Chapter 7

Table of Contents

CHAPTER 7

Subcontracting

Section 1. Prime Contractor Responsibilities

7-100. General.

This Chapter contains the requirements and responsibilities of a

prime contractor when disclosing classified information to a

subcontractor.

7-101. Responsibilities (Pre-Award).

Before a prime contractor may release, disclose classified

information to a subcontractor, or cause classified information to

be generated by a subcontractor, the following actions are

required:

a. Determine the Security Requirements of the Subcontract.

(1) Access to classified information will be required. This

is a "classified contract" within the meaning of this Manual. A

"security requirements clause" and a Contract Security

Classification Specification shall be incorporated in the

solicitation and in the subcontract (see the "security requirements

clause" in the prime contract). The subcontractor must possess an

appropriate FCL and safeguarding capability if possession of

classified information will be required.

(a) Access will not be required in the pre-award phase.

Prospective subcontractors are not required to possess a

FCL to receive or bid on the solicitation.

(b) Access will be required during the pre-award phase.

All prospective subcontractors must possess the

appropriate FCL and have safeguarding capability.

(2) Access to classified information will not be required.

This is not a "classified contract" within the meaning of this

Manual. If the prime contract contains requirements for release or

disclosure of certain information, even though, not classified,

such as unclassified sensitive information, the requirements shall

be incorporated in the solicitation and the subcontract.

b. Determine Clearance Status of Prospective Subcontractors.

(1) All prospective subcontractors have appropriate

clearance. This determination can be made if there is an existing

contractual relationship between the parties involving classified

information of the same or higher category, or by contacting the

CSA.

(2) Some prospective subcontractors do not have appropriate

clearances. The prime contractor shall request the CSA of each

prospective subcontractor to initiate appropriate clearance action.

7-102. Verification of Clearance and Safeguarding Capability.

a. The prime contractor shall verify the clearance status and

safeguarding capability from the CSA.

b. Verifications may be requested from the CSA by message,

telephone, or letter. Telephonic confirmation normally will be

provided immediately to telephone requests, and written

confirmation will be furnished within 5 working days regardless of

the mode of the request. Verifications shall remain valid for 3

calendar years unless superseded in writing by the CSA.

c. If a prospective subcontractor does not have the appropriate

FCL or safeguarding capability, the prime contractor shall request

the CSA of the subcontractor to initiate the necessary action.

Requests shall include, as a minimum, the full name, address and

telephone number of the requester; the full name, address, and

telephone number of a contact at the facility to be processed for

an FCL; the level of clearance and/or safeguarding capability

required; and full justification for the request. Requests for

safeguarding capability shall include a description, quantity,

end-item, and classification of the information related to the

proposed subcontract. Other factors necessary to assist the CSA in

determining whether the prospective subcontractor meets the

requirements of this Manual shall be identified, such as any

special accesses involved, e.g., Restricted Data.

d. Requests to process a prospective subcontractor for an FCL

must be based on a bona fide procurement need for the prospective

subcontractor to have access to, or possession of, classified

information. Requesting contractors shall allow sufficient lead

time in connection with the award of a classified subcontract to

enable an uncleared bidder to be processed for the necessary FCL.

When the FCL cannot be granted in sufficient time to qualify the

prospective subcontractor for participation in the current

procurement action, the CSA will continue the FCL processing action

to qualify the prospective subcontractor for future contract

consideration provided:

(1) The delay in processing the FCL was not caused by a lack

of cooperation on the part of the prospective subcontractor;

(2) Future classified negotiations may occur within 12

months; and

(3) There is reasonable likelihood the subcontractor may be

awarded a classified subcontract.

7-103. Security Classification Guidance.

Prime contractors shall ensure that a Contract Security

Classification Specification is incorporated in each classified

subcontract. When preparing classification guidance for a

subcontract, the prime contractor may extract pertinent information

from the Contract Security Classification Specification issued with

the prime contract; from security classification guides issued with

the prime contract; or from any security guides that provide

guidance for the classified information furnished to, or that will

be generated by, the subcontractor. The Contract Security

Classification Specification prepared by the prime contractor shall

be signed by a designated official of the contractor. In the

absence of exceptional circumstances, the classification

specification shall not contain any classified information. If

classified supplements are required as part of the Contract

Security Classification Specification, they shall be identified and

forwarded to the subcontractor by separate correspondence.

a. An original Contract Security Classification Specification

shall be included with each RFQ, RFP, IFB, or other solicitation to

ensure that the prospective subcontractor is aware of the security

requirements of the subcontract and can plan accordingly. An

original Contract Security Classification Specification shall also

be included in the subcontract awarded to the successful bidder.

b. A revised Contract Security Classification Specification shall

be issued as necessary during the lifetime of the subcontract when

the security requirements change.

7-104. Responsibilities (Performance).

Prime contractors shall review the security requirements during the

different stages of the subcontract and provide the subcontractor

with applicable changes in the security requirements. Requests for

public release by a subcontractor shall be forwarded through the

prime contractor to the GCA.

7-105. Responsibilities (Completion of the Subcontract).

Upon completion of the subcontract, the subcontractor may retain

classified material received or generated under the subcontract for

a 2-year period, provided the prime contractor or GCA does not

advise to the contrary. If retention is required beyond the 2-year

period, the subcontractor must request written retention authority

through the prime contractor to the GCA. If retention authority is

approved by the GCA, the prime contractor will issue a final

Contract Security Classification Specification, annotated to

provide the retention period and final disposition instructions.

7-106. Notification of Unsatisfactory Conditions.

The prime contractor will be notified if the CSA discovers

unsatisfactory security conditions in a subcontractor's facility.

When so notified, the prime contractor shall follow the

instructions received relative to what action, if any, should be

taken in order to safeguard classified material relating to the

subcontract.

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