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NISPOM Revised to Incorporate DSS and GCA Requirements

Client Alert | 1 min read | 08.08.18

On August 1, 2018, DoD published the National Industrial Security Program: Industrial Security Procedures for Government Activities (“Volume 2”), which finally replaces the 1985 Industrial Security Regulation much as the original National Industrial Security Program Operating Manual (NISPOM) had replaced the Industrial Security Manual applicable to contractors. Volume 2 prescribes security practices applicable to U.S. government activities and includes an extended discussion of facility security clearances (FCLs), including examples of documentation that sponsoring agencies can use to justify an FCL, an exception for continued FCL processing even if it cannot be completed in time to qualify the company for participation in a procurement action, and uniform criteria for identification of key management personnel for various business structures. Volume 2 also establishes detailed procedures for DSS oversight of contractor investigations of compromised information, DSS processing of limited access authorization, and DSS requirements for international security programs including foreign government and contractor access to U.S. classified information.

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Client Alert | 1 min read | 07.08.26

CAS Board Publishes Final Rule Rescinding CAS 404, 408, 409, and 4117

As part of its ongoing effort to conform the Cost Accounting Standards (“CAS”) to generally accepted accounting principles (“GAAP”), the CAS Board published a final rule rescinding CAS 408 (Accounting for costs of compensated personal absence) and CAS 411 (Accounting for acquisition costs of material).  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which will be located in new paragraphs of CAS 405 (Accounting for unallowable costs).  Specifically, the CAS Board retained the requirements currently located at CAS 404-50(d)(1), CAS 409-50(e)(5), CAS 409-50(j)(1), and CAS 409-50(j)(4), which the CAS Board explained are necessary to protect the Government’s interests.  Otherwise, the CAS Board determined that the requirements of CAS 404, 408, 409, and 411 overlapped with GAAP such that GAAP “may be applied reasonably as a substitute for CAS to support contract cost and pricing.”...

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