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Uncontrolled Information: DoD Audit Finds Contractor Lapses in Protecting Controlled Unclassified Information

Client Alert | 1 min read | 08.02.19

The Department of Defense Inspector General has released a much-anticipated audit report regarding the protection of Controlled Unclassified Information (CUI) on contractor networks.  Begun last summer at the Defense Secretary’s request, the audits found that contractors are not consistently implementing cybersecurity standard NIST SP 800-171, despite being required to do so under DFARS 252.204-7012.  The report calls particular attention to common shortcomings regarding multifactor authentication, strong passwords, vulnerability management, and removable media, among others.

The report recommends that DoD:

  • Verify that contractors are identifying, responding to, and reporting cyber incidents involving CUI;
  • Assess contractors’ ability to protect CUI as part of the solicitation process; and
  • Validate, at least annually, that contractors are complying with their contractual cybersecurity requirements.

These recommendations are consistent with recent DoD efforts to establish a “Cybersecurity Maturity Model Certification” that would require contractors to be certified compliant with contractually-specified cybersecurity requirements to be eligible for award.

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FCC Clarifies Covered List for Power Inverters and Advanced Robotic Devices

On July 28, 2026, the Federal Communications Commission (FCC) updated its Covered List — established through the Secure and Trusted Communications Networks Act — to include foreign-produced connected power inverters and advanced robotic devices, following an executive branch national security determination that they “pose unacceptable risks to the national security of the United States or the safety and security of United States persons.” Equipment on the Covered List is ineligible for FCC equipment authorization, effectively prohibiting the import, sale, or marketing of those products without an exception or approval....

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