The process for a cleared company to sponsor a Facility Clearance for a subcontractor
When working on a contract for a government agency that requires access to classified information, you company may run into a situation in which they need to subcontract a portion of the work. This could be someone building walls on a construction project or filling a niche cybersecurity need for data you’re working with. If the subcontractor doesn’t already hold a Facility Clearance (FCL) that allows them to work with classified information, you will need to sponsor them for one. This is a fairly common practice, and the process is relatively simple. Most of the work will be on the part of the company being sponsored, but the sponsor will have some initial work to do.
Beginning the Process
Once the sponsor has chosen which company will win the bid for the contract, they need to complete DD 254 together. This form is a contract between the two companies where the subcontractor will give information like their location and their Commercial and Government Entity (CAGE) Code. It outlines what the subcontractor will have access to and what their security guidelines will be.
This contract also gives your company some liability over the security of the subcontractor. If the sponsor becomes aware of any breaches of the security policies outlined in the DD 254, it is their responsibility to report them, as they’re also in breach of the contract.
Once the DD 254 is complete, the sponsor needs to send a sponsorship letter to the DCSA. This letter includes information on the subcontractor like the company name and name of their FSO. This letter also gives the justification for why the subcontractor needs to have an FCL in order to do their work. The DCSA will then take a few weeks to a month to evaluate if the facility has a legitimate need to know.
As of March 1, 2023, the DCSA has added an initial review of the sponsorship package where they only check for completeness and sufficient justification. If they find there’s missing information, they reach out to the sponsor to ask for further information about the subcontractor or more justification for their FCL. The DCSA will give the sponsor a deadline to provide this information, and if they fail to meet the deadline, they will have to repeat this process with a new sponsorship letter. However, once the DCSA has decided the need for an FCL is justified, the sponsor’s role is complete.
The Subcontractor’s Role
The DCSA will send the subcontractor an automated email once they’ve completed their evaluation. This email will explain they’re being sponsored for an FCL and give them their deadline to submit their FCL package, which will be 20 days from the date the email is sent. What the company needs to include in the FCL varies depending on their business structure, but every package will at least include the business license, fictitious name certificate, and information about any recent changes to the company’s structure. Other records required may include the FSO/ITPSO appointment letter, a signed SF 328 or a legal organization chart.
Once the FCL package is submitted, DCSA will investigate the company to ensure their information is correct and that there are no red flags that would indicate they can’t safeguard classified information. If the investigation runs smoothly and DCSA doesn’t find anything to be concerned about, they may grant an interim clearance, which will allow the company to begin to work with classified information while awaiting their final clearance.
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Once the facility is granted their FCL, they can begin the process to get their Key Management Personnel (KMP) cleared. Until the KMP are cleared, the company cannot seek PCLs for other employees, so this can also extend the time before the company is really able to begin work.
In total, this process from sponsorship letter to clearance typically takes between three to eight months, but we have seen it take more than a year. Unlike Personnel Clearances (PCL), which last between 12-18 months while the holder is not on a cleared contract, FCLs can be revoked immediately once a contract completes, especially if the company is not bidding for further cleared work. Because of this, companies may have to go through this process multiple times. If you’ve previously held an FCL and are seeking another, things may move slightly faster since the DCSA would likely only need to look into activity from the company while it was between clearances, but that isn’t guaranteed.
If you are an FSO looking to sponsor a contractor or a company seeking an FCL for the first time, Adamo’s FSO support services can help. Our experts can help your company establish their FCL or make sure your cleared company remains in compliance with employee training and PCL management.
