA requests within its timelines (32 CFR 117.9(d)(1)(i)). It has and identifies the SMO, and appoints U.S. citizen employees as the FSO and the ITPSO (32 CFR 117.9(d)(1)(ii) to 32 CFR 117.9(d)(1)(iv)). It submits requests for personnel security investigations for the SMO, FSO, ITPSO and other key management personnel the CSA identifies (32 CFR 117.9(d)(1)(v)).

If the entity is under FOCI and proposes a special security agreement as its mitigation method, and the GCA requires access to proscribed information, the CSA must consider additional measures from the FOCI section (32 CFR 117.9(d)(2)).

6. Employees cleared alongside the entity

Contractors may designate employees who need access during the negotiation of a contract or the preparation of a bid or quotation for a prime contract or subcontract (32 CFR 117.9(e)(1)). Those employees are processed for personnel clearance eligibility at the same time as the entity. The entity determination does not depend on their clearances, as long as none of them is the SMO, FSO or ITPSO (32 CFR 117.9(e)(2)). Even so, they get no access until both determinations are favorable. Interim, limited and terminated determinations are covered in interim, limited and terminated facility clearances.

Key terms

Entity eligibility determination	A CSA finding that an entity may access classified information at a set level.
FCL	A facility clearance, one form of entity eligibility determination.
Sponsorship	The request by a GCA or cleared contractor that starts the process.
Safeguarding capability	A separate approval needed to store classified material.
Reciprocity	The rule that one CSA does not repeat another CSA’s determination.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Teaming on cleared work depends on the clearance status of each partner. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.