National Policy on Reciprocity of Facilities and Guidelines for Implementation of Reciprocity

DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 148

RIN 0790-AG55

National Policy on Reciprocity of Facilities and Guidelines for

Implementation of Reciprocity

AGENCY: Department of Defense.

ACTION: Interim final rule.

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SUMMARY: This rule is published to make physical facilities available

for reciprocal use in the storage of classified information. Once a

facility has been certified as suitable for classified use by one

organization, it may also be used by another for like purposes. No

impact on the public is foreseen.

DATES: This rule is effective September 16, 1997. Comments must be

received by March 31, 1998.

ADDRESSES: Forward comments to the Security Policy Board Staff, 1215

Jefferson Davis Highway, Suite 1101, Arlington, VA 22202.

FOR FURTHER INFORMATION CONTACT:

Mr. T. Thompson, 703-602-9969.

SUPPLEMENTARY INFORMATION:

Executive Order 12866, Regulatory Planning and Review

It has been determined that this interim rule (32 CFR part 148) is

not a significant regulatory action. The rule does not:

(1) Have an annual effect to the economy of $100 million or more or

adversely affect in a material way the economy; a section of the

economy; productivity; competition; jobs the environment; public health

or safety; or State, local, or tribal governments or communities;

(2) Create a serious inconsistency or otherwise interfere with an

action taken or planned by another Agency;

(3) Materially alter the budgetary impact of entitlements, grants,

user fees, or loan programs, or the rights and obligations of

recipients thereof; or

(4) Raise novel legal or policy issues arising out of legal

mandates, the President's priorities, or the principles set forth in

this Executive Order.

Public Law 96-354, Regulatory Flexibility Act (5 U.S.C. 601)

It has been certified that this rule is not subject to the

Regulatory Flexibility Act (5 U.S.C. 601) because it would not, if

promulgated, have a significant economic impact on a substantial number

of small entities. This part will streamline personnel security

clearance procedures and make the process more efficient.

Public Law 96-511, Paperwork Reduction Act (44 U.S.C. Chapter 35)

It has been certified that this part does not impose any reporting

or recordkeeping requirements under the Paperwork Reduction Act of

1995.

List of Subjects in 32 CFR Part 148

Classified information, Investigations, Security measures.

Accordingly, Title 32 of the Code of Federal Regulations, Chapter

I, subchapter C is amended to add part 148 to read as follows:

PART 148--NATIONAL POLICY AND IMPLEMENTATION OF RECIPROCITY OF

FACILITIES

Subpart A--National Policy on Reciprocity of Use and Inspections of

Facilities

148.1 Interagency reciprocal acceptance.

148.2 Classified programs.

148.3 Security review.

148.4 Policy documentation.

148.5 Identification of the security policy board.

148.6 Agency review.

Subpart B--Guidelines for the Implementation and Oversight of the

Policy on Reciprocity of Use and Inspections of Facilities

148.10 General.

148.11 Policy.

148.12 Definitions.

148.13 Responsibilities.

148.14 Procedures.

Authority: E.O. 12968 (60 FR 40245, 3 CFR 1995 Comp., p. 391.)

Subpart A--National Policy on Reciprocity of Use and Inspections of

Facilities

Sec. 148.1 Intergency reciprocal acceptance .

Interagency reciprocal acceptance of security policies and

procedures for approving, accrediting, and maintaining the secure

posture of shared facilities will reduce aggregate costs, promote

interoperability of agency security systems, preserve vitality of the

U.S. industrial base, and advance national security objectives.

Sec. 148.2 Classified programs.

Once a facility is authorized, approved, certified, or accredited,

all U.S. Government organizations desiring to conduct classified

programs at the facility at the same security level shall accept the

authorization, approval, certification, or accreditation without

change, enhancements, or upgrades. Executive Order, Safeguarding

Directives, National Industrial Security Program Operating Manual

(NISPOM), the NISPOM Supplement, the Director of Central Intelligence

Directives, interagency agreements, successor documents, or other

mutually agreed upon methods shall be the basis for such acceptance.

Sec. 148.3 Security review.

After initial security authorization, approval, certification, or

accreditation, subsequent security reviews shall normally be conducted

no more frequently than annually.

Additionally, such reviews shall be aperiodic or random, and be

based upon risk management principles. Security reviews may be

conducted ``for cause'', to follow up on previous findings, or to

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accomplish close-out actions. Visits may be made to a facility to

conduct security support actions, administrative inquiries, program

reviews, and approvals as deemed appropriate by the cognizant security

authority or agency.

Sec. 148.4 Policy documentation.

Agency heads shall ensure that any policy documents their agency

issues setting out facilities security policies and procedures

incorporate the policy set out herein, and that such policies are

reasonable, effective, efficient, and enable and promote interagency

reciprocity.

Sec. 148.5 Idenfification of the security policy board.

Agencies which authorize, approve, certify, or accredit facilities

shall provide to the Security Policy Board Staff a points of contact

list to include names and telephone numbers of personnel to be

contacted for verification of authorized, approved, certified, or

accredited facility status. The Security Policy Board Staff will

publish a comprehensive directory of points of contact.

Sec. 148.6 Agency review.

Agencies will continue to review and assess the potential value

added to the process of co-use of facilities by development of

electronic data retrieval across government. As this review continues,

agencies creating or modifying facilities databases will do so in a

manner which facilitates community data sharing, interest of national

defense or foreign policy.

Subpart B--Guidelines for the Implementation and Oversight of the

Policy on Reciprocity of use and Inspections of Facilities

Sec. 148.10 General.

(a) Redundant, overlapping, and duplicative policies and practices

that govern the co-use of facilities for classified purposes have

resulted in excessive protection and unnecessary expenditure of funds.

Lack of reciprocity has also impeded achievement of national security

objectives and adversely affected economic and technological interest.

(b) Interagency reciprocal acceptance of security policies and

procedures for approving, accrediting, and maintaining the secure

posture of shared facilities will reduce the aggregate costs, promote

interoperability of agency security systems, preserve the vitality of

the U.S. industrial base, and advance national security objectives.

(c) Agency heads, or their designee, are encouraged to periodically

issue written affirmations in support of the policies and procedures

prescribed herein and in the Security Policy Board (SPB) policy,

entitled ``Reciprocity of Use and Inspections of Facilities.''

(d) The policies and procedures prescribed herein shall be

applicable to all agencies. This document does not supersede the

authority of the Secretary of Defense under Executive Order 12829 (58

FR 3479, 3 CFR 1993 Comp., p. 570); the Secretary of Energy or the

Chairman of the Nuclear Regulatory Commission under the Atomic Energy

Act of 1954, as amended; the Secretary of State under the Omnibus

Diplomatic Security and Anti-Terrorism Act of 1986; the Secretaries of

the military departments and military department installation

Commanders under the Internal Security Act of 1950; the Director of

Central Intelligence under the National Security Act of 1947, as

amended, or Executive Order 12333; the Director of the Information

Security Oversight Office under Executive Order 12829 or Executive

Order 12958 (60 FR 19825, 3 CFR 1995 Comp., p. 333); or substantially

similar authority instruments assigned to any other agency head.

Sec. 148.11 Policy.

(a) Agency heads, or their designee, shall ensure that security

policies and procedures for which they are responsible are reasonable,

effective, and efficient, and that those policies and procedures enable

and promote interagency reciprocity.

(b) To the extent reasonable and practical, and consistent with US

law, Presidential decree, and bilateral and international obligations

of the United States, the security requirements, restrictions, and

safeguards applicable to industry shall be equivalent to those

applicable within the Executive Branch of government.

(c) Once a facility is authorized approved, certified, or

accredited, all government organizations desiring to conduct classified

programs at the facility at the same security level shall accept the

authorization, approval, certification, or accreditation without

change, enhancements, or upgrades.

Sec. 148.12 Definitions.

Agency. Any ``executive agency,'' as defined in 5 U.S.C. 105; any

``Military department'' as defined in 5 U.S.C. 102; and any other

entity within the Executive Branch that comes into possession of

classified information.

Classified Information. All information that requires protection

under Executive Order 12958, or any of its antecedent orders, and the

Atomic Energy Act of 1954, as amended.

Cognizant Security Agency (CSA). Those agencies that have been

authorized by Executive Order 12829 to establish an industrial security

program for the purpose of safeguarding classified information

disclosed or released to industry.

Cognizant Security Office (CSO). The office or offices delegated by

the head of a CSA to administer industrial security in a contractor's

facility on behalf of the CSA.

Facility. An activity of a government agency or cleared contractor

authorized by appropriate authority to conduct classified operations or

to perform classified work.

Industry. Contractors, licensees, grantees, and certificate holders

obligated by contract or other written agreement to protect classified

information under the National Industrial Security Program.

National Security. The national defense and foreign relations of

the United States.

Senior Agency Official. Those officials, pursuant to Executive

Order 12958, designated by the agency head who are assigned the

responsibility to direct and administer the agency's information

security program.

Sec. 148.13 Responsibilities.

(a) Each Senior Agency Official shall ensure that adequate

reciprocity provisions are incorporated within his or her regulatory

issuances that prescribe agency safeguards for protecting classified

information.

(b) Each Senior Agency Official shall develop, implement, and

oversee a program that ensures agency personnel adhere to the policies

and procedures prescribed herein and the reciprocity provisions of the

National Industrial Security Program Operating Manual (NISPOM).

(c) Each Senior Agency Official must ensure that implementation

encourages reporting of instances of non-compliance, without fear of

reprisal, and each reported instance is aggressively acted upon.

(d) The Director, Information Security Oversight Office (ISOO),

consistent with his assigned responsibilities under Executive Order

12829, serves as the central point of contact within Government to

consider and take action on complaints and suggestions from industry

concerning alleged violations of the reciprocity provisions of the

NISPOM.

(e) The Director, Security Policy Board Staff (D/SPBS) or his/her

designee, shall serve as the central point

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of contact within Government to receive from Federal Government

employees alleged violations of the reciprocity provisions prescribed

herein and the policy ``Reciprocity of Use and Inspections of

Facilities'' of the SPB.

Sec. 148.14 Procedures.

(a) Agencies that authorize, approve, certify, or accredit

facilities shall provide to the SPB Staff a points of contact list to

include names and telephone numbers of personnel to be contacted for

verification of the status of facilities. The SPB Staff will publish a

comprehensive directory of agency points of contact.

(b) After initial security authorization, approval, certification,

or accreditation, subsequent reviews shall normally be conducted no

more frequently than annually. Additionally, such reviews shall be

aperiodic or random, and be based upon risk-management principles.

Security Reviews may be conducted ``for cause'', to follow up on

previous findings, or to accomplish close-out actions.

(c) The procedures employed to maximize interagency reciprocity

shall be based primarily upon existing organizational reporting

channels. These channels should be used to address alleged departures

from established reciprocity requirements and should resolve all,

including the most egregious instances of non-compliance.

(d) Two complementary mechanisms are hereby established to augment

existing organizational channels: (1) An accessible and responsive

venue for reporting and resolving complaints/reported instances of non-

compliance. Government and industry reporting channels shall be as

follows:

(1) Governnment. (A) Agency employees are encouraged to bring

suspected departures from applicable reciprocity requirements to the

attention of the appropriate security authority in accordance with

established agency procedures.

(B) Should the matter remain unresolved, the complainant (employee,

Security Officer, Special Security Officer, or similar official) is

encouraged to report the matter formally to the Senior Agency Official

for resolution.

(C) Should the Senior Agency Official response be determined

inadequate by the complainant, the matter should be reported formally

to the Director, Security Policy Board Staff (D/SPBS). The D/SPBS, may

revisit the matter with the Senior Agency Official or refer the matter

to the Security Policy Forum as deemed appropriate.

(D) Should the matter remain unresolved, the Security Policy Forum

may consider referral to the SPB, the agency head, or the National

Security Council as deemed appropriate.

(ii) Industry. (A) Contractor employees are encouraged to bring

suspected departures from the reciprocity provisions of the NISPOM to

the attention to their Facility Security Officer (FSO) or Contractor

Special Security Officer (CSSO), as appropriate, for resolution.

(B) Should the matter remain unresolved, the complainant (employee,

FSO, or CSSO) is encouraged to report the matter formally to the

Cognizant Security Office (CSO) for resolution.

(C) Should the CSO responses be determined inadequate by the

complainant, the matter should be reported formally to the Senior

Agency Official within the Cognizant Security Agency (CSA) for

resolution.

(D) Should the Senior Agency Official response be determined

inadequately by the complainant, the matter should be reported formally

to the Director, information Security Oversight Office (ISOO) for

resolution.

(E) The Director, ISOO, may revisit the matter with the Senior

Agency Official or refer the matter to the agency head or the National

Security Council as deemed appropriate.

(2) An annual survey administered to a representative sampling of

agency and private sector facilities to assess overall effectiveness of

agency adherence to applicable reciprocity requirements.

(i) In coordination with the D/SPBS, the Director, ISOO, as

Chairman of the NISP Policy Advisory Committee (NISPPAC), shall develop

and administer an annual survey to a representative number of cleared

contractor activities/employees to assess the effectiveness of

interagency reciprocity implementation. Administration of the survey

shall be coordinated fully with each affected Senior Agency Official.

(ii) In coordination with the NISPPAC, the D/SPBS shall develop and

administer an annual survey to a representative number of agency

activities/personnel to assess the effectiveness of interagency

reciprocity implementation. Administration of the survey shall be

coordinated fully with each affected Senior Agency Official.

(iii) The goal of annual surveys should not be punitive but

educational. All agencies and departments have participated in the

crafting of these facilities policies, therefore, non-compliance is a

matter of internal education and direction.

(e) Agencies will continue to review and assess the potential value

added to the process of co-use of facilities by development of

electronic data retrieval across government.

Dated: January 22, 1998.

L.M. Bynum,

Alternate OSD Federal Register Liaison Officer, Department of Defense.

[FR Doc. 98-1956 Filed 1-29-98; 8:45 am]

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