scope:

a. The NISP applies to all executive branch departments and agencies and to all cleared contractor facilities located within the United States, its Trust Territories and Processions.

b. This Manual applies to and shall be used by contractors to safeguard classified information released during all phases of the contracting, licensing, and grant process, including bidding, negotiation, award, performance, and termination. This Manual also applies to classified information not released under a contract, license, certificate or grant, and to foreign government information furnished to contractors that requires protection in the interest of national security. The Manual implements applicable Federal Statutes, Executive orders, National Directives, international treaties, and certain government-to- government agreements.

c. If a contractor determines that implementation of any provision of this Manual is more costly than provisions imposed under previous U.S. Government policies, standards or requirements, the contractor shall notify the Cognizant Security Agency (CSA). The notification shall indicate the prior policy, standard or requirement and explain how the NISPOM requirement is more costly to implement. Contractors shall, however, implement any such provision within three years from the date of this Manual, unless a written exception is granted by the CSA. When implementation is determined to be cost neutral, or where cost savings or cost avoidance can be achieved, implementation by contractors shall be effected no later than 6 months from the date of this Manual.

d. This Manual does not contain protection requirements for Special Nuclear Material.

Purpose. This Manual is issued in accordance with the National Industrial Security Program (NISP). The Manual prescribes requirements, restrictions, and other safeguards that are necessary to prevent unauthorized disclosure of classified information and to control authorized disclosure of classified information released by U.S. Government Executive Branch Departments and Agencies to their contractors. The Manual also prescribes requirements, restrictions, and other safeguards that are necessary to protect special classes of classified information, including Restricted Data, Formerly Restricted Data, intelligence sources and methods information, Sensitive Compartmented Information, and Special Access Program information. These procedures are applicable to licensees, grantees, and certificate holders to the extent legally and practically possible within the constrains of applicable law and the Code of Federal Regulations.