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For companies doing business with the Department of Defense (DoD), the Cybersecurity Maturity Model Certification (CMMC) has been a source of confusion for nearly five years. Originally, November 30, 2020, was the deadline for DoD to implement a standard methodology for assessing DoD contractor compliance with security requirements in the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171. Concurrently, the DoD would roll out CMMC as a certification process designed to measure a company’s maturity and institutionalization of cybersecurity practices and processes. This certification, in turn, would be required for performance of DoD contracts.…

Continue Reading CMMC – Where Do We Stand in 2023?

On Nov. 4, the U.S. Department of Defense (DoD) announced that it is suspending the current iteration of the Cybersecurity Maturity Model Certification program (CMMC) in order to streamline the size and scope of required administrative, technical, and physical controls for businesses contracting with DoD. Originally, CMMC was designed to take full effect in 2025 by requiring every defense contractor responsible for processing controlled unclassified information (CUI) to obtain certification from an approved third-party auditor indicating satisfaction of one of five levels of certification. Implementation of CMMC is now halted until DoD has completed a revision to the program intended to strategically meet the needs and capabilities of industries conducting business with the government. As the Office of Under Secretary of Defense described it, the goal is to make cybersecurity requirements “streamlined, flexible, and secure.”

In its place, DoD intends to promote CMMC 2.0, which will reduce the certification model from five levels to three. CMMC 2.0 will remove additional controls added under the initial program and rely primarily on those set forth in NIST 800-171. All contractors required to meet Level 1 (foundational, with 10 required cybersecurity practices and annual self-assessments) will be able to self-attest satisfaction of associated requirements. Level 2 (advanced, with 110 required practices aligned with NIST 800-171) will take a bi-furcated approach to certification with some priority contractors needing to participate in the audit process, while a subset of non-priority contractors will be able to self-attest satisfaction. In the coming weeks, DoD will announce the approach for Level 3 (expert, with at least 110 required practices aligned with NIST 800-171), which will likely be subject to the audit process as well as heightened requirements.
Continue Reading See ya, CMMC. Hello, CMMC 2.0: DOD Announces Suspension of Current Information Security Certification Program

While hardly a new topic for anyone doing business with the government, current events and the challenges of COVID-19 provide a cautionary tale and proactive reminder that doing business with the government carries with the burden of ensuring applicable data privacy and security protections are in place.  As companies consider existing relationships with the U.S. government, or potentially pursuing new business with the U.S. government in responding to current challenges, we thought it a good time to provide a high-level summary of what to expect.

All organizations store, maintain, and process data to some extent.  However, organizations that contract with the federal government may also be storing controlled unclassified information (“CUI”).  The federal government requires that CUI be protected from public disclosure; or other unauthorized use.  Protection of CUI in nonfederal systems and organizations is important to federal agencies and can directly affect the ability of the federal government to successfully conduct its essential missions and functions. For example, over the last decade, cyber criminals have increasingly targeted contractor organizations to extract information in an attempt to weaken the federal government’s supply chain. Accordingly, companies can expect to see an emphasis on security of CUI when contracting with the federal government as they process CUI and other types of data on the government’s behalf, whether directly as a prime contractor or subcontractor to a prime contractor of the government.…

Continue Reading COVID-19 Bulletin: Dreaming of a government contract? Neglecting data security can be a nightmare.

In the summer of 2015, we cautioned that the Department of Defense’s (DoD’s) new cybersecurity regulations could be used offensively to support False Claims Act (FCA) cases and bid protests. Four years later, those premonitions have unfortunately come true. Recently, a federal court refused to dismiss a relator’s implied certification FCA case in which he alleged that his employer “misrepresented … to the government the extent to which it had equipment required by the regulations, instituted required security controls, and possessed necessary firewalls” in violation of DoD’s cybersecurity regulations. United States ex rel. Markus v. Aerojet Rocketdyne Holdings, Inc., No. 2:15-cv-2245, 2019 WL 2024595, *3 (E.D. Cal. May 8, 2019).
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Continue Reading False Claims Act Case Based On DoD’s Cybersecurity Regulations Survives Motion to Dismiss

A recent GAO decision denying a contractor’s protest because of cybersecurity concerns offers contractors four lessons on how to avoid making the same mistakes.

I.  Background Facts and Decision

Syneren Technologies Corporation was one of 20 contractors who responded to a Navy RFP to award an ID/IQ contract for IT systems and software to support human resource operations involving a variety of business enterprise services. The work was to be performed at a government facility and involved DoD and Navy…

Continue Reading Selling Software to the Government: Four Cybersecurity Lessons from a Failed DoD Bid Protest

Join Taft attorneys Barbara Duncombe and Bill Wagner for a complimentary seminar on the DoD cybersecurity regulations on Oct. 18 at Taft’s Indianapolis office. They will participate in an informal, interactive discussion with Richard Banta and Alex Carroll from Lifeline Data Centers and Josh Griswold and Joe Turek from Chubb concerning recent developments (including cyber breaches), evolving standards of compliance and practical, effective risk mitigation strategies. Click here to register.

Topics will include:

  • Final preparations to ensure compliance with DoD’s

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Continue Reading Upcoming Seminar: Cybersecurity for Defense Contractors and Manufacturers

The recent sentencing of a former Boeing engineer for stealing trade secrets raised the question of whether a defense contractor has a duty to notify the Department of Defense (DoD) under the Safeguarding Covered Defense Information and Cyber Incident Reporting Regulation (DFARS 252.204-7012), when the contractor has knowledge that an employee may be stealing trade secrets.

1. The Sentencing of Mr. Justice for Economic Espionage and AECA and ITAR Violations.

Former Boeing Satellite Systems’ engineer and long-time employee Gregory Allen…
Continue Reading What Are A Defense Contractor’s Reporting Obligations When An Employee May Be Stealing Trade Secrets?

The American Arbitration Association (AAA) and its International Centre for Dispute Resolution (ICDR) recently created an aerospace, aviation and national security panel of arbitrators to handle complex, high-value aerospace, aviation, defense, cyber and security-related disputes. Similarly, AAA has a special panel of arbitrators to handle technology-related disputes. But what should companies involved in these types of arbitration cases expect?

Taft attorneys Bill Wagner and Michael Diamant recently published an article in Law360 with 10 tips for presenting complex cases in…
Continue Reading 10 Tips for Presenting Complex Cases In Arbitration

DOD New Cybersecurity regulationsThe US Department of Defense’s (DoD) new cybersecurity regulations require defense contractors to cooperate with Government support services contractors investigating a “cyber incident that affects a covered contractor information system or the covered defense information residing therein or that affects the contractor’s ability to provide operationally critical support.”  DoD’s Defense Industrial Base Cybersecurity Activities Final Rule, 32 CFR 236.4(b), (m)(5) (effective Nov. 3, 2016); Response to Public Comments, 81 FR 68312 (Oct. 4, 2016).

It doesn’t take much imagination to…
Continue Reading DoD’s New Cybersecurity Regulations: How to protect yourself when a Government support services contractor wants to inspect your data and devices

The new DoD cybersecurity regulations require contractors to implement the security requirements specified by the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171, “Protecting Controlled Unclassified Information in Nonfederal Information Systems and Organizations,” not later than Dec. 31, 2017. DFARS, 252.204-7008(c)(1).

However, a contractor may propose to vary from the NIST SP 800-171 requirements under two circumstances. Under DFARS 252.204-7008(c)(2), a contractor may propose to vary from the security requirements specified by NIST SP 800-171 through a…
Continue Reading Will the New DoD Cybersecurity Regulations Cause a New Wave of Protest Disputes?