30 January 1998
Source: http://www.access.gpo.gov/su_docs/aces/aces140.html

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[Federal Register: January 30, 1998 (Volume 63, Number 20)]
[Rules and Regulations]
[Page 4580-4582]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ja98-11]

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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

[[Page 4581]]

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

[[Page 4582]]

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]
BILLING CODE 5000-04-M
