NIST 800-171 is a National Institute of Standards and Technology publication that provides a comprehensive set of security controls for safeguarding CUI.
It also requires contractors to report cyber incidents impacting CUI to the DoD in a designated time frame.
What is the DFARS Interim Rule?
The DFARS Interim Rule, formally known as Defense Federal Acquisition Regulation Supplement (DFARS) 252.204-7012, is a set of regulations that governs how defense contractors handle and protect sensitive data. This rule is particularly crucial in the context of cybersecurity, as it outlines specific requirements that contractors must meet to ensure the security of defense information.
Under this rule, contractors are required to implement the National Institute of Standards and Technology's (NIST) Special Publication (SP) 800-171, which outlines the security controls that should be in place to protect sensitive defense information. This includes both unclassified and classified information and extends to information systems that process, store, or transmit such data.
The DFARS Interim Rule also mandates that contractors report any cyber incidents that affect covered defense information, the contractor's information system, or the contractor's ability to provide operationally critical support. This is to ensure that the Department of Defense (DoD) is kept informed of any potential threats to national security.
The rule also has provisions for cloud services. If a contractor uses an external cloud service provider to store, process, or transmit any covered defense information, they must ensure that the covered contractor information systems and storage meet security requirements equivalent to those outlined in the NIST SP 800-171.
Why Does DFARS Matter?
Ensuring timely cyber incident reporting is crucial for external cloud service providers handling sensitive defense information. This information, known as Covered Defense Information (CDI), can include military plans or technical data and requires robust security measures to protect national security.
The Department of Defense (DoD) mandates that its contractors safeguard CDI using systems with "adequate security." This often means implementing controls outlined in a program like NIST 800-171. When a contractor uses an external cloud service provider to store or process CDI, that provider also becomes responsible for maintaining adequate security. Cloud service providers typically outline their security measures in a system security plan, which the DoD may review during an authorization process.
Here's where cyber incident reporting comes in. Cyber incidents are events that compromise the security of information systems, potentially leading to unauthorized access, data breaches, or disruptions. By requiring that contractors file a cyber incident report of any event impacting CDI (usually within a timeframe of a few days), the DoD can react quickly to mitigate damage and identify larger cyber attacks. This collaborative approach between DoD, contractors, and cloud service providers strengthens overall cybersecurity and protects critical national security information.
Who Needs to Comply with DFARS 252.204-7012?
The reach of DFARS 252.204-7012 is extensive - from prime contractors to subcontractors and suppliers. It is not limited to direct contract holders with the Department of Defense (DoD), but extends to any organization that interacts with Covered Unclassified Information (CUI) in the course of fulfilling a DoD contract. This includes entities that may not traditionally be seen as part of the defense sector, such as universities, consulting firms, and non-profit organizations.
Primarily, the regulation applies to defense contractors. These are companies that have entered into a contract with the DoD, providing a service or system that supports the department's operations, e.g., a military or space application. The term "defense contractor" is broad and can encompass a wide range of businesses, from manufacturers of military equipment to providers of IT services.
However, the scope of DFARS 252.204-7012 extends beyond just defense contractors. The regulation also applies to subcontractors. These are entities that have a contract with a prime contractor to provide a portion of the work or services stipulated in the prime contract. If a subcontractor handles, stores, or processes any controlled unclassified information (CUI) on behalf of the government, they are required to comply with DFARS 252.204-7012.
Another group that falls under the purview of DFARS 252.204-7012 are suppliers. These are companies that provide goods or services to a contractor or subcontractor. If these suppliers have access to, use, or store CUI, they too must adhere to the regulations set forth in DFARS 252.204-7012.
In addition, any organization that holds, processes, or transmits CUI as part of a DoD contract is subject to DFARS 252.204-7012. This includes universities conducting research on behalf of the DoD, consulting firms providing strategic advice, and even non-profit organizations that receive DoD funding.
How Defense Contractors Comply with DFARS
Compliance is not just a matter of ticking boxes on a checklist but rather a comprehensive approach to data security and protection. The process begins with understanding the requirements of the DFARS clause and then implementing the necessary measures to meet these stipulations.
The first step is to protect unclassified Covered Defense Information (CDI). This involves implementing the 110 security controls stipulated in the Special Publication (SP) 800-171. These controls cover a wide range of security aspects, from access control to system maintenance, ensuring a robust defense against potential cyber threats.
Next, defense contractors must report any cyber incidents to the Department of Defense (DoD) and provide access to servers and logs. This means that all cyber incidents, even those that might seem insignificant, need to be reported to the DoD's Cyber Crimes Center (DC3). Contractors are also required to retain all cyber incident data for 90 days and assist DC3 with any follow-up investigations as needed.
Another crucial aspect of compliance is ensuring that any cloud service provider they use meets FedRAMP Moderate or Equivalent standards. This requirement ensures that the cloud services used by contractors meet the stringent security standards set by the federal government.
Overlap Between DFARS and CMMC
The Defense Federal Acquisition Regulation Supplement (DFARS) and the Cybersecurity Maturity Model Certification (CMMC) are two critical cybersecurity frameworks that defense contractors must understand and comply with. Both of these frameworks have a significant overlap, primarily because they are designed to achieve a common goal: ensuring the security of defense information.
DFARS 252.204-7012 is a clause that requires defense contractors to implement sufficient security measures to protect covered defense information (CDI). This includes technical information, system security, and computer software. The clause also requires contractors to report cyber incidents to the Department of Defense (DoD).
On the other hand, CMMC is a certification process that measures a defense contractor's cybersecurity maturity. It's a model that verifies contractors have the necessary controls to protect sensitive data, including Federal Contract Information (FCI) and Controlled Unclassified Information (CUI).
The overlap between DFARS and CMMC lies in their shared objective of protecting sensitive defense information. Both frameworks require contractors to implement robust cybersecurity measures and report cyber incidents. However, while DFARS is more about compliance, CMMC focuses on the maturity of a contractor's cybersecurity practices.
The DFARS 7012 and CMMC are two critical regulations that have been implemented to enhance the cybersecurity posture of the Defense Industrial Base (DIB). While they may seem like two separate entities, they actually complement each other in several ways, creating a robust framework for cybersecurity within the DIB.
The first point of intersection between DFARS 7012 and CMMC is the shared implementation of the NIST 800-171 controls. DFARS 7012 requires the implementation of the 110 security controls specified in NIST SP 800-171. Similarly, CMMC Level 2, which is the minimum level that must be attained by contractors handling Controlled Unclassified Information (CUI), also requires compliance with the same 110 NIST SP 800-171 security controls. This shared implementation ensures a consistent approach to cybersecurity across the DIB, making it easier for contractors to comply with both regulations.
Another way DFARS 7012 and CMMC complement each other is through their enforcement mechanisms. Under DFARS 7012, compliance with NIST SP 800-171 has not been consistently enforced. However, with the introduction of CMMC, compliance will be checked by independent and certified third-party assessors. This ensures that contractors are not just claiming compliance but are actually implementing the necessary controls.
Furthermore, both DFARS 7012 and CMMC have similar flowdown requirements. This means that all subcontractors must follow similar requirements as the prime contractor. This ensures that the entire supply chain, from the prime contractor to the smallest subcontractor, is secure.
Lastly, both DFARS 7012 and CMMC are established via DFARS 7021. This means that every DIB supplier will have both requirements moving forward, especially after 2025. This integration ensures that the cybersecurity requirements for DIB suppliers are streamlined and consistent, reducing the burden of compliance.
Final Thoughts on DFARS 252.204-7012
Understanding and complying with DFARS 252.204-7012 is crucial for defense contractors. It not only ensures the security of covered defense information but also fortifies the contractor information system against cyber incidents. The overlap with CMMC further enhances the cybersecurity maturity of the defense sector.
The stringent security measures outlined in DFARS 252.204-7012, including the need for a NIST SP compliant information system and timely incident reporting, are designed to safeguard critical support systems.
These measures also extend to cloud services, reinforcing the importance of robust security across all platforms.
If you need assistance with achieving cybersecurity compliance of any nature, it's time to get an expert (or two) on board. Site2 has worked with contractors and subcontractors across a host of highly regulated industries for years.