Table of Contents

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### APPENDIX C

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    Definitions:

    Access. The ability and opportunity to obtain knowledge of

    classified information.

    Adverse Information. Any information that adversely reflects on the

    integrity or character of a cleared employee, that suggests that

    his or her ability to safeguard classified information may be

    impaired, or that his or her access to classified information

    clearly may not be in the interest of national security.

    Affiliate. Any entity effectively owned or controlled by another

    entity.

    Approved Access Control Device. An access control device that meets

    the requirements of this Manual as approved by the FSO.

    Approved Built-in Combination Lock. A combination lock, equipped

    with a top-reading dial, that conforms to Underwriters'

    Laboratories, Inc. Standard Number, UL 768, Group 1R.

    Approved Combination Padlock. A three-position dial-type changeable

    combination padlock listed on the GSA Qualified Products List as

    meeting the requirements of Federal Specification FF-P-110.

    Approved Electronic, Mechanical, or Electro-Mechanical Device. An

    electronic, mechanical, or electro-mechanical device that meets the

    requirements of this Manual as approved by the FSO.

    Approved Key-Operated Padlock. A padlock, which meets the

    requirements of MIL-SPEC-P-43607 (shrouded shackle), National Stock

    Number 5340-00-799-8248, or MIL-SPEC-P-43951 (regular shackle),

    National Stock Number 5340-00-799-8016.

    Approved Security Container. A security file container, originally

    procured from a Federal Supply Schedule supplier that conforms to

    federal specifications and bears a "Test Certification Label" on

    the locking drawer attesting to the security capabilities of the

    container and lock. Such containers will be labeled "General

    Services Administration Approved Security Container" on the face of

    the top drawer. Acceptable tests of these containers can be

    performed only by a testing facility specifically approved by GSA.

    Approved Vault. A vault that has been constructed in accordance

    with this Manual and approved by the CSA.

    Approved Vault Door. A vault door and frame unit originally

    procured from the Federal Supply Schedule (FSC Group 71, Part III,

    Section E, FSC Class 7110), that meets Federal Specification

    AA-D-600.

    Authorized Person. A person who has a need-to-know for classified

    information in the performance of official duties and who has been

    granted a personnel clearance at the required level.

    Automated Information System. An assembly of computer hardware,

    software, and firmware configured for the purpose of automating the

    functions of calculating, computing, sequencing, storing,

    retrieving, displaying, communicating, or otherwise manipulating

    data, information and textual material.

    Automated Information System Security. All security safeguards

    needed to provide an acceptable level of protection for Automated

    Information Systems and the classified data processed.

    Classification Authority. The authority that is vested in a

    government official to make an initial determination that

    information requires protection against unauthorized disclosure in

    the interest of national security.

    Classified Contract. Any contract that requires or will require

    access to classified information by a contractor or his or her

    employees in the performance of the contract. (A contract may be a

    classified contract even though the contract document is not

    classified.) The requirements prescribed for a "classified

    contract" also are applicable to all phases of precontract

    activity, including solicitations (bids, quotations, and

    proposals), precontract negotiations, post-contract activity, or

    other Government Contracting Agency program or project which

    requires access to classified information by a contractor.

    Classification Guide. A document issued by an authorized original

    classifier that prescribes the level of classification and

    appropriate declassification instructions for specific information

    to be classified on a derivative basis. (Classification guides are

    provided to contractors by the Contract Security Classification

    Specification.)

    Classified Information. The term includes National Security

    Information, Restricted Data, and Formerly Restricted Data.

    Classified Information Procedures Act. A law that provides a

    mechanism for the courts to determine what classified information

    the defense counsel may access.

    Classified Visit. A visit during which the visitor will require, or

    is expected to require, access to classified information.

    Classifier. Any person who makes a classification determination and

    applies a classification category to information or material. The

    determination may be an original classification action or it may be

    a derivative classification action. Contractors make derivative

    classification determinations based on classified source material,

    a security classification guide, or a Contract Security

    Classification Specification.

    Cleared Commercial Carrier. A carrier that is authorized by law,

    regulatory body, or regulation to transport SECRET material and has

    been granted a SECRET facility clearance.

    Cleared Employees. All contractor employees granted a personnel

    security clearance (PCL) and all employees in-process for a PCL.

    Closed Area. An area that meets the requirements of this Manual, as

    approved by the CSA, for the purpose of safeguarding classified

    material that, because of its size or nature, or operational

    necessity, cannot be adequately protected by the normal safeguards

    or stored during nonworking hours in approved containers. (See

    5-306.)

    Cognizant Security Agency. Agencies of the Executive Branch that

    have been authorized by E.O. 12829 to establish an industrial

    security program for the purpose of safeguarding classified

    information under the jurisdiction of those agencies when disclosed

    or released to U.S. Industry. These agencies are: The Department of

    Defense, the Department of Energy, the Central Intelligence Agency,

    and the Nuclear Regulatory Commission. The Secretary of Defense

    (SECDEF) has been designated as Executive Agent for the NISP. Heads

    of the Executive Branches are required to enter into agreements

    with the SECDEF that establish the terms of the SECDEF's

    responsibilities on behalf of these agency heads for administration

    of industrial security on their behalf.

    Cognizant Security Office. 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.

    Colleges and Universities. All educational institutions that award

    academic degrees, and related research activities directly

    associated with a college or university through organization or by

    articles of incorporation.

    Communications Intelligence. Technical and intelligence information

    derived from foreign communications by other than the intended

    recipient.

    Communications Security. Protective measures taken to deny

    unauthorized persons information derived from telecommunications of

    the U.S. Government relating to national security and to ensure the

    authenticity of such communications.

    Company. A generic and comprehensive term which may include sole

    proprietorships, individuals, partnerships, corporations,

    societies, associations, and organizations usually established and

    operating to commonly prosecute a commercial, industrial or other

    legitimate business, enterprise, or undertaking.

    Compromise. The disclosure of classified information to an

    unauthorized person.

    CONFIDENTIAL. The designation that shall be applied to information

    or material the unauthorized disclosure of which could be

    reasonably expected to cause damage to the national security.

    Consignee. A person, firm, or government activity named as the

    receiver of a shipment; one to whom a shipment is consigned.

    Consignor. A person, firm, or government activity by whom articles

    are shipped. The consignor is usually the shipper.

    Constant Surveillance Service. A transportation protective service

    provided by a commercial carrier qualified by MTMC to transport

    CONFIDENTIAL shipments. The service requires constant surveillance

    of the shipment at all times by a qualified carrier representative,

    however, a facility clearance is not required for the carrier. The

    carrier providing the service must maintain a signature and tally

    record for the shipment.

    Continental Limits of the United States. U.S. territory, including

    the adjacent territorial waters located within the North American

    continent between Canada and Mexico.

    Contracting Officer. A government official who, in accordance with

    departmental or agency procedures, currently is designated as a

    contracting officer with the authority to enter into and administer

    contracts, and make determinations and findings with respect

    thereto, or any part of such authority. The term also includes the

    designated representative of the contracting officer acting within

    the limits of his or her authority.

    Contractor. Any industrial, educational, commercial, or other

    entity that has been granted an FCL by a CSA.

    Courier. A cleared employee, designated by the contractor, whose

    principal duty is to transmit classified material to its

    destination. The classified material remains in the personal

    possession of the courier except for authorized overnight storage.

    Conversion Rights. The right inherent in the ownership or holding

    of particular securities to exchange such securities for voting

    securities.

    Critical Nuclear Weapon Design Information. A DoD category of

    weapon data designating TOP SECRET Restricted Data or SECRET

    Restricted Data revealing the theory of operation or design of the

    components of a thermonuclear or implosion-type fission bomb,

    warhead, demolition munition, or test device.

    Custodian. An individual who has possession of, or is otherwise

    charged with, the responsibility for safeguarding classified

    information.

    Declassification. The determination that classified information no

    longer requires, in the interest of national security, any degree

    of protection against unauthorized disclosure, together with

    removal or cancellation of the classification designation.

    Declassification Event. An event that eliminates the need for

    continued classification of information.

    Defense Transportation System. Military controlled terminal

    facilities, Military Airlift Command controlled aircraft, Military

    Sealift Command controlled or arranged sealift and Government

    controlled air or land transportation.

    Department of Defense. The Office of the Secretary of Defense (OSD)

    (including all boards, councils, staffs, and commands), DoD

    agencies, and the Departments of Army, Navy, and Air Force

    (including all of their activities).

    Derivative Classification. A determination that information is in

    substance the same as information currently classified and the

    application of the same classification markings. Persons who only

    reproduce, extract, or summarize classified information, or who

    only apply classification markings derived from source material or

    as directed by a classification guide, need not possess original

    classification authority. Persons who apply derivative

    classification markings shall observe and respect original

    classification decisions and carry forward to any newly created

    documents any assigned authorized markings.

    Document. Any recorded information, regardless of its physical form

    or characteristics, including, without limitation, written or

    printed matter, tapes, charts, maps, paintings, drawing,

    engravings, sketches, working notes and papers; reproductions of

    such things by any means or process; and sound, voice, magnetic, or

    electronic recordings in any form.

    Downgrade. A determination that classified information requires, in

    the interest of national security, a lower degree of protection

    against unauthorized disclosure than currently provided, together

    with a changing of the classification designation to reflect a

    lower degree of protection.

    Effectively Owned or Controlled. A foreign government or any entity

    controlled by a foreign government has the power, either directly

    or indirectly, whether exercised or exercisable, to control the

    election, appointment or tenure of the Offeror's officers, or a

    majority of the Offeror's board of directors by any means; e.g.,

    ownership, contract, or operation of law (or equivalent power for

    unincorporated organizations).

    Embedded System. An AIS that performs or controls a function,

    either in whole or in part, as an integral element of a larger

    system or subsystem such as, ground support equipment, flight

    simulators, engine test stands, or fire control systems.

    Entity. Any U.S. or foreign person.

    Escort. A cleared employee, designated by the contractor, who

    accompanies a shipment of classified material to its destination.

    The classified material does not remain in the personal possession

    of the escort but the conveyance in which the material is

    transported remains under the constant observation and control of

    the escort.

    Evaluated Products List. A documented inventory of equipments,

    hardware software, and/or firmware that have been evaluated against

    the evaluation criteria found in DoD 5200.28-STD.

    Facility. A plant, laboratory, office, college, university, or

    commercial structure with associated warehouses, storage areas,

    utilities, and components,that, when related by function and

    location, form an operating entity. (A business or educational

    organization may consist of one or more facilities as defined

    herein.) For purposes of industrial security, the term does not

    include Government installations.

    Facility (Security) Clearance. An administrative determination

    that, from a security viewpoint, a facility is eligible for access

    to classified information of a certain category (and all lower

    categories).

    Firmware. A method of organizing control of an AIS in a

    microprogrammed structure in addition to, or rather than, software

    or hardware. Microprograms are composed of microinstructions,

    normally resident in read-only memory, to control the sequencing of

    computer circuits directly at the detailed level of the single

    machine instruction.

    Foreign Government. Any national governing body organized and

    existing under the laws of any country other than the United States

    and its possessions and trust territories and any agent or

    instrumentality of that government.

    Foreign Government Information. Information that is: a. Provided to

    the U.S. by a foreign government or governments, an international

    organization of governments, or any element thereof with the

    expectation, expressed or implied, that the information, the source

    of the information, or both, are to be held in confidence; or b.

    Produced by the U.S. pursuant to, or as a result of, a joint

    arrangement with a foreign government or governments, an

    international organization of governments or any element thereof,

    requiring that the information, the arrangement, or both are to be

    held in confidence.

    Foreign Interest. Any foreign government, agency of a foreign

    government, or representative of a foreign government; any form of

    business enterprise or legal entity organized, chartered or

    incorporated under the laws of any country other than the U.S. or

    its possessions and trust territories, and any person who is not a

    citizen or national of the United States.

    Foreign Nationals. Any person who is not a citizen or national of

    the United States.

    Foreign Person. Any foreign interest and any U.S. person

    effectively owned or controlled by a foreign interest.

    Foreign Recipient. A foreign government or international

    organization, to whom the U.S. is providing classified material.

    Formerly Restricted Data. Classified information jointly determined

    by the DOE and its predecessors and the DOD to be related primarily

    to the military utilization of atomic weapons and removed by the

    DOE from the Restricted Data category pursuant to section 142(d) of

    the Atomic Energy Act of 1954, as amended, and safeguarded as

    National Security Information, subject to the restrictions on

    transmission to other countries and regional defense organizations

    that apply to Restricted Data.

    Freight Forwarder (Transportation Agent). Any agent or facility

    designated to receive, process, and transship U.S. material to

    foreign recipients. In the context of this Manual, an agent or

    facility cleared specifically to perform these functions for the

    transfer of U.S. classified material to foreign recipients.

    Government-To-Government Channels. Transfers by government

    officials through official channels or through other channels

    specified by the governments involved.

    Government Contracting Activity. An element of an agency designated

    by the agency head and delegated broad authority regarding

    acquisition functions.

    Handcarrier. A cleared employee, designated by the contractor, who

    occasionally handcarries classified material to its destination in

    connection with a classified visit or meeting. The classified

    material remains in the personal possession of the handcarrier

    except for authorized overnight storage.

    Home Office Facility. The headquarters facility of a multiple

    facility organization.

    Independent Research and Development. A contractor funded research

    and development effort that is not sponsored by, or required in

    performance of, a contract or grant that consists of projects

    falling with the areas of basic research; applied research;

    development; and systems, and other concept formulation studies.

    Industrial Security. That portion of information security which is

    concerned with the protection of classified information in the

    custody of U.S. industry.

    Information. Any information or material, regardless of its

    physical form or characteristics.

    Information Security. The result of any system of administrative

    policies and procedures for identifying, controlling, and

    protecting from unauthorized disclosure, information the protection

    of which is authorized by executive order.

    Information System Security Officer. The contractor employee

    responsible for the implementation of Automated Information Systems

    security, and operational compliance with the documented security

    measures and controls, at the contractor facility.

    Intelligence. Intelligence is the product resulting from the

    collection, evaluation, analysis, integration, and interpretation

    of all available information, that concerns one or more aspects of

    foreign nations or of areas of foreign operations, and that is

    immediately or potentially significant to military planning and

    operations.

    Intelligence Information. Information that is under the

    jurisdiction and control of the Director of Central Intelligence or

    a member of the Intelligence Community.

    Intelligent Terminal. An AIS term that means a terminal that is

    programmable, able to accept peripheral devices, able to connect

    with other terminals or computers, able to accept additional

    memory, or which may be modified to have these characteristics.

    Letter of Consent. The form used by the CSA to notify a contractor

    that a PCL or a Limited Access Authorization has been granted to an

    employee.

    Letter of Offer and Acceptance (LOA). United States Department of

    Defense Offer and Acceptance that, when executed, provides that the

    U.S. offers to sell, subject to terms and conditions contained

    therein, defense material to a foreign government, and the foreign

    government accepts the offer, subject to those terms and

    conditions.

    Military Export Sales. Military Export Sales may by divided into

    Foreign Military Sales (FMS) under the AECA, sales under Section

    607 of the Foreign Assistance Act (FAA) and Direct Commercial

    Sales. FMS and FAA are government-to-government transactions. For

    these sales, the DoD purchases articles and services from U.S.

    firms, takes title to the equipment, or has title to the articles

    to be sold from U.S. stocks, and sells the articles or services to

    the foreign buyer. For direct commercial sales, the U.S. firm sells

    directly to the foreign government or international organization.

    Limited Access Authorization. Security access authorization to

    CONFIDENTIAL or SECRET information granted to non-U.S. citizens

    requiring such limited access in the course of their regular

    duties.

    Material. Any product or substance on, or in which, information is

    embodied.

    Multiple Facility Organization. A legal entity (single

    proprietorship, partnership, association, trust, or corporation)

    that is composed of two or more facilities.

    National of the United States. A national of the United States is:

    a. A citizen of the United States, or, b. A person who, though not

    a citizen of the United States, owes permanent allegiance to the

    United States.

    NOTE: 8 U.S.C. 1101(a) (22). 8 U.S.C. 1401, subsection (a) lists in

    paragraphs (1) through (7) categories of persons born in and

    outside the United States or its possessions who may qualify as

    nationals of the United States. This subsection should be consulted

    when doubt exists as to whether or not a person can qualify as a

    national of the United States.

    National Security. The national defense and foreign relations of

    the United States.

    National Security Information. Any information that has been

    determined pursuant to E.O. 12356 or any predecessor order to

    require protection against unauthorized disclosure and is so

    designated. The classifications TOP SECRET, SECRET, and

    CONFIDENTIAL are used to designate such information and it is

    referred to as "classified information."

    NATO Information. Information bearing NATO markings, indicating the

    information is the property of NATO, access to which is limited to

    representatives of NATO and its member nations unless proper NATO

    authority has been obtained to release outside of NATO.

    Need-to-Know. A determination made by the possessor of classified

    information that a prospective recipient has a requirement for

    access to, knowledge of, or possession of the classified

    information to perform tasks or services essential to the

    fulfillment of a classified contract or program.

    Network. An AIS term meaning a network composed of a communications

    medium and all components attached to that medium whose

    responsibility is the transference of information. Such components

    may include AISs, packet switches, telecommunications controllers,

    key distribution centers, and technical control devices.

    Original Classification. An initial determination that information

    requires, in the interest of national security, protection against

    unauthorized disclosure, together with a classification designation

    signifying the level of protection required. (Only government

    officials, who have been designated in writing, may apply an

    original classification to information.)

    Parent Corporation. A corporation that owns at least a majority of

    another corporation's voting securities.

    Personnel (Security) Clearance. An administrative determination

    that an individual is eligible, from a security point of view, for

    access to classified information of the same or lower category as

    the level of the personnel clearance being granted.

    Possessions. U.S. possessions are the U.S. Virgin Islands, Guam,

    American Samoa, Swain's Island, Howland Island, Baker Island,

    Jarvis Island, Midway Islands (this consists of Sand Island and

    Eastern Island), Kingman Reef, Johnston Atoll, Navassa Island, Swan

    Island,Wake Island, and Palmyra Island.

    Prime Contract. A contract let by a GCA to a contractor for a

    legitimate government purpose.

    Prime Contractor. The contractor who receives a prime contract from

    a GCA.

    Principal Management Facility. A cleared facility of an MFO which

    reports directly to the HOF and whose principal management official

    has been delegated certain personnel security administration

    responsibilities for a defined geographical or functional area. The

    PMF will function as a HOF in relation to its area of

    responsibility. Both cleared and uncleared facilities may be under

    the jurisdiction of a PMF.

    Proscribed Information.

    a.   Top Secret information;

    b.   Communication Security (COMSEC) information, except classified

    keys used to operate secure telephone units (STU IIIs);

    c.   Restricted Data as defined in the U.S. Atomic Energy Act of

    1954, as amended;

    d.   Special Access Program (SAP) information; or

    e.   Sensitive Compartmented Information (SCI)

    Protective Security Service. A transportation protective service

    provided by a cleared commercial carrier qualified by the Military

    Traffic Management Command (MTMC) to transport SECRET shipments.

    Public. Any contractor, subcontractor, Government official, or

    other individual who does not require access to information

    (classified or unclassified) in furtherance of the performance of

    the classified contract under which the information was provided to

    the contractor or as authorized by this Manual.

    Public Disclosure. The passing of information and/or material

    pertaining to a classified contract to the public, or any member of

    the public, by any means of communication.

    Reference Material. Documentary material over which the GCA, who

    lets the classified contract, does not have classification

    jurisdiction, and did not have classification jurisdiction at the

    time the material was originated. Most material made available to

    contractors by the Defense Technical Information Center and other

    secondary distribution agencies is reference material as thus

    defined.

    Regrade. To assign a higher or lower security classification to an

    item of classified material.

    Remote Terminal. A device for communication with an automated

    information system from a location, that is not within the central

    computer facility.

    Representative of a Foreign Interest (RFI). A citizen or national

    of the United States, who is acting as a representative of a

    foreign interest. (See "Foreign Interest.")

    Restricted Area. A controlled access area established to safeguard

    classified material, that because of its size or nature, cannot be

    adequately protected during working hours by the usual safeguards,

    but that is capable of being stored during non-working hours in an

    approved repository or secured by other methods approved by the

    CSA. (See paragraph 5-305.)

    Restricted Data. All data concerning the design, manufacture, or

    utilization of atomic weapons; the production of special nuclear

    material; or the use of special nuclear material in the production

    of energy, but shall not include data declassified or removed from

    the RD category pursuant to section 142 of the Atomic Energy Act of

    1954, as amended.

    SECRET. The designation that shall be applied only to information

    or material the unauthorized disclosure of which reasonably could

    be expected to cause serious damage to the national security.

    Security Cognizance. The Government office assigned the

    responsibility for acting for CSAs in the discharge of industrial

    security responsibilities described in this Manual.

    Security in Depth. A determination made by the CSA that a

    contractor's security program consists of layered and complementary

    security controls sufficient to deter and detect unauthorized entry

    and movement within the facility.

    Security Violation. Failure to comply with the policy and

    procedures established by this Manual that reasonably could result

    in the loss or compromise of classified information.

    Sensitive Compartmented Information. All Intelligence Information

    and material that requires special controls for restricted handling

    within compartmented channels and for which compartmentation is

    established.

    Shipper. One who releases custody of material to a carrier for

    transportation to a consignee. (See "Consignor.")

    Short Title. An identifying combination of letters and numbers

    assigned to a document or equipment for purposes of brevity.

    S

    ource Document. A classified document, other than a classification

    guide, from which information is extracted for inclusion in another

    document.

    Special Access Program. Any program that is established to control

    access, distribution, and to provide protection for particularly

    sensitive classified information beyond that normally required for

    TOP SECRET, SECRET, or CONFIDENTIAL information. A Special Access

    Program can be created or continued only as authorized by a senior

    agency official delegated such authority pursuant to E.O. 12356.

    Standard Practice Procedures. A document(s) prepared by a

    contractor that implements the applicable requirements of this

    Manual for the contractor's operations and involvement with

    classified information at the contractor's facility.

    Subcontract. Any contract entered into by a contractor to furnish

    supplies or services for performance of a prime contract or a

    subcontract. For purposes of this Manual a subcontract is any

    contract, subcontract, purchase order, lease agreement, service

    agreement, request for quotation (RFQ), request for proposal (RFP),

    invitation for bid (IFB), or other agreement or procurement action

    between contractors that requires or will require access to

    classified information to fulfill the performance requirements of

    a prime contract.

    Subcontractor. A supplier, distributor, vendor, or firm that

    furnishes supplies or services to or for a prime contractor or

    another subcontractor, who enters into a contract with a prime

    contractor. For purposes of this Manual, each subcontractor shall

    be considered as a prime contractor in relation to its

    subcontractors.

    Subsidiary Corporation. A corporation in which another corporation

    owns at least a majority of its voting securities.

    System Software. Computer programs that control, monitor, or

    facilitate use of the AIS; for example, operating systems,

    programming languages, communication, input-output control, sorts,

    security packages and other utility-type programs. Considered to

    also include off-the-shelf application packages obtained from

    manufacturers and commercial vendors, such as for word processing,

    spreadsheets, data base management, graphics, and computer-aided

    design.

    Technical Data. Information governed by the International Traffic

    in Arms Regulation (ITAR) and the Export Administration Regulation

    (EAR). The export of technical data that is inherently military in

    character is controlled by the ITAR, 22 CFR 120.1-130.17 (1987).

    The export of technical data that has both military and civilian

    uses is controlled by the EAR, 15 CFR 368.1-399.2 (1987).

    TOP SECRET. The designation that shall be applied only to

    information or material the unauthorized disclosure of which

    reasonably could be expected to cause exceptionally grave damage to

    the national security.

    Transclassification. When information has been removed from the RD

    category by a joint determination of DOE and DOD and placed in the

    FRD category in accordance with section 142d of the Atomic Energy

    Act.

    Transmission. The sending of information from one place to another

    by radio, microwave, laser, or other nonconnective methods, as well

    as by cable, wire, or other connective medium. Transmission also

    includes movement involving the actual transfer of custody and

    responsibility for a document or other classified material from one

    authorized addressee to another.

    Transshipping Activity. A government activity to which a carrier

    transfers custody of freight for reshipment by another carrier to

    the consignee.

    United States and Its Territorial Areas. The 50 states, the

    District of Columbia, the Commonwealth of Puerto Rico, Guam,

    American Samoa, the Virgin Islands, the Trust Territory of the

    Pacific Islands (also called Micronesia), Midway Island, Wake

    Island, Johnston Atoll, Kingman Reef, Swain's Island, and Palmyra

    Island.

    Unauthorized Person. A person not authorized to have access to

    specific classified information in accordance with the requirements

    of this Manual.

    United States. The 50 states and the District of Columbia.

    United States Citizen (Native Born). A person born in one of the

    following locations is considered to be a U.S. citizen for

    industrial security purposes: the 50 United States; District of

    Columbia; Puerto Rico; Guam; American Samoa; Northern Mariana

    Islands; U.S. Virgin Islands; Panama Canal Zone (if the father or

    mother (or both) was, or is, a citizen of the U.S.); the Federated

    States of Micronesia; and the Republic of the Marshall Islands.

    U.S. Person. Any form of business enterprise or entity organized,

    chartered or incorporated under the laws of the United States or

    its possessions and trust territories and any person who is a

    citizen or national of the United States.

    Upgrade. A determination that certain classified information, in

    the interest of national security, requires a higher degree of

    protection against unauthorized disclosure than currently provided,

    coupled with a changing of the classification designation to

    reflect such a higher degree.

    Voting Securities. Any securities that presently entitle the owner

    or holder thereof to vote for the election of directors of the

    issuer or, with respect to unincorporated entities, individuals

    exercising similar functions.

    Working Hours. The period of time when:

    a.   There is present in the specific area where classified

    material is located, a work force on a regularly scheduled shift,

    as contrasted with employees working within an area on an overtime

    basis outside of the scheduled workshift; and

     b.  The number of employees in the scheduled work force is

    sufficient in number and so positioned to be able to detect and

    challenge the presence of unauthorized personnel. This would,

    therefore, exclude janitors, maintenance personnel, and other

    individuals whose duties require movement throughout the facility.

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