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Navigating Compliance: Proposed FAR Rule for CUI

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The world of federal contracting is changing. The Department of Defense (DoD), General Services Administration (GSA), and NASA have proposed new rules aimed at better protecting sensitive information. This proposal affects Controlled Unclassified Information (CUI) and if finalized, this rule will have significant implications for federal contractors, requiring investments in compliance measures and operational changes.


Here’s what you need to know.


Key Highlights of the Proposed Rule


  1. Uniform Requirements for CUI Handling


  • A new standard form will standardize how CUI is identified and safeguarded in contracts.


  • Mandatory clauses will establish consistent expectations for contractors and subcontractors regarding CUI handling.


  1. Mandatory Training and Reporting


  • CUI incidents must be reported within 8 hours of discovery.


  • Employees handling CUI must complete mandatory training on safeguarding practices.


  1. Compliance with NIST Standards


  • Contractors will need to align with NIST SP 800-171 or, in some cases, NIST SP 800-172 standards for enhanced security.


  • Prime contractors must flow down these requirements to all subcontractors.


 

Why This Matters to Your Business


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Enhanced Cybersecurity Is Essential


  • Protecting CUI isn’t just about compliance; it’s a business imperative. A single data breach could cost your company millions in damages, not to mention reputational harm.


Compliance Costs


  • While initial compliance may involve investments in training, system upgrades, and documentation, it will lead to more consistent safeguards and potentially reduce financial risks from incidents.


Impact on Small Businesses


  • If you’re a small business, understanding these requirements early is crucial. Provisions in the rule attempt to balance security with the unique challenges small businesses face.



What Can You Do Now?


  • Submit Public Comments - The proposed rule is open for public comment until March 17, 2025. This is your opportunity to share feedback and ask for clarifications. Submit your comments here.


  • Review Your Current CUI Practices - Assess how your organization currently handles sensitive information. Are your systems, processes, and training programs up to par?


  • Prepare for NIST Compliance - If you’re not already familiar with NIST SP 800-171, now’s the time to start. Implementing these controls sooner can save you time and resources later.


  • Engage with Experts - Partnering with compliance professionals, like our team at principia/RAID, can help streamline your approach to meeting these requirements.



 

Ready to Get Started?


We specialize in helping federal contractors navigate complex compliance landscapes, including NIST standards and cybersecurity requirements. If you’re unsure how this rule might impact your business, let’s talk. Together, we can develop a strategy to align your operations with the new regulations.


Contact us today to ensure you’re prepared for the changes ahead.






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(407) 347-7257​​

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