NIST SP 800-171 & CMMC Interim Rule Effective November 30, 2020

Brian Berger, President of Cytellix Corporation • November 30, 2020

NIST SP 800-171 & CMMC Interim Rule

Department of Defense’s Interim Rule Effective November 30, 2020

On September 29, 2020, the Department of Defense (DoD) released an interim rule that requires all suppliers to have a current assessment on record in the Government Data Base SPRS (Supplier Performance Risk System). This applies to organizations who do not provide commercial off-the-shelf (COTS) items. The rule focuses on DoD’s increased requirements for confirming that contractors are currently in compliance with and have implemented all 110 security controls in National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171.  There have been a number of cases of high-profile cyber incidents involving defense programs that requires suppliers in the Defense Industrial Base (DIB) proof of compliance and/or proof of advancing compliance.  CMMC is doing a phased to rollout that is expected to take up to 5-years. Until the complete roll-out, the interim rule is in effect.


DoD has interpreted “implement” to mean that a contractor must create a System Security Plan that explains whether the contractor is in compliance with each of the 110 security controls and a Plan of Action and Milestones (POA&M) that describes how and when the contractor will attain full compliance for any control that is incomplete. Incomplete controls are any control that there is no proof, evidence or artifact that can verify the control is adequately implemented.


What does this mean to suppliers within the DoD supply chain? The DoD is checking SPRS and any supplier on a new contract must have a current assessment ”fresher than 3-years old” backed by a gap analysis, System Security Plan (SSP) and Plan of Action and Milestones (POA&M) with actionable plans to become in compliant quickly. The DoD will perform Assessments (audits) of the information provided in SPRS for suppliers they consider are handling sensitive information that may be critical to the program.  Flow-downs to subcontractors, for non-COTS suppliers, must be enforced and those suppliers must post in SPRS as well. A contractor may not award a subcontract unless the supplier is in SPRS with a current assessment, and validation of an accompanying POA&M and SSP.

 

Procedures for Contract Awards:

  1. Contracting officer shall verify the summary level score of a current NIST SP 800-171 Assessment, for each covered contractor information system that is relevant to an offer, contract, task order, or delivery order posted in SPRS. Prior to:
  2. Awarding contracts, task orders or delivery order to an offeror or contractor that is required to implement NIST SP 800-171 in accordance with DFARS clause 252.204.7012: or
  3. Exercising an option period or extending the period of performance of a contract, task order or delivery order with a contractor that is required to implement NIST SP 800-171 in accordance with DFARS clause 252.204.7012.


How long you do you have? November 30, 2020 or within 30-days of your completed assessment to post in SPRS. After November 30, 2020, option-year exercises of an existing contract, require this as well. The key message prior to CMMC certification is that suppliers must be prepared for an audit and the self-assessment / attestation of compliance will be tested for accuracy. Act sooner than later as preparation and proof of compliance and have actionable remediation steps. This is not a simple paperwork exercise!


Assessment requirements (summary)

  1. Assessment is a review of SSP associated with the covered contractor information system(s)
  2. Conducted leveraging the DoD Assessment Methodology
  3. Preparation for a DoD Assessment
  4. Review Assessment
  5. Artifact review to verify documentation and implementation per the SSP

 

As with previous communications, falsifying records can result in different outcomes depending on the breach or loss of Controlled Unclassified Information (CUI). These include: Loss of contract, corrective action report, punitive damages to criminal prosecution. Remember compliance with NIST SP 800-171 and the future certification under CMMC, requires having all your documentation, technology, vulnerabilities and cyber-monitoring in place. You must have proof of compliance, manage the CUI access, understand threats, leaks, know when your under attack, be able to define if information has leaked from your company, identify the severity of a breach and be able to notify your prime contractor and the DoD of any breach within the notification period. In direct terms, understand your vulnerabilities, monitor for attacks, have control of all logs and external / internal threats and have an actionable model to stop data leakage from occurring in all areas of your business. Get help, be precise, and work with subject matter experts, real cybersecurity is above the common IT services paygrade.


If you have any questions, please reach out to our Team –[email protected]

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The Clock is Ticking for CMMC 2.0: Here’s Everything You Need to Know – START NOW

By Brian Berger • August 23, 2023
The Department of Defense (DoD) has formally presented the CMMC regulation for official evaluation, marking the start of its journey toward formal announcement. Every regulation proposed by the executive branch, including this one, undergoes scrutiny by OIRA, a division of the Office of Management and Budget (OMB). The significance of this step is that the previously mentioned "delays" in the CMMC process were due to the time taken for the DoD to forward the rule to OIRA. With this action now taken, the subsequent stages of the rulemaking procedure are underway. Nevertheless, due to the intricate nature of federal rulemaking, several more stages need to be navigated before the CMMC becomes a part of contracts. The following scenarios should be considered for preparation for compliance and certification for the Defense Industrial Base (DIB). Scenario 1: Proposed Rule Submission to OIRA: The Department of Defense (DoD) has officially submitted the CMMC rule for regulatory review to the Office of Information and Regulatory Affairs (OIRA). Review and Publication: After OIRA's review, which takes an average of 66 business days, the CMMC rule is expected to be published in late October 2023. Public Comment Period: A standard 60-day public comment period will follow, ending in December 2023. Finalization: The CMMC rule will be published as a "proposed rule", which means it will only become effective after the agency responds to public comments in a final rule. Based on historical data, the average time for DoD proposed rules to be published as final rules is 333 business days. This means the CMMC final rule is expected between February and April 2025 . Phased Roll-Out: The DoD plans a 3-year phased roll-out for CMMC contract clauses. Assuming the final rule is published in Q1 2025, all relevant DoD contracts will contain CMMC by 2028. Scenario 2: Interim Final Rule Immediate Effectiveness : If the CMMC rule is published as an "interim final rule", it will be effective before the agency responds to public comments . This means the rule would be in effect and appear in contracts in Q1 2024 . Rarity of Interim Final Rules: Such rules are rare and bypass the usual democratic process of "notice and comment" rulemaking. They are typically granted in urgent situations, like the need to enhance national security. So when should you start preparing? Before we start with the background and changes, let’s talk about the "Big Elephant” in the room. Clearly, the updated compliance and certification process developed by the DoD and the non-profit organization liaisons has been long overdue with a lot of anticipated deadlines that never materialized. And with the latest announcements it does seem to be mildly reminiscent of the movie comedy and colloquial meaning of Groundhog Day. Since the Library of Congress selected the film for preservation in the National Film Registry I found humor in relativity, not cynicism. Opinion: This is different and the information we have in the DoD supply chain must be protected from our adversaries. This is a serious issue and needs clear and precise guidelines as the supply chain will not spend money on the protection of the information that protects national security unless they must as it is deemed as a complex undertaking. That’s an unfortunate reality. We have seen the start and restart of the cyber programs for DoD for the past 5-years, what makes this different? The implementation of the CMMC rule in contracts will be phased in over a period of 3 years, with all relevant DoD Defense Industrial Base (DIB) contracts containing CMMC by 2028. For a company with 50-100 employees operating in the DoD supply chain, it takes an average of 12-18 months to prepare for assessment and audit for eventual certification, with certification being the ultimate requirement for compliance. Therefore, the time is now to start the process if you plan to hold government contracts in 2024/2025. There are also varied flow down requirements that need to also be taken into consideration. Understanding Plan of Action and Milestones (POAM) There is now the ability to present interim status vs 100% compliance as we have with the current DFARS and NIST requirements. These interim reports can be handled in the traditional manner by presenting a Plan of Action and Milestones (POAM) that have a less than 180-day completion date for allowed baseline gaps. Unallowed gaps will have a “No POAM” designation and need to be implemented. If you have any doubts, work with a highly skilled 3 rd party who has expertise in these standards and a track record of enabling comprehensive successful standards-based cyber programs. The information presented by the suppliers in POAM’s or claiming 100% compliance will be evaluated and can and will likely trigger audits if certain high-level cyber controls are not met or the 100% compliance score creates suspicion of a false claim. Be careful to present accurate and validated information. So, what does this all mean? You must be compliant with DFARS clause 252.204.7012 and NIST 800-171 today. This is a requirement of your current contracts, and the False Claims Act applies to all cyber compliance representations. If you are not compliant, you could be subject to civil penalties and criminal charges. You need to start preparing for CMMC 2.0 today. The deadline for the final rule is 18 months from now, and it will take an average company in the DoD supply chain 12-18 months to become assessment ready. Waiting is not an option. Waiting is a bad idea. Why you ask? It is very clear that most suppliers and Small and Medium Businesses are not cyber ready and nowhere near compliant with any cyber framework. The timeframe for a typical business to understand, develop and implement full compliance is more than 1-year assuming they have the skills and personnel to complete the objectives. CMMC 2.0 clearly aligns with DFARS and NIST, so it is the best way to protect your organization's sensitive data. Don't delay, start preparing today! *If you have any questions, please reach out to our experts – [email protected]
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