"Defense Department Publishes Interim Final Rule Detailing Its Process for Clearing Contractors under Foreign Ownership, Control, or Influence"

On April 9, 2014, the U.S. Department of Defense published an interim final rule (79 Fed. Reg. 19467-19478) outlining the process for granting security clearances to government contractors under foreign ownership, control or influence – i.e, contractors that have significant ties to foreign persons.

This Stroock Special Bulletin highlights key provisions of the interim final rule, which does not impose new requirements on contractors, but rather, codifies agency procedures under the National Industrial Security Program. The rule took immediate effect, but is subject to comment until June 9, 2014. The final rule may include changes, but we expect it to look much like the interim final rule.