Contractors and suppliers holding contracts with the Department of Defense, DoD are usually expected to remain compliant to Defense Federal Acquisition Regulation Supplement, DFARS. Typically, the DFARS clause will be included in the contract between the Department of Defense and the contractor. Basically, DFARS is a set of regulations that are usually meant to govern the state governments during the acquisition of both goods and services. In the event when a DoD contractor fails to comply with the DFARS regulations, the chances are that the contract with the Department of Defense, DoD will be terminated. In a worst-case scenario, a noncompliance to DFARS clauses will lead to all the work with DoD being lost.
The reason as to why the DoD contractors are required to comply with DFARS 252.204-7012 is that, during the contracts, they get to possess non-classified information, CUI of the government. CUI is the kind of information that requires the protection and regulation of dissemination controls. When such kind of information is disclosed or accessed maliciously, it has the potential of ruining the entity or the person who owns the information.
DFARS regulations clauses usually outlines the minimum requirement that a DoD contractor or a supplier has to meet to be deemed compliant. The DoD contractors are generally required to have mechanisms that can be relied on in reporting cyber incidents that put information at a compromise. This calls for adequate security that should cover the information systems. Although the term “adequate security” may not be definite, the mechanisms put in place should ensure that the information cannot be disclosed or maliciously accessed. To be clear on this, DFARS compliance outlines a number of guidelines with requirements necessary to meet adequate security. For each guideline, a DoD contractor may be required to provide details of implementation.
The DoD contractors are also required to report any cyber threat or attack compromising the security of the information in a rapid manner to the Department of Defense. In this case, DFARS provides that in the event of a cyber threat or attack, a good report of the incident has to be forwarded to the DoD. The report will basically allow the DoD to implement other mechanisms such as implementation of malicious software meant to boost the security of the information systems. Upon request by the federal government, the information systems of the DoD contractor may be scrutinized where a cyber incident occurs. Discover more about DFARS here: https://www.huffpost.com/entry/improving-the-government_b_470998.