Defense Security Service

Adverse Information Reporting in the NISP

May 14, 2014

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Discuss:

• What happened at the Washington Navy Yard?

• What Is Adverse Information? • Reporting Requirement • Areas of Concern • Keys to Success • DSS Way Forward • Where can I learn more?

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Any Information that adversely reflects on the integrity or character of a cleared employee, that suggests that his or her ability to safeguard classified information may be impaired, or that his or her access to classified information clearly may not be in the interest of national security. (NISPOM Appendix C)

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Use of illegal Drugs

Abuse of legal drugs

Excessive use of alcohol

Wage Garnishments

Other indications of financial instability

Unauthorized release of classified information

Unauthorized access to classified information systems

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Contractors shall report adverse information coming to their attention concerning any of their cleared employees. Reports based on rumor or innuendo should not be made. The subsequent termination of employment of an employee does not obviate the requirement to submit this report. If the individual is employed on a Federal installation, the contractor shall furnish a copy of the report and it’s final disposition to the commander or head of installation. (NISPOM 1-302a)

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Areas of concern that DSS has observed that can increase risk.

• JPAS Maintenance – FSO or security staff are not performing required maintenance actions to keep individual clearance records up to date.

• Security Oversight – FSO does not have the ability to manage and direct security activities within the program.

• Security Integration – A Security culture is not integrated into the business enterprise.

• Remote FSO – FSO or Security Manager is not located at the facility in which the program is being implemented.

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Industry has a requirement to train employees on adverse information and the requirements for reporting.

While DSS is focused on ensuring that industry is complying with these reporting requirements, we are continuing to improve our methodology for assessing industry compliance with reporting requirements.

Currently, our personnel look at internal training and processes at each facility during the assessment, and validate the knowledge of employees and the effectiveness of processes by interviewing cleared employees.

We will be increasing our focus on adverse information reporting, and specifically will be looking at employee understanding along with the process company’s use for timely reporting of adverse information.

In the past our focus has been largely on cleared employees located in contractor facilities, but our intention is to make sure that reporting processes and training are just as comprehensive for all cleared individuals, including those located at government locations.

We will also be looking to ensure that adverse information reports are furnished to the commander or head of the installation for contractors located on Federal installations.

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Reports • Slipping through the Cracks – Committee on Oversight and Government Reform • Internal Review of the Washington Navy Yard Shooting • Security From Within – Independent Review of the Washington Navy Yard

Shooting

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“You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.” -Rahm Emanuel

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Discussion