What Is The NISPOM Rule, And Where Did It Come From?

The National Industrial Security Program Operating Manual (NISPOM) Rule, also known as CFR (Code of Federal Regulations) Part 117 is a regulation that governs the protection of classified information within the United States. The rule was created to provide a comprehensive set of federal regulations and procedures for government contractors and their employees who have access to classified information.

Since its establishment, the National Industrial Security Program Operating Manual (NISPOM) has paved the way for the National Industrial Security Program (NISP).

On the 24th of February 2021, NIPOSM metamorphosed into a federal rule known as the “NIPOSM rule” (the 32 Code of Federal Regulations Part 117). The National Industrial Security Program Operating Manual (NISPOM) rule serves as an updated version, covering various topics related to information security, such as personnel security policies, physical security measures, operational policies, and other specific activities.

It is designed to ensure that all government contractors abide by the same set of security regulations and gave a mandatory six-month compliance deadline for many new contractors entering the industrial security world.

By following the guidelines outlined in the National Industrial Security Program Operating Manual (NISPOM) rule, organizations can protect their systems and data from unauthorized access, comply with government regulations and industry standards, and maintain the security of classified information.

This article will explore what the National Industrial Security Program Operating Manual (NISPOM) Rule is, what it contains, and what its purpose is.

What Does NIPOSM Rule Contain? 

The National Industrial Security Program Operating Manual (NISPOM) Rule contains a range of security topics related to the protection of classified information, they include:

General Provisions And Requirements

NISPOM Rule includes general requirements that all cleared organizations must adhere to maintain their security clearance. This includes establishing and maintaining their facility’s Security Program, personnel security policies, physical security measures, preventative counterintelligence programs, and more.

Security Clearance

The manual sets out what is required to obtain a security clearance and how long it must be maintained. It also outlines what constitutes a disqualifying condition for eligibility for a security clearance.

Personnel Security Clearances

The NISPOM rules regulate who needs to be cleared, what type of background investigation should be conducted, and what measures should take to protect classified information.

Physical Security

The manual outlines what is necessary to ensure that facilities and equipment used for handling classified information are safeguarded from unauthorized access or destruction. It also discusses what measures should be put in place for high-security sites that store highly sensitive materials.

Special Access Programs

The NISPOM rule details what is necessary for special access programs, what constitutes a security violation, and what the consequences are for any breach of security policies.

Operational Policies

The manual covers what procedures must be put in place by contractors to ensure that classified information is handled with the utmost care and safeguarded from unauthorized disclosure or destruction. It also discusses what steps must be taken to protect information from cyber threats.

Foreign Ownership and Control (FOCI)

The NISPOM rule outlines what is necessary to ensure that foreign-owned entities do not have access to classified information or the ability to influence decisions related to handling sensitive material.

Facility Clearance

The manual sets out what is necessary for a facility to receive clearance for access to classified information and what steps must be taken to ensure by the facility security officer to ensure the facility operates in accordance with security protocols.

Information System Security

The manual describes what measures must be taken to protect computer systems from unauthorized access, malicious software, and other cyber threats.

Subcontracting

The manual outlines what rules must be followed when subcontracting classified information and what safeguards should be implemented to ensure that the subcontractor is meeting their obligations.

Closure And Transition Management

Also, the manual describes what measures must be taken when a facility closes or contracts are completed to ensure that all classified material is properly handled, stored, and destroyed by the regulations.

Special Requirements Section

The NISPOM rule includes what additional requirements must be met if the contractor is dealing with sensitive nuclear weapons-related information. This section includes what must be done to protect classified information from intentional or unintentional disclosure, what procedures should be followed for the destruction and disposal of nuclear materials, what measures should be taken to respond to a nuclear incident, and more.

Security Executive Agent Directive (SEAD)

NISPOM rule also incorporated the Security Executive Agent Directive (SEAD 3) to expand reporting requirements to all cleared industries. SEAD 3 requires reporting by all contractor-cleared personnel who have been granted eligibility to receive classified information.

Furthermore, SEAD3 ensures that all covered individuals incur a special and continuing security obligation and are aware of the risks associated with foreign intelligence operations or potential terrorist activities directed against them within the United States and abroad.

These people also have a duty to be aware of and abstain from actions and conduct that could jeopardize their continued eligibility for national security benefits. Therefore, the NISPOM rule recognizes the significance of expanding security reports and activities across various industries.

A Brief History Of The National Industrial Security Program Operating Manual (NISPOM) Rule

The NISPOM Rule outlines several regulations related to the protection of classified information disclosed to or developed by contractors, licensees, and grantees.

These include rules regarding personnel security, physical security, special access programs, and other protocols that must be followed when handling sensitive materials. The manual also outlines what constitutes a security violation and the consequences of any security policy breach.

Following the Cold War era, the NISPOM replaced the DoD policy and became a cornerstone of U.S. information security policy. Any prime contractor holding DoD contracts and access to relevant information must abide by these regulations, reporting requirements, and all other policies imposed by companies or federal agencies.

Originally, the National Industrial Security Program Operating Manual (NISPOM) was established by Executive Order 12829 in 1993 through the Office of the Secretary of Defence (OSD). This manual ensures that the cleared U.S. defense industry protects the classified proscribed information in their possession while working on programs, contracts, bids, or research and development efforts.

Also, to keep up with technological changes, new threats, and ever-evolving security protocols, the document went through a change in February 2006 and a subsequent conforming change in May 2017.

Also, the National Industrial Security Program (NISP) created the National Industrial Security Program Operating Manual (NISPOM). NISP aims to promote standardization and coordination among the DoD, its contractors, and other government agencies that share classified information.

Purpose And Importance Of NIPSOM

The NISPOM Rule is an important regulation because it provides comprehensive guidance on the National Industrial Security Program (NISP). Here are some of the most important aspects addressed in the manual:

• Security requirements for personnel with access to classified information.
• Protocols for handling classified information and materials.
• Security measures for use of computers, networks, and other digital devices.
• Reporting requirements for security violations or incidents.
• Consequences for noncompliance with the NISPOM Rule or other security regulations.
• The NISPOM Rule is also important because it helps to ensure that the defense industrial base remains a secure environment.
• The manual also outlines the responsibilities of contractors, licensees, and grantees to ensure the proper protection of classified information. This includes personnel security, physical security, special access programs, and other protocols. The NISPOM Rule helps the DoD ensure that contractors are following proper security procedures while working on government projects or possessing classified materials.
• Furthermore, the NISPOM Rule establishes security guidelines to prevent potential espionage or other malicious activities related to classified materials.
• Ultimately, the NISPOM Rule is essential for safeguarding national security interests and protecting sensitive information from falling into the wrong hands.

Conclusion

The National Industrial Security Program Operating Manual (NISPOM) Rule is an essential regulation for all DoD contractors and personnel tasked with protecting sensitive information. Also, the NIPOSM has been upgraded to a federal rule which introduced slight changes in the regulation.

The modifications are made to better align with the country’s policy for the protection of classified national security information. Some of them address legislative or regulatory changes, while others improve the security of classified information that contractors access or possess.

The NISPOM Rule also provides comprehensive guidance for the National Industrial Security Program (NISP), its functions, and what procedures must be followed to ensure that classified information is kept secure. Therefore, this manual is an important resource for all personnel in the security industry.

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