TREND: Government Contracts + Data Security = New Federal Contracting Data Security Rule

Which entity promulgated the new federal contracting rule? Federal Acquisition Regulations (“FAR”) Council

Which data security rule for contractors are we talking about? Basic Safeguarding of Contractor Information Systems

Which contracts will be hit by the new rule?

• all acquisitions by any federal executive agency
• beginning June 15, 2016
• If a contractor’s information system may contain “Federal contract information,” 
• Applies to all subcontractors too

All contractors, and affected subcontractors will be required to meet 15 safeguards:

• Limit information system access to authorized users, processes acting on behalf of authorized users, or devices (including other information systems);
• Limit information system access to the types of transactions and functions that authorized users are permitted to execute;
• Verify and control/limit connections to and use of external information systems;
• Control information posted or processed on publicly accessible information systems;
• Identify information system users, processes acting on behalf of users, or devices;
• Authenticate (or verify) the identities of those users, processes, or devices, as a prerequisite to allowing access to organizational information systems;
• Sanitize or destroy information system media containing Federal Contract Information before disposal or release for reuse;
• Limit physical access to organizational information systems, equipment, and the respective operating environments to authorized individuals;
• Escort visitors and monitor visitor activity; maintain audit logs of physical access; and control and manage physical access devices; 
• Monitor, control, and protect organizational communications (i.e., information transmitted or received by organizational information systems) at the external boundaries and key internal boundaries of the information systems; 
• Implement subnetworks for publicly accessible system components that are physically or logically separated from internal networks;
• Identify, report, and correct information and information system flaws in a timely manner; 
• Provide protection from malicious code at appropriate locations within organizational information systems;
• Update malicious code protection mechanisms when new releases are available; and
• Perform periodic scans of the information system and real-time scans of files from external sources as files are downloaded, opened, or executed

Lexology | Wilmer Cutler Pickering Hale and Dorr LLP | Final Government Contractor Basic Data Security Rule Issued