Interim, limited and terminated facility clearances

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1. Interim determinations

The entity eligibility rules apply to all contractors with entity eligibility determinations, except for participation in the Department of Homeland Security’s Classified Critical Infrastructure Protection Program, which has its own section (32 CFR 117.9(a)).

Under the National Industrial Security Program Operating Manual (NISPOM), 32 CFR part 117, a facility clearance or other entity eligibility determination does not have to be final at the outset. The cognizant security agency (CSA) may make an interim determination, in its sole discretion (32 CFR 117.9(h)). An interim determination is temporary, pending completion of the full investigative requirements (32 CFR 117.9(h)).

If a contractor with an interim determination is unable or unwilling to comply with the rule and CSA guidance on obtaining a final determination, the CSA withdraws it (32 CFR 117.9(h)). The access limitations on temporary personnel eligibility, which the rule says were previously called interim, also apply to interim entity determinations (32 CFR 117.10(l)). The entity rule cross-refers to them (32 CFR 117.9(h)).

2. Excluding and temporarily excluding officials

If the CSA decides that certain key management personnel (KMP) can be excluded from access, the contractor follows the rule’s exclusion procedures (32 CFR 117.9(f)). After a changed condition, the senior management official (SMO) or other KMP may be temporarily excluded while their own personnel clearance is processed (32 CFR 117.9(g)). Four conditions apply.

The official must not be the facility security officer (FSO) or the insider threat program senior official (ITPSO), who may never be temporarily excluded (32 CFR 117.9(g)(1)). A cleared employee must always fill those positions. Another employee, cleared to the level of the entity determination, must be able to carry out the excluded official’s responsibilities during the exclusion (32 CFR 117.9(g)(2)). The CSA may give guidance on how long the exclusion may last (32 CFR 117.9(g)(3)). The governing board affirms and documents the exclusion and gives a copy to the CSA (32 CFR 117.9(g)(4)).

The rule gives model language for the board. One form states that, until the government reaches a final eligibility decision, the named official will not require or have access to any classified information disclosed to the entity. The second form applies while a determination at the SECRET or TOP SECRET level is pending, and bars the official from higher-level classified information.

3. Multiple facilities and parent companies

In a multiple facility organization, the home office must hold a determination at the same level as the highest determination held by any entity within the organization (32 CFR 117.9(i)). The CSA decides whether branch offices are eligible if they need access and meet all other requirements.

Where a parent-subsidiary relationship exists, the CSA processes the parent and the subsidiary separately (32 CFR 117.9(j)). If the CSA decides the parent must be processed, the parent needs a determination at the same or a higher level than the subsidiary (32 CFR 117.9(j)(1)). Collocated parents and subsidiaries, or several collocated cleared subsidiaries, may agree in writing to use common security services, with CSA approval (32 CFR 117.9(j)(2)).

4. Joint ventures and consultants

A joint venture may be granted eligibility if it meets the general requirements and three more (32 CFR 117.9(k)). It must be established as a legal business entity, such as a limited liability company, corporation or partnership (32 CFR 117.9(k)(1)). A joint venture created only by contract is not eligible. It must have been awarded a classified contract, or sponsored by a government contracting activity (GCA) or a prime contractor before a potential award it has bid for (32 CFR 117.9(k)(2)). And it must have its own employees appointed as security officials or KMP (32 CFR 117.9(k)(3)).

The CSA decides when self-employed consultants who need access should be considered for an entity determination of their own (32 CFR 117.9(l)).

5. Limited determinations without foreign ownership issues

A CSA may allow a GCA to request a limited determination for a single, narrowly defined contract, agreement or circumstance, specific to that GCA’s classified information (32 CFR 117.9(m)(1)). This differs from the limited determinations used where foreign ownership, control or influence is not mitigated or negated, which follow the foreign ownership section. The GCA sponsors the entity, and its request must describe a compelling need consistent with national security interests (32 CFR 117.9(m)(2)). It must also give the reasons for limiting the determination and the GCA’s formal acceptance of the associated risk.

The entity must otherwise meet all eligibility requirements (32 CFR 117.9(m)(3)). The access limits apply to all of its employees, whatever their citizenship (32 CFR 117.9(m)(4)). The CSA documents the scope and limits of each limited determination and verifies it only to the requesting GCA (32 CFR 117.9(m)(5) and 32 CFR 117.9(m)(6)). Where one entity holds several, each is verified separately to its own requestor. The CSA administratively terminates a limited determination when access is no longer needed (32 CFR 117.9(m)(7)).

6. Termination, revocation and invalidation

Once granted, a favorable determination remains in effect until it is terminated or revoked (32 CFR 117.9(n)). On termination or revocation, the contractor returns all classified material to the appropriate GCA or disposes of it as the CSA instructs. The contractor may request administrative termination. After coordinating with the GCAs, the CSA may also terminate it when the contractor no longer needs access (32 CFR 117.9(n)(1)). The CSA may revoke it if the contractor is unable or unwilling to protect classified information or to comply with the rule (32 CFR 117.9(n)(2)).

The CSA may also invalidate an existing determination (32 CFR 117.9(o)). While it is invalidated, the contractor may not bid on or be awarded new classified contracts or solicitations. It may continue work on existing classified contracts if the GCA agrees. How a company qualifies in the first place is covered in how a company qualifies for a facility clearance.

Key terms

Interim determination	A temporary determination pending full investigation.
Temporary exclusion	A board action excluding an official while that official’s clearance is processed.
Multiple facility organization	An entity with a home office and other cleared locations.
Limited determination	Eligibility confined to one contract, agreement or circumstance.
Invalidation	A status that bars new classified bids and awards.

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

Clearance status affects which work a company can take on. 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.