DD FORM 254, PREPARATION GUIDE, DEPT. OF THE ARMY (2010)
DD FORM 254, PREPARATION GUIDE, DEPT. OF THE ARMY (2010)., Within The Department of Defense, Industrial Security is identified as the portion of
information security concerned with the protection of classified information in the
custody of U.S. industry. The purpose of the Industrial Security Program is to safeguard
classified information that may be or has been released to current, prospective or
former contractors.
The purpose of this guide is to provide guidance in the preparation of a DD Form 254,
Contract Security Classification Specification. This guide contains step-by-step
procedures for completing the DD Form 254. The instructions in this guide correspond
to the numbered items on the form.
The intention of a DD Form 254 is to convey security requirements, classification
guidance and provide handling procedures for classified material received and/or
generated on a classified contract. The DD Form 254 is a resource for providing security
requirements and classification guidance to a contractor. The DD Form 254 is a U.S.
publication referenced in the DFAR and applied to contracts involving access to classified
information by U.S. contractors. If the contract is with non-US Industry (foreign
governments, cleared foreign companies or international organizations) additional
guidance is on a case-by-case basis. The Industrial Security Implementing Agreement
(to the General Security of Military Information Agreement) is the overarching authority for
the bilateral protection of classified information with foreign governments. Any guidance
provided to contractors to explain protection requirements for classified information
exchanged under bilateral agreements must be conveyed through security contract
clauses, and not a DD Form 254.
NOTE: U.S. Industry is any company, educational institution, commercial
association/organization or other entity established and operating as a legitimate
business or enterprise and granted a Facility Security Clearance (FCL) by a cognizant
security agency (CSA).
Any misconduct/wrongdoing of a contractor, modification to the contract or changes to the
company ownership status, which could have an adverse impact upon national security,
the Army program and/or information, must be reported immediately to the Contract
Officer (KO) or a Contract Officer Designated Representative. (Note: For purposes of
this handbook, the term Contract Officer (KO) is used inclusively for the terms:
Contracting Officer Representative (COR), Alternate COR (ACOR) or Contracting Officer
Technical Representative (COTR)). The KO must be notified on all contract matters
through the COR/ACOR/COTR.