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.