FAR 4.4—Subpart 4.4

[Reserved]

General.

FAR 4.402 explains the governmentwide framework for protecting classified information when it is released to contractors, licensees, and grantees. It ties the FAR to the National Industrial Security Program (NISP), identifies the controlling executive orders, and points readers to the National Industrial Security Program Operating Manual (NISPOM) and related DoD guidance that implement the program. It also addresses special procedures for foreign classified contracts, the use of DD Form 254 to provide security classification guidance, and the requirement to identify contractor and subcontractor performance locations with CAGE codes (or agency location codes for Government facilities). In addition, it clarifies that contractor performance locations do not have to be separately registered in SAM solely because they appear on a DD Form 254. Finally, it notes that FAR Part 27 covers safeguarding classified information in patent applications and patents. In practice, this section is the roadmap for how contracting personnel and contractors handle classified work, who issues security guidance, and what identifiers and systems must be used to keep classified contract performance properly controlled and traceable.

Responsibilities of contracting officers.

FAR 4.403 assigns the contracting officer’s core security duties when a procurement may involve classified information. It covers the presolicitation review for possible access to classified information, the special steps required when another agency’s classified information may be involved, and the need to follow either the National Industrial Security Program (NISP) or the relevant agency’s security procedures. It also addresses the solicitation phase, including ensuring the classified acquisition is handled properly and inserting the required Security Requirements clause and any additional safeguards. Finally, it covers the award phase, where the contracting officer must inform contractors and subcontractors of the applicable classification markings and security requirements for documents, tasks, subcontracts, and components, including use of DD Form 254 for DoD and certain nondefense agencies with DoD industrial security agreements. In practice, this section is about making sure security requirements are identified early, documented correctly, and flowed down properly so classified work can be competed, awarded, and performed without security lapses or unauthorized disclosure.

Contract clause.

FAR 4.404 tells contracting officers when to include the Security Requirements clause, FAR 52.204-2, in solicitations and contracts, and when to use one of its alternates or an agency-specific substitute. The section covers four related topics: the basic rule for contracts that may require access to classified information, the special use of Alternate I for cost-reimbursement research and development contracts with educational institutions, the special use of Alternate II for construction or architect-engineer contracts where employee identification is needed for security reasons, and the exception for agencies not covered by the National Industrial Security Program (NISP) that have their own substantially similar clause and alternates. In practice, this section ensures the government puts the right security language in the contract so contractors understand access controls, identification requirements, and any special security obligations before performance begins. It also helps agencies align contract clauses with the type of work being procured and with their own security programs. For contractors, the clause signals that security compliance may affect staffing, access to facilities or information, and performance procedures. For contracting officers, the section is a clause-selection rule that must be applied carefully because the wrong version of the clause can create compliance gaps or conflict with agency security procedures.