[Federal Register Volume 80, Number 165 (Wednesday, August 26, 2015)]
[Rules and Regulations]
[Pages 51739-51748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20870]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 202, 204, 212, 239, and 252

[Docket No. DARS-2015-0039]
RIN 0750-AI61


Defense Federal Acquisition Regulation Supplement: Network 
Penetration Reporting and Contracting for Cloud Services (DFARS Case 
2013-D018)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Interim rule.

-----------------------------------------------------------------------

SUMMARY: DoD is issuing an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement a section of the 
National Defense Authorization Act for Fiscal Year 2013 and a section 
of the National Defense Authorization Act for Fiscal Year 2015, both of 
which require contractor reporting on network penetrations. 
Additionally, this rule implements DoD policy on the purchase of cloud 
computing services.

DATES: Effective August 26, 2015.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before October 26, 2015 to be 
considered in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2013-D018, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2013-D018'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2013-D018.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2013-D018'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2013-D018 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Mr. 
Dustin Pitsch, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Mr. Dustin Pitsch, OUSD(AT&L)DPAP/
DARS, telephone 571-372-6090.

SUPPLEMENTARY INFORMATION: 

I. Background

    This interim rule requires contractors and subcontractors to report 
cyber incidents that result in an actual or potentially adverse effect 
on a covered contractor information system or covered defense 
information residing therein, or on a contractor's ability to provide 
operationally critical support. DoD is working to establish a single 
reporting mechanism for DoD contractor reporting of cyber incidents on 
unclassified information systems. This rule is intended to streamline 
the reporting process for DoD contractors and minimize duplicative 
reporting processes. Cyber incidents involving classified information 
on classified contractor systems will continue to be reported in 
accordance with the National Industrial Security Program Operating 
Manual (see DoD-M 5220.22 available at http://www.dtic.mil/whs/directives/corres/pdf/522022m.pdf).
    The rule revises the DFARS to implement section 941 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2013 (Pub. L. 
112-239) and section 1632 of the NDAA for FY 2015. Section 941 of the 
NDAA for FY 2013 requires cleared defense contractors to report 
penetrations of networks and information systems and allows DoD 
personnel access to equipment and information to assess the impact of 
reported penetrations. Section 1632 of the NDAA for FY 2015 requires 
that a contractor designated as operationally critical must report each 
time a cyber incident occurs on that contractor's network or 
information systems.
    In addition, this rule also implements DoD policies and procedures 
for use when contracting for cloud computing services. The DoD Chief 
Information Officer (CIO) issued a memo on December 15, 2014, entitled 
``Updated Guidance on the Acquisition and Use of Commercial Cloud 
Computing Services'' to clarify DoD guidance when acquiring commercial 
cloud services (See memo here: http://iase.disa.mil/cloud_security/Pages/docs.aspx). The DoD CIO also released a Cloud Computing Security 
Requirements Guide (SRG) Version 1, Release 1 on January 13, 2015, for 
cloud service providers to comply with when providing the DoD with 
cloud services (See SRG here: http://iase.disa.mil/cloud_security/Pages/index.aspx). This rule implements these new policies developed 
within the DoD CIO memo and the SRG in the DFARS to ensure uniform 
application when contracting for cloud services across the DoD. The 
combination of the two statutes as well as the cloud computing policy 
will serve to increase the cyber security requirements placed on DoD 
information in contractor systems and will help the DoD to mitigate the 
risks related to compromised information as well as gather information 
for future improvements in cyber security policy.

II. Discussion and Analysis

    To implement section 941 of the NDAA for FY 2013 and section 1632 
of the NDAA for FY 2015, an existing DFARS subpart and clause have been 
utilized and expanded upon, and a new provision and clause added. A new 
subpart, provision, and clause are added for the implementation of 
cloud contracting policies.
    (1) DFARS subpart 204.73 is modified to expand safeguarding and 
reporting policy to require protection of covered defense information, 
which includes controlled technical information, export controlled 
information, critical

[[Page 51740]]

information, and other information requiring protection by law, 
regulation, or Government-wide policy.
    (2) The clause at 252.204-7012 is renamed ``Safeguarding Covered 
Defense Information and Cyber Incident Reporting'' and the scope of the 
clause is expanded to cover the safeguarding of covered defense 
information and require contractors to report cyber incidents involving 
this new class of information as well as any cyber incident that may 
affect the ability to provide operationally critical support. The table 
of security controls based on National Institute of Standards and 
Technology (NIST) Special Publication (SP) 800-53 is replaced by NIST 
SP 800-171, entitled ``Protecting Controlled Unclassified Information 
in Nonfederal Information Systems and Organizations.'' NIST SP 800-171 
is a publication specifically tailored for use in protecting sensitive 
information residing in contractor information systems that refines the 
requirements from Federal Information Processing Standard (FIPS) 200 
and controls from NIST SP 800-53 and presents them in an easier to use 
format. In addition to being easier to use, NIST SP 800-171 greatly 
increases the protections of Government information in contractor 
information systems, while simultaneously reducing the burden placed on 
the contractor by eliminating Federal-centric processes and 
requirements currently embedded in NIST SP 800-53. For example, a task 
analysis comparing the requirements of NIST SP 800-171 to the current 
table of security controls (based on NIST SP 800-53) demonstrates a 
reduction in required tasks by 30 percent.
    (3) A new provision at 252.204-7008, Compliance with Safeguarding 
Covered Defense Information Controls, is added to ensure that offerors 
are aware of the requirements of clause 252.204-7012 and allow for a 
process to explain; (i) how alternative, but equally effective, 
security measures can compensate for the inability to satisfy a 
particular requirement; or (ii) why a particular requirement is not 
applicable.
    (4) A new clause at 252.204-7009, Limitations on the Use and 
Disclosure of Third-Party Contractor Reported Cyber Incident 
Information, is added to protect information submitted to DoD in 
response to a cyber incident.
    (5) DFARS subpart 239.76 is added to implement policy for the 
acquisition of cloud computing services.
    (6) A new provision at 252.239-7009, Representation of Use of Cloud 
Computing, is added to allow the offeror to represent their intention 
to utilize cloud computing services in performance of the contract or 
not.
    (7) A new clause at 252.239-7010, Cloud Computing Services, is 
added to provide standard contract language for the acquisition of 
cloud computing services; including access, security and reporting 
requirements.
    (8) The term ``cyber incident,'' is removed from the definitions 
section of subpart 204.73 and is now defined at 202.1. The terms 
``compromise'' and ``media'' are also added to 202.1, because the terms 
are used in parts 204 and 239.
    (9) The new clauses and provisions added by this rule are added to 
the list of solicitation provisions and contract clauses for the 
acquisition of commercial items at 212.301(f).
    This rule is part of DoD's retrospective plan, completed in August 
2011, under Executive Order 13563, ``Improving Regulation and 
Regulatory Review.'' DoD's full plan and updates can be accessed at: 
http://www.regulations.gov/#!docketDetail;D=DOD-2011-OS-0036.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is a significant regulatory action and, therefore, was subject to 
review under section 6(b) of E.O. 12866, Regulatory Planning and 
Review, dated September 30, 1993. This rule is not a major rule under 5 
U.S.C. 804.

IV. Regulatory Flexibility Act

    DoD expects that this interim rule may have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act 5 U.S.C. 601, et seq. Therefore, an 
initial regulatory flexibility analysis has been prepared and is 
summarized as follows:
    This rule expands on the existing information safeguarding policies 
in the DFARS and requires contractors to report cyber incidents to the 
Government in a broader scope of circumstances.
    The objectives of this rule are to improve information security for 
DoD information stored on or transiting contractor systems as well as 
in a cloud environment. The rule implements section 941 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2013 (Pub. L. 
112-239), section 1632 of the NDAA for FY 2015, and DoD CIO policy for 
the acquisition of cloud computing services. The benefits of the 
increased security requirements implemented through this rule are that 
more information will be protected from release, inadvertently or 
through malicious intent. Additional protection for DoD information 
will assist with a greater overall level of national security across 
the board.
    This rule will apply to all contractors with covered defense 
information transiting their information systems. DoD estimates that 
this rule may apply to 10,000 contractors and that less than half of 
those are small businesses.
    This rule requires that contractors report cyber incidents to the 
DoD. Of the required reporting fields several of them will likely 
require an information technology expert to provide information 
describing the cyber incident or at least to determine what information 
was affected, to be noted in the report.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    No significant alternatives, that would minimize the economic 
impact of the rule on small entities, were identified.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2013-D018), in 
correspondence.

V. Paperwork Reduction Act

    This rule affects the information collection requirements in the 
provisions at DFARS 252.204-7012, currently approved under OMB Control 
Number 0704-0478, titled ``Enhanced Safeguarding and Cyber Incident 
Reporting of Unclassified DoD Information Within Industry,'' in 
accordance with the Paperwork Reduction Act (44 U.S.C. chapter 35). The 
rule revises the collection reporting requirements based on--
     Changes to DFARS clause 252.204-7012, which is now titled 
``Safeguarding Covered Defense Information and Cyber Incident 
Reporting'';
     A new DFARS provision 252.204-7008, Compliance with 
Safeguarding Covered Defense Information Controls;

[[Page 51741]]

     A new DFARS provision at 252.239-7009, Representation of 
Use of Cloud Computing; and
     A new DFARS clause 252.239-7010, Cloud Computing Services.
    The revisions to the information collection requirements contained 
in this rule require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). OMB 
has provided emergency clearance for the revision of 0704-0478. This 
collection is being revised to reflect the expanded contractually 
mandated cyber incident reporting requirements as well as contracting 
for cloud services, which are covered by the DFARS clause and provision 
collection requirements as discussed in the beginning of this section.
    Public reporting burden for this collection is estimated to average 
approximately 4 hours per response, including the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. The annual reporting burden is estimated as 
follows:
    Respondents: 10,954.
    Responses per respondent: 5.5 approximately.
    Total annual responses: 60,494.
    Preparation hours per response: 4.15 hours approximately.
    Total response Burden Hours: 250,840.
    Request for Comments Regarding Paperwork Burden. Public comments 
are particularly invited on: Whether this collection of information is 
necessary for the proper performance of functions of the DFARS, and 
will have practical utility; whether our estimate of the public burden 
of this collection of information is accurate, and based on valid 
assumptions and methodology; ways to enhance the quality, utility, and 
clarity of the information to be collected; and ways in which we can 
minimize the burden of the collection of information on those who are 
to respond, through the use of appropriate technological collection 
techniques or other forms of information technology.
    Written comments and recommendations including suggestions for 
reducing this burden, should be sent to Ms. Jasmeet Seehra at the 
Office of Management and Budget, Desk Officer for DoD, Room 10236, New 
Executive Office Building, Washington, DC 20503, or email 
[email protected], with a copy to the Defense Acquisition 
Regulations System, Attn: Mr. Dustin Pitsch, OUSD (AT&L) DPAP/DARS, 
Room 3B941, 3060 Defense Pentagon, Washington, DC 20301-3060, or email 
[email protected]. Comments should be received not later than 60 days 
after the date of publication in the Federal Register. You may also 
submit comments, identified by docket number and title, by the 
following method: Federal Rulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. 
All submissions received must include the agency name, docket number 
and title for this Federal Register document. The general policy for 
comments and other submissions from members of the public is to make 
these submissions available for public viewing on the Internet at 
http://www.regulations.gov as they are received without change, 
including any personal identifiers or contact information.
    There are two other OMB Control Numbers currently in place for 
information collection requirements associated with the overall cyber 
reporting program. They are discussed below and are not being changed 
as a result of this rule.
    OMB Control Number 0704-0489, Defense Industrial Base Voluntary 
Cyber Security/Information Assurance (DIB CS/IA) Cyber Incident 
Reporting, (regulations codified under Title 32 of the CFR) supports 
``voluntary'' reporting and covers the online collection medium, a 
Defense Industrial Base/Information Assurance Incident Collection 
database, which is an online repository used for both voluntary 
reporting and reporting that is contractually mandated under the DFARS 
clauses and provisions.
    OMB Control Number 0704-0490, Defense Industrial Base Voluntary 
Cyber Security/Information Assurance (DIB CS/IA) Points of Contact 
(POC) Information, (regulations codified under Title 32 of the CFR) 
addresses the application process for participating companies. OMB 
Control Number 0704-0490 involves collection of personally identifiable 
information and is supported by a System of Records Notices for the 
cyber incident reporting program. The Privacy Act Statement of Records 
Notice (SORN) system identifier, DCIO 01, Defense Industrial Base (DIB) 
Cybersecurity Records, includes stipulations related to the release and 
disclosure of information collected. An update was published in the 
Federal Register on May 21, 2015, at 80 FR 29315 (see http://www.gpo.gov/fdsys/pkg/FR-2015-05-21/pdf/2015-12324.pdf).

VI. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that urgent and compelling reasons exist to promulgate this 
interim rule without prior opportunity for public comment. This action 
is necessary because of the urgent need to protect covered defense 
information and gain awareness of the full scope of cyber incidents 
being committed against defense contractors. The proliferation of 
information technology and increased information access allowed by 
cloud computing environments has also increased the vulnerability of 
DoD information via attacks on its systems and networks and those of 
DoD contractors. The combination of the two statutes as well as 
implementation of the DoD cloud computing policy will serve to increase 
the cyber security requirements placed on DoD information on contractor 
systems and will help the DoD to mitigate the risks related to 
compromised information as well as gather information, through the 
reporting requirements, for future improvements in cyber security 
policy.
    This rule expands upon the existing coverage in the DFARS, which 
previously only covered the protection of and reporting of incidents 
affecting the controlled technical information, but not other incidents 
within the contractor system. This interim rule expands the protection 
and reporting to entire contractor systems (i.e., ``covered contractor 
information system'') as well as a new type of information ``covered 
defense information'' which includes controlled technical information 
as a subset. This interim rule increases the number of circumstances 
where contractors must implement security controls as well as when they 
must report incidents.
    Recent high-profile breaches of Federal information show the need 
to ensure that information security protections are clearly, 
effectively, and consistently addressed in contracts. Failure to 
implement this rule may cause harm to the Government through the 
compromise of covered defense information or other Government data, or 
the loss of operationally critical support capabilities, which could 
directly impact national security. However, pursuant to 41 U.S.C. 1707 
and FAR 1.501-3(b), DoD will consider public comments received in 
response to this interim rule in the formation of the final rule.

[[Page 51742]]

List of Subjects in 48 CFR Parts 202, 204, 212, 239, and 252

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 202, 204, 212, 239, and 252 are amended as 
follows:

0
1. The authority citation for 48 CFR 202, 204, 212, and 252 continues 
to read as follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

PART 202--DEFINITIONS OF WORDS AND TERMS

0
2. Amend section 202.101 by adding, in alphabetical order, the 
definitions for ``compromise,'' ``cyber incident,'' and ``media'' to 
read as follows:


202.101  Definitions.

    Compromise means disclosure of information to unauthorized persons, 
or a violation of the security policy of a system, in which 
unauthorized intentional or unintentional disclosure, modification, 
destruction, or loss of an object, or the copying of information to 
unauthorized media may have occurred.
* * * * *
    Cyber incident means actions taken through the use of computer 
networks that result in a compromise or an actual or potentially 
adverse effect on an information system and/or the information residing 
therein.
* * * * *
    Media, as used in parts 204 and 239, means physical devices or 
writing surfaces including, but not limited to, magnetic tapes, optical 
disks, magnetic disks, large-scale integration memory chips, and 
printouts onto which covered defense information is recorded, stored, 
or printed within a covered contractor information system.
* * * * *

PART 204--ADMINISTRATIVE MATTERS

0
3. Revise subpart 204.73 heading to read as follows:

Subpart 204.73--Safeguarding Covered Defense Information and Cyber 
Incident Reporting

0
4. Revise section 204.7300 to read as follows:


204.7300  Scope.

    (a) This subpart applies to contracts and subcontracts requiring 
contractors and subcontractors to safeguard covered defense information 
that resides in or transits through covered contractor information 
systems by applying specified network security controls. It also 
requires reporting of cyber incidents.
    (b) This subpart does not abrogate any other requirements regarding 
contractor physical, personnel, information, technical, or general 
administrative security operations governing the protection of 
unclassified information, nor does it affect requirements of the 
National Industrial Security Program.

0
5. Amend section 204.7301 by--
0
a. Removing the definition of ``cyber incident'';
0
b. Adding, in alphabetical order, the definitions for ``contractor 
attributional/proprietary information,'' ``covered contractor 
information system,'' ``covered defense information,'' ``information 
system,'' ``operationally critical support,'' and ``rapid(ly) 
report(ing)''; and
0
c. Revising the definition for ``controlled technical information''.
    The additions and revision read as follows:


204.7301  Definitions.

* * * * *
    Contractor attributional/proprietary information means information 
that identifies the contractor(s), whether directly or indirectly, by 
the grouping of information that can be traced back to the 
contractor(s) (e.g., program description, facility locations), 
personally identifiable information, as well as trade secrets, 
commercial or financial information, or other commercially sensitive 
information that is not customarily shared outside of the company.
    Controlled technical information means technical information with 
military or space application that is subject to controls on the 
access, use, reproduction, modification, performance, display, release, 
disclosure, or dissemination. Controlled technical information would 
meet the criteria, if disseminated, for distribution statements B 
through F using the criteria set forth in DoD Instruction 5230.24, 
Distribution Statements on Technical Documents. The term does not 
include information that is lawfully publicly available without 
restrictions.
    Covered contractor information system means an information system 
that is owned, or operated by or for, a contractor and that processes, 
stores, or transmits covered defense information.
    Covered defense information means unclassified information that--
    (1) Is--
    (i) Provided to the contractor by or on behalf of DoD in connection 
with the performance of the contract; or
    (ii) Collected, developed, received, transmitted, used, or stored 
by or on behalf of the contractor in support of the performance of the 
contract; and
    (2) Falls in any of the following categories:
    (i) Controlled technical information.
    (ii) Critical information (operations security). Specific facts 
identified through the Operations Security process about friendly 
intentions, capabilities, and activities vitally needed by adversaries 
for them to plan and act effectively so as to guarantee failure or 
unacceptable consequences for friendly mission accomplishment (part of 
Operations Security process).
    (iii) Export control. Unclassified information concerning certain 
items, commodities, technology, software, or other information whose 
export could reasonably be expected to adversely affect the United 
States national security and nonproliferation objectives. To include 
dual use items; items identified in export administration regulations, 
international traffic in arms regulations, and munitions list; license 
applications; and sensitive nuclear technology information.
    (iv) Any other information, marked or otherwise identified in the 
contract, that requires safeguarding or dissemination controls pursuant 
to and consistent with law, regulations, and Governmentwide policies 
(e.g., privacy, proprietary business information).
    Information system means a discrete set of information resources 
organized for the collection, processing, maintenance, use, sharing, 
dissemination, or disposition of information.
    Operationally critical support means supplies or services 
designated by the Government as critical for airlift, sealift, 
intermodal transportation services, or logistical support that is 
essential to the mobilization, deployment, or sustainment of the Armed 
Forces in a contingency operation.
    Rapid(ly) report(ing) means within 72 hours of discovery of any 
cyber incident.
* * * * *

0
6. Revise section 204.7302 to read as follows:


204.7302  Policy.

    (a) DoD and its contractors and subcontractors will provide 
adequate security to safeguard covered defense information on their 
unclassified information systems from unauthorized access and 
disclosure.

[[Page 51743]]

    (1) Contractors and subcontractors are required to submit to DoD--
    (i) A cyber incident report;
    (ii) Malicious software, if detected and isolated; and
    (iii) Media (or access to covered contractor information systems 
and equipment) upon request.
    (2) Contracting officers shall refer to PGI 204.7303-4(a)(1)(ii) 
for instructions on contractor submissions of media and malicious 
software.
    (b) Subcontractors are required to rapidly report cyber incidents 
directly to DoD at http://dibnet.dod.mil and to the prime contractor. 
Subcontractors shall provide the incident report number from DoD to the 
prime contractor. Lower-tier subcontractors are required to likewise 
report the same information to their higher-tier subcontractor, until 
the prime contractor is reached.
    (c) The Government acknowledges that information shared by the 
contractor under these procedures may include contractor attributional/
proprietary information that is not customarily shared outside of the 
company, and that the unauthorized use or disclosure of such 
information could cause substantial competitive harm to the contractor 
that reported the information. The Government shall protect against the 
unauthorized use or release of information that includes contractor 
attributional/proprietary information.
    (d) A cyber incident that is reported by a contractor or 
subcontractor shall not, by itself, be interpreted as evidence that the 
contractor or subcontractor has failed to provide adequate information 
safeguards for covered defense information on their unclassified 
information systems, or has otherwise failed to meet the requirements 
of the clause at 252.204-7012. When a cyber incident is reported, the 
contracting officer shall consult with the DoD component CIO/cyber 
security office prior to assessing contractor compliance (see PGI 
204.7303-3(a)(2)). The contracting officer shall consider such cyber 
incidents in the context of an overall assessment of a contractor's 
compliance with the requirements of the clause at 252.204-7012.
    (e) Support services contractors directly supporting Government 
activities related to safeguarding covered defense information and 
cyber incident reporting (e.g., providing forensic analysis services, 
damages assessment services, or other services that require access to 
data from another contractor) are subject to restrictions on use and 
disclosure.


204.7303  [Amended]

0
7. Amend section 204.7303 by removing ``unclassified controlled 
technical information'' and adding ``covered defense information'' in 
its place.

0
8. Revise section 204.7304 to read as follows:


204.7304  Solicitation provision and contract clauses.

    (a) Use the provision at 252.204-7008, Compliance with Safeguarding 
Covered Defense Information Controls, in all solicitations and 
contracts, including solicitations and contracts using FAR part 12 
procedures for the acquisition of commercial items.
    (b) Use the clause at 252.204-7009, Limitations on the Use or 
Disclosure of Third-Party Contractor Information, in all solicitations 
and contracts for services that include support for the Government's 
activities related to safeguarding covered defense information and 
cyber incident reporting.
    (c) Use the clause at 252.204-7012, Safeguarding Covered Defense 
Information and Cyber Incident Reporting, in all solicitations and 
contracts, including solicitations and contracts using FAR part 12 
procedures for the acquisition of commercial items.

PART 212--ACQUISITION OF COMMERCIAL ITEM

0
9. Amend section 212.301 by--
0
a. Redesignating paragraphs (f)(ii)(A) through (E) as paragraphs 
(f)(ii)(C) through (G);
0
b. Adding new paragraphs (f)(ii)(A) and (B);
0
c. Revising the newly redesignated (f)(ii)(D);
0
d. Redesignating paragraphs (f)(xv)(A) and (B) as paragraphs (f)(xv)(C) 
and (D);
0
e. Adding new paragraphs (f)(xv)(A) and (B).
    The additions and revision read as follows:


212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (f) * * *
    (ii) * * *
    (A) Use the provision at 252.204-7008 Compliance with Safeguarding 
Covered Defense Information Controls, as prescribed in 204.7304(b).
    (B) Use the clause at 252.204-7009, Limitations on the Use or 
Disclosure of Third-Party Contractor Information, as prescribed in 
204.7304(c).
* * * * *
    (D) Use the clause at 252.204-7012, Safeguarding Covered Defense 
Information and Cyber Incident Reporting, as prescribed in 204.7304(a).
* * * * *
    (xv) * * *
    (A) Use the provision 252.239-7009, Representation of Use of Cloud 
Computing, as prescribed in 239.7603(a).
    (B) Use the clause 252.239-7010, Cloud Computing Services, as 
prescribed in 239.7603(b).
* * * * *

PART 239--ACQUISITION OF INFORMATION TECHNOLOGY

0
10. The authority citation for 48 CFR part 239 is revised to read as 
follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.


0
11. Add subpart 239.76 to read as follows:
Subpart 239.76--Cloud Computing
Sec.
239.7600 Scope of subpart.
239.7601 Definitions.
239.7602 Policy and responsibilities.
239.7602-1 General.
239.7602-2 Required storage of data within the United States or 
outlying areas.
239.7603 Solicitation provision and contract clause.

Subpart 239.76--Cloud Computing


239.7600  Scope of subpart.

    This subpart prescribes policies and procedures for the acquisition 
of cloud computing services.


239.7601  Definitions.

    As used in this subpart--
    Authorizing official, as described in DoD Instruction 8510.01, Risk 
Management Framework (RMF) for DoD Information Technology (IT), means 
the senior Federal official or executive with the authority to formally 
assume responsibility for operating an information system at an 
acceptable level of risk to organizational operations (including 
mission, functions, image, or reputation), organizational assets, 
individuals, other organizations, and the Nation.
    Cloud computing means a model for enabling ubiquitous, convenient, 
on-demand network access to a shared pool of configurable computing 
resources (e.g., networks, servers, storage, applications, and 
services) that can be rapidly provisioned and released with minimal 
management effort or service provider interaction. This includes other 
commercial terms, such as on-demand self-service, broad network access, 
resource pooling, rapid elasticity, and measured service. It also 
includes commercial offerings for

[[Page 51744]]

software-as-a-service, infrastructure-as-a-service, and platform-as-a-
service.
    Government data means any information, document, media, or machine 
readable material regardless of physical form or characteristics, that 
is created or obtained by the Government in the course of official 
Government business.
    Government-related data means any information, document, media, or 
machine readable material regardless of physical form or 
characteristics that is created or obtained by a contractor through the 
storage, processing, or communication of Government data. This does not 
include a contractor's business records (e.g., financial records, legal 
records, etc.) or data such as operating procedures, software coding, 
or algorithms that are not uniquely applied to the Government data.
    Spillage means a security incident that results in the transfer of 
classified or controlled unclassified information onto an information 
system not accredited (i.e., authorized) for the appropriate security 
level.


239.7602  Policy and responsibilities.


239.7602-1  General.

    (a) Generally, the DoD shall acquire cloud computing services using 
commercial terms and conditions that are consistent with Federal law, 
and an agency's needs, including those requirements specified in this 
subpart. Some examples of commercial terms and conditions are license 
agreements, End User License Agreements (EULAs), Terms of Service 
(TOS), or other similar legal instruments or agreements. Contracting 
officers shall incorporate any applicable service provider terms and 
conditions into the contract by attachment or other appropriate 
mechanism. Contracting officers shall carefully review commercial terms 
and conditions and consult counsel to ensure these are consistent with 
Federal law, regulation, and the agency's needs.
    (b) The contracting officer shall only award a contract to acquire 
cloud computing services from any cloud service provider (e.g., 
contractor or subcontractor, regardless of tier) that has been granted 
provisional authorization by Defense Information Systems Agency, at the 
level appropriate to the requirement, to provide the relevant cloud 
computing services in accordance with the Cloud Computing Security 
Requirements Guide (SRG) (version in effect at the time the 
solicitation is issued or as authorized by the contracting officer) 
found at http://iase.disa.mil/cloud_security/Pages/index.aspx. 
Provisional authorization processes are also available at the SRG Web 
site. Cloud service providers with existing provisional authorization 
are listed at http://www.disa.mil/Computing/Cloud-Services/Cloud-Support.
    (c) When contracting for cloud computing services, the contracting 
officer shall ensure the following information is provided in the 
purchase request--
    (1) Government data and Government-related data descriptions;
    (2) Data ownership, licensing, delivery and disposition 
instructions specific to the relevant types of Government data and 
Government-related data (e.g., CDRL, SOW task, line item). Disposition 
instructions shall provide for the transition of data in commercially 
available, or open and non-proprietary format (and for permanent 
records, in accordance with disposition guidance issued by National 
Archives and Record Administration);
    (3) Appropriate limitations and requirements regarding contractor 
and third-party access to, and use and disclosure of, Government data 
and Government-related data;
    (4) Appropriate requirements to support applicable inspection, 
audit, investigation, or other similar authorized activities specific 
to the relevant types of Government data and Government-related data, 
or specific to the type of cloud computing services being acquired;
    (5) Appropriate requirements to support and cooperate with 
applicable system-wide search and access capabilities for inspections, 
audits, investigations, litigation, eDiscovery, records management 
associated with the agency's retention schedules, and similar 
authorized activities; and
    (6) A requirement for the contractor to coordinate with the 
responsible Government official designated by the contracting officer, 
in accordance with agency procedures, to respond to any spillage 
occurring in connection with the cloud computing services being 
provided.


239.7602-2   Required storage of data within the United States or 
outlying areas.

    (a) Cloud computing service providers are required to maintain 
within the 50 states, the District of Columbia, or outlying areas of 
the United States, all Government data that is not physically located 
on DoD premises, unless otherwise authorized by the authorizing 
official, as described in DoD Instruction 8510.01, Risk Management 
Framework (RMF) for DoD Information Technology (IT), in accordance with 
the SRG.
    (b) The contracting officer shall provide written notification to 
the contractor when the contractor is permitted to maintain Government 
data at a location outside the 50 States, the District of Columbia, and 
outlying areas of the United States.


239.7603  Solicitation provision and contract clause.

    (a) Use the provision at 252.239-7009, Representation of Use of 
Cloud Computing, in solicitations, including solicitations using FAR 
part 12 procedures for the acquisition of commercial item, for 
information technology services.
    (b) Use the clause at 252.239-7010, Cloud Computing Services, in 
solicitations and contracts, including solicitations and contracts 
using FAR part 12 procedures for the acquisition of commercial item, 
for information technology services.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
12. Add section 252.204-7008 to read as follows:


252.204-7008  Compliance with Safeguarding Covered Defense Information 
Controls.

    As prescribed in 204.7304(a), use the following provision:

Compliance With Safeguarding Covered Defense Information Controls (Aug 
2015)

    (a) Definitions. As used in this provision--
    Controlled technical information, covered contractor information 
system, and covered defense information are defined in clause 
252.204-7012, Safeguarding Covered Defense Information and Cyber 
Incident Reporting.
    (b) The security requirements required by contract clause 
252.204-7012, Covered Defense Information and Cyber Incident 
Reporting, shall be implemented for all covered defense information 
on all covered contractor information systems that support the 
performance of this contract.
    (c) If the Offeror proposes to deviate from any of the security 
requirements in National Institute of Standards and Technology 
(NIST) Special Publication (SP) 800-171, ``Protecting Controlled 
Unclassified Information in Nonfederal Information Systems and 
Organizations, http://dx.doi.org/10.6028/NIST.SP.800-171 that is in 
effect at the time the solicitation is issued or as authorized by 
the Contracting Officer, the Offeror shall submit to the Contracting 
Officer, for consideration by the DoD CIO, a written explanation 
of--
    (1) Why a particular security requirement is not applicable; or
    (2) How an alternative but equally effective, security measure 
is used to compensate for the inability to satisfy a

[[Page 51745]]

particular requirement and achieve equivalent protection.
    (d) An authorized representative of the DoD CIO will approve or 
disapprove offeror requests to deviate from NIST SP 800-171 
requirements in writing prior to contract award. Any approved 
deviation from NIST SP 800-171 shall be incorporated into the 
resulting contract.


(End of provision)

0
13. Add section 252.204-7009 to read as follows:


252.204-7009  Limitations on the Use or Disclosure of Third-Party 
Contractor Reported Cyber Incident Information.

    As prescribed in 204.7304(b), use the following clause:

Limitations on the Use or Disclosure of Third-Party Contractor Reported 
Cyber Incident Information (AUG 2015)

    (a) Definitions. As used in this clause--
    Controlled technical information means technical information 
with military or space application that is subject to controls on 
the access, use, reproduction, modification, performance, display, 
release, disclosure, or dissemination. Controlled technical 
information would meet the criteria, if disseminated, for 
distribution statements B through F using the criteria set forth in 
DoD Instruction 5230.24, Distribution Statements on Technical 
Documents. The term does not include information that is lawfully 
publicly available without restrictions.
    Covered defense information means unclassified information 
that--
    (1) Is--
    (i) Provided to the contractor by or on behalf of DoD in 
connection with the performance of the contract; or
    (ii) Collected, developed, received, transmitted, used, or 
stored by or on behalf of the contractor in support of the 
performance of the contract; and
    (2) Falls in any of the following categories:
    (i) Controlled technical information.
    (ii) Critical information (operations security). Specific facts 
identified through the Operations Security process about friendly 
intentions, capabilities, and activities vitally needed by 
adversaries for them to plan and act effectively so as to guarantee 
failure or unacceptable consequences for friendly mission 
accomplishment (part of Operations Security process).
    (iii) Export control. Unclassified information concerning 
certain items, commodities, technology, software, or other 
information whose export could reasonably be expected to adversely 
affect the United States national security and nonproliferation 
objectives. To include dual use items; items identified in export 
administration regulations, international traffic in arms 
regulations and munitions list; license applications; and sensitive 
nuclear technology information.
    (iv) Any other information, marked or otherwise identified in 
the contract, that requires safeguarding or dissemination controls 
pursuant to and consistent with law, regulations, and Governmentwide 
policies (e.g., privacy, proprietary business information).
    Cyber incident means actions taken through the use of computer 
networks that result in a compromise or an actual or potentially 
adverse effect on an information system and/or the information 
residing therein.
    (b) Restrictions. The Contractor agrees that the following 
conditions apply to any information it receives or creates in the 
performance of this contract that is information obtained from a 
third-party's reporting of a cyber incident pursuant to DFARS clause 
252.204-7012, Safeguarding Covered Defense Information and Cyber 
Incident Reporting (or derived from such information obtained under 
that clause):
    (1) The Contractor shall access and use the information only for 
the purpose of furnishing advice or technical assistance directly to 
the Government in support of the Government's activities related to 
clause 252.204-7012, and shall not be used for any other purpose.
    (2) The Contractor shall protect the information against 
unauthorized release or disclosure.
    (3) The Contractor shall ensure that its employees are subject 
to use and non-disclosure obligations consistent with this clause 
prior to the employees being provided access to or use of the 
information.
    (4) The third-party contractor that reported the cyber incident 
is a third-party beneficiary of the non-disclosure agreement between 
the Government and Contractor, as required by paragraph (b)(3) of 
this clause.
    (5) A breach of these obligations or restrictions may subject 
the Contractor to--
    (i) Criminal, civil, administrative, and contractual actions in 
law and equity for penalties, damages, and other appropriate 
remedies by the United States; and
    (ii) Civil actions for damages and other appropriate remedies by 
the third party that reported the cyber incident, as a third party 
beneficiary of this clause.
    (c) Subcontracts. The Contractor shall include the substance of 
this clause, including this paragraph (c), in all subcontracts for 
services that include support for the Government's activities 
related to safeguarding covered defense information and cyber 
incident reporting, including subcontracts for commercial items.


(End of clause)

0
14. Revise section 252.204-7012 to read as follows:


252.204-7012  Safeguarding Covered Defense Information and Cyber 
Incident Reporting.

    As prescribed in 204.7304c, use the following clause:

Safeguarding Covered Defense Information and Cyber Incident Reporting 
(AUG 2015)

    (a) Definitions. As used in this clause--
    Adequate security means protective measures that are 
commensurate with the consequences and probability of loss, misuse, 
or unauthorized access to, or modification of information.
    Compromise means disclosure of information to unauthorized 
persons, or a violation of the security policy of a system, in which 
unauthorized intentional or unintentional disclosure, modification, 
destruction, or loss of an object, or the copying of information to 
unauthorized media may have occurred.
    Contractor attributional/proprietary information means 
information that identifies the contractor(s), whether directly or 
indirectly, by the grouping of information that can be traced back 
to the contractor(s) (e.g., program description, facility 
locations), personally identifiable information, as well as trade 
secrets, commercial or financial information, or other commercially 
sensitive information that is not customarily shared outside of the 
company.
    Contractor information system means an information system 
belonging to, or operated by or for, the Contractor.
    Controlled technical information means technical information 
with military or space application that is subject to controls on 
the access, use, reproduction, modification, performance, display, 
release, disclosure, or dissemination. Controlled technical 
information would meet the criteria, if disseminated, for 
distribution statements B through F using the criteria set forth in 
DoD Instruction 5230.24, Distribution Statements on Technical 
Documents. The term does not include information that is lawfully 
publicly available without restrictions.
    Covered contractor information system means an information 
system that is owned, or operated by or for, a contractor and that 
processes, stores, or transmits covered defense information.
    Covered defense information means unclassified information 
that--
    (i) Is--
    (A) Provided to the contractor by or on behalf of DoD in 
connection with the performance of the contract; or
    (B) Collected, developed, received, transmitted, used, or stored 
by or on behalf of the contractor in support of the performance of 
the contract; and
    (ii) Falls in any of the following categories:
    (A) Controlled technical information.
    (B) Critical information (operations security). Specific facts 
identified through the Operations Security process about friendly 
intentions, capabilities, and activities vitally needed by 
adversaries for them to plan and act effectively so as to guarantee 
failure or unacceptable consequences for friendly mission 
accomplishment (part of Operations Security process).
    (C) Export control. Unclassified information concerning certain 
items, commodities, technology, software, or other information whose 
export could reasonably be expected to adversely affect the United 
States national security and nonproliferation objectives. To include 
dual use items; items identified in export administration 
regulations, international traffic in arms regulations and munitions 
list; license applications; and sensitive nuclear technology 
information.
    (D) Any other information, marked or otherwise identified in the 
contract, that requires safeguarding or dissemination

[[Page 51746]]

controls pursuant to and consistent with law, regulations, and 
Governmentwide policies (e.g., privacy, proprietary business 
information).
    Cyber incident means actions taken through the use of computer 
networks that result in an actual or potentially adverse effect on 
an information system and/or the information residing therein.
    Forensic analysis means the practice of gathering, retaining, 
and analyzing computer-related data for investigative purposes in a 
manner that maintains the integrity of the data.
    Malicious software means computer software or firmware intended 
to perform an unauthorized process that will have adverse impact on 
the confidentiality, integrity, or availability of an information 
system. This definition includes a virus, worm, Trojan horse, or 
other code-based entity that infects a host, as well as spyware and 
some forms of adware.
    Media means physical devices or writing surfaces including, but 
is not limited to, magnetic tapes, optical disks, magnetic disks, 
large-scale integration memory chips, and printouts onto which 
information is recorded, stored, or printed within an information 
system.
    Operationally critical support means supplies or services 
designated by the Government as critical for airlift, sealift, 
intermodal transportation services, or logistical support that is 
essential to the mobilization, deployment, or sustainment of the 
Armed Forces in a contingency operation.
    Rapid(ly) report(ing) means within 72 hours of discovery of any 
cyber incident.
    Technical information means technical data or computer software, 
as those terms are defined in the clause at DFARS 252.227-7013, 
Rights in Technical Data-Non Commercial Items, regardless of whether 
or not the clause is incorporated in this solicitation or contract. 
Examples of technical information include research and engineering 
data, engineering drawings, and associated lists, specifications, 
standards, process sheets, manuals, technical reports, technical 
orders, catalog-item identifications, data sets, studies and 
analyses and related information, and computer software executable 
code and source code.
    (b) Adequate security. The Contractor shall provide adequate 
security for all covered defense information on all covered 
contractor information systems that support the performance of work 
under this contract. To provide adequate security, the Contractor 
shall--
    (1) Implement information systems security protections on all 
covered contractor information systems including, at a minimum--
    (i) For covered contractor information systems that are part of 
an Information Technology (IT) service or system operated on behalf 
of the Government--
    (A) Cloud computing services shall be subject to the security 
requirements specified in the clause 252.239-7010, Cloud Computing 
Services, of this contract; and
    (B) Any other such IT service or system (i.e., other than cloud 
computing) shall be subject to the security requirements specified 
elsewhere in this contract; or
    (ii) For covered contractor information systems that are not 
part of an IT service of system operated on behalf of the Government 
and therefore are not subject to the security requirement specified 
at paragraph (b)(1)(i) of this clause--
    (A) The security requirements in National Institute of Standards 
and Technology (NIST) Special Publication (SP) 800-171, ``Protecting 
Controlled Unclassified Information in Nonfederal Information 
Systems and Organizations, http://dx.doi.org/10.6028/NIST.SP.800-171 
that is in effect at the time the solicitation is issued or as 
authorized by the Contracting Officer; or
    (B) Alternative but equally effective security measures used to 
compensate for the inability to satisfy a particular requirement and 
achieve equivalent protection approved in writing by an authorized 
representative of the DoD CIO prior to contract award; and
    (2) Apply other security measures when the Contractor reasonably 
determines that such measures, in addition to those identified in 
paragraph (b)(1) of this clause, may be required to provide adequate 
security in a dynamic environment based on an assessed risk or 
vulnerability.
    (c) Cyber incident reporting requirement.
    (1) When the Contractor discovers a cyber incident that affects 
a covered contractor information system or the covered defense 
information residing therein, or that affects the contractor's 
ability to perform the requirements of the contract that are 
designated as operationally critical support, the Contractor shall--
    (i) Conduct a review for evidence of compromise of covered 
defense information, including, but not limited to, identifying 
compromised computers, servers, specific data, and user accounts. 
This review shall also include analyzing covered contractor 
information system(s) that were part of the cyber incident, as well 
as other information systems on the Contractor's network(s), that 
may have been accessed as a result of the incident in order to 
identify compromised covered defense information, or that affect the 
Contractor's ability to provide operationally critical support; and
    (ii) Rapidly report cyber incidents to DoD at http://dibnet.dod.mil.
    (2) Cyber incident report. The cyber incident report shall be 
treated as information created by or for DoD and shall include, at a 
minimum, the required elements at http://dibnet.dod.mil.
    (3) Medium assurance certificate requirement. In order to report 
cyber incidents in accordance with this clause, the Contractor or 
subcontractor shall have or acquire a DoD-approved medium assurance 
certificate to report cyber incidents. For information on obtaining 
a DoD-approved medium assurance certificate, see http://iase.disa.mil/pki/eca/certificate.html.
    (d) Malicious software. The Contractor or subcontractors that 
discover and isolate malicious software in connection with a 
reported cyber incident shall submit the malicious software in 
accordance with instructions provided by the Contracting Officer.
    (e) Media preservation and protection. When a Contractor 
discovers a cyber incident has occurred, the Contractor shall 
preserve and protect images of all known affected information 
systems identified in paragraph (c)(1)(i) of this clause and all 
relevant monitoring/packet capture data for at least 90 days from 
the submission of the cyber incident report to allow DoD to request 
the media or decline interest.
    (f) Access to additional information or equipment necessary for 
forensic analysis. Upon request by DoD, the Contractor shall provide 
DoD with access to additional information or equipment that is 
necessary to conduct a forensic analysis.
    (g) Cyber incident damage assessment activities. If DoD elects 
to conduct a damage assessment, the Contracting Officer will request 
that the Contractor provide all of the damage assessment information 
gathered in accordance with paragraph (e) of this clause.
    (h) DoD safeguarding and use of contractor attributional/
proprietary information. The Government shall protect against the 
unauthorized use or release of information obtained from the 
contractor (or derived from information obtained from the 
contractor) under this clause that includes contractor 
attributional/proprietary information, including such information 
submitted in accordance with paragraph (c). To the maximum extent 
practicable, the Contractor shall identify and mark attributional/
proprietary information. In making an authorized release of such 
information, the Government will implement appropriate procedures to 
minimize the contractor attributional/proprietary information that 
is included in such authorized release, seeking to include only that 
information that is necessary for the authorized purpose(s) for 
which the information is being released.
    (i) Use and release of contractor attributional/proprietary 
information not created by or for DoD. Information that is obtained 
from the contractor (or derived from information obtained from the 
contractor) under this clause that is not created by or for DoD is 
authorized to be released outside of DoD--
    (1) To entities with missions that may be affected by such 
information;
    (2) To entities that may be called upon to assist in the 
diagnosis, detection, or mitigation of cyber incidents;
    (3) To Government entities that conduct counterintelligence or 
law enforcement investigations;
    (4) For national security purposes, including cyber situational 
awareness and defense purposes (including with Defense Industrial 
Base (DIB) participants in the program at 32CFR 236); or
    (5) To a support services contractor (``recipient'') that is 
directly supporting Government activities under a contract that 
includes the clause at 252.204-7009, Limitations on the Use or 
Disclosure of Third-Party Contractor Reported Cyber Incident 
Information.
    (j) Use and release of contractor attributional/proprietary 
information created by or for DoD. Information that is obtained from 
the contractor (or derived from information obtained from the 
contractor) under this clause that is created by or for DoD 
(including the information submitted

[[Page 51747]]

pursuant to paragraph (c) of this clause) is authorized to be used 
and released outside of DoD for purposes and activities authorized 
by paragraph (i) of this clause, and for any other lawful Government 
purpose or activity, subject to all applicable statutory, 
regulatory, and policy based restrictions on the Government's use 
and release of such information.
    (k) The Contractor shall conduct activities under this clause in 
accordance with applicable laws and regulations on the interception, 
monitoring, access, use, and disclosure of electronic communications 
and data.
    (l) Other safeguarding or reporting requirements. The 
safeguarding and cyber incident reporting required by this clause in 
no way abrogates the Contractor's responsibility for other 
safeguarding or cyber incident reporting pertaining to its 
unclassified information systems as required by other applicable 
clauses of this contract, or as a result of other applicable U.S. 
Government statutory or regulatory requirements.
    (m) Subcontracts. The Contractor shall--
    (1) Include the substance of this clause, including this 
paragraph (m), in all subcontracts, including subcontracts for 
commercial items; and
    (2) Require subcontractors to rapidly report cyber incidents 
directly to DoD at http://dibnet.dod.mil and the prime Contractor. 
This includes providing the incident report number, automatically 
assigned by DoD, to the prime Contractor (or next higher-tier 
subcontractor) as soon as practicable.


(End of clause)

0
15. Add section 252.239-7009 to read as follows:


252.239-7009  Representation of Use of Cloud Computing.

    As prescribed in 239.7603(a), use the following provision:

Representation of Use of Cloud Computing (AUG 2015)

    (a) Definition. Cloud computing, as used in this provision, 
means a model for enabling ubiquitous, convenient, on-demand network 
access to a shared pool of configurable computing resources (e.g., 
networks, servers, storage, applications, and services) that can be 
rapidly provisioned and released with minimal management effort or 
service provider interaction. This includes other commercial terms, 
such as on-demand self-service, broad network access, resource 
pooling, rapid elasticity, and measured service. It also includes 
commercial offerings for software-as-a-service, infrastructure-as-a-
service, and platform-as-a-service.
    (b) The Offeror shall indicate by checking the appropriate blank 
in paragraph (b) of this provision whether the use of cloud 
computing is anticipated under the resultant contract.
    (c) Representation. The Offeror represents that it--
    __Does anticipate that cloud computing services will be used in 
the performance of any contract or subcontract resulting from this 
solicitation.
    __Does not anticipate that cloud computing services will be used 
in the performance of any contract or subcontract resulting from 
this solicitation.


(End of provision)

0
16. Add section 252.239-7010 to read as follows:


252.239-7010  Cloud Computing Services.

    As prescribed in 239.7603(b), use the following clause:

Cloud Computing Services (AUG 2015)

    (a) Definitions. As used in this clause--
    Authorizing official, as described in DoD Instruction 8510.01, 
Risk Management Framework (RMF) for DoD Information Technology (IT), 
means the senior Federal official or executive with the authority to 
formally assume responsibility for operating an information system 
at an acceptable level of risk to organizational operations 
(including mission, functions, image, or reputation), organizational 
assets, individuals, other organizations, and the Nation.
    Cloud computing means a model for enabling ubiquitous, 
convenient, on-demand network access to a shared pool of 
configurable computing resources (e.g., networks, servers, storage, 
applications, and services) that can be rapidly provisioned and 
released with minimal management effort or service provider 
interaction. This includes other commercial terms, such as on-demand 
self-service, broad network access, resource pooling, rapid 
elasticity, and measured service. It also includes commercial 
offerings for software-as-a-service, infrastructure-as-a-service, 
and platform-as-a-service.
    Cyber incident means actions taken through the use of computer 
networks that result in a compromise or an actual or potentially 
adverse effect on an information system and/or the information 
residing therein.
    Government data means any information, document, media, or 
machine readable material regardless of physical form or 
characteristics, that is created or obtained by the Government in 
the course of official Government business.
    Government-related data means any information, document, media, 
or machine readable material regardless of physical form or 
characteristics that is created or obtained by a contractor through 
the storage, processing, or communication of Government data. This 
does not include contractor's business records e.g. financial 
records, legal records etc. or data such as operating procedures, 
software coding or algorithms that are not uniquely applied to the 
Government data.
    Media means physical devices or writing surfaces including, but 
not limited to, magnetic tapes, optical disks, magnetic disks, 
large-scale integration memory chips, and printouts onto which 
covered defense information is recorded, stored, or printed within a 
covered contractor information system.
    Spillage security incident that results in the transfer of 
classified or controlled unclassified information onto an 
information system not accredited (i.e., authorized) for the 
appropriate security level.
    (b) Cloud computing security requirements. The requirements of 
this clause are applicable when using cloud computing to provide 
information technology services in the performance of the contract.
    (1) If the Contractor indicated in its offer that it ``does not 
anticipate the use of cloud computing services in the performance of 
a resultant contract,'' in response to provision 252.239-7009, 
Representation of Use of Cloud Computing, and after the award of 
this contract, the Contractor proposes to use cloud computing 
services in the performance of the contract, the Contractor shall 
obtain approval from the Contracting Officer prior to utilizing 
cloud computing services in performance of the contract.
    (2) The Contractor shall implement and maintain administrative, 
technical, and physical safeguards and controls with the security 
level and services required in accordance with the Cloud Computing 
Security Requirements Guide (SRG) (version in effect at the time the 
solicitation is issued or as authorized by the Contracting Officer) 
found at http://iase.disa.mil/cloud_security/Pages/index.aspx;
    (3) The Contractor shall maintain within the United States or 
outlying areas all Government data that is not physically located on 
DoD premises, unless the Contractor receives written notification 
from the Contracting Officer to use another location, in accordance 
with DFARS 239.7602-2(a).
    (c) Limitations on access to, and use and disclosure of 
Government data and Government-related data.
    (1) The Contractor shall not access, use, or disclose Government 
data unless specifically authorized by the terms of this contract or 
a task order or delivery order issued hereunder.
    (i) If authorized by the terms of this contract or a task order 
or delivery order issued hereunder, any access to, or use or 
disclosure of, Government data shall only be for purposes specified 
in this contract or task order or delivery order.
    (ii) The Contractor shall ensure that its employees are subject 
to all such access, use, and disclosure prohibitions and 
obligations.
    (iii) These access, use, and disclosure prohibitions and 
obligations shall survive the expiration or termination of this 
contract.
    (2) The Contractor shall use Government-related data only to 
manage the operational environment that supports the Government data 
and for no other purpose unless otherwise permitted with the prior 
written approval of the Contracting Officer.
    (d) Cloud computing services cyber incident reporting. The 
Contractor shall report all cyber incidents that are related to the 
cloud computing service provided under this contract. Reports shall 
be submitted to the Department of Defense via http://dibnet.dod.mil/.
    (e) Malicious software. The Contractor or subcontractors that 
discover and isolate malicious software in connection with a 
reported cyber incident shall submit the malicious software in 
accordance with

[[Page 51748]]

instructions provided by the Contracting Officer.
    (f) Media preservation and protection. When a Contractor 
discovers a cyber incident has occurred, the Contractor shall 
preserve and protect images of all known affected information 
systems identified in paragraph (d) of this clause and all relevant 
monitoring/packet capture data for at least 90 days from the 
submission of the cyber incident report to allow DoD to request the 
media or decline interest.
    (g) Access to additional information or equipment necessary for 
forensic analysis. Upon request by DoD, the Contractor shall provide 
DoD with access to additional information or equipment that is 
necessary to conduct a forensic analysis.
    (h) Cyber incident damage assessment activities. If DoD elects 
to conduct a damage assessment, the Contracting Officer will request 
that the Contractor provide all of the damage assessment information 
gathered in accordance with paragraph (f) of this clause.
    (i) Records management and facility access.
    (1) The Contractor shall provide the Contracting Officer all 
Government data and Government-related data in the format specified 
in the contract.
    (2) The Contractor shall dispose of Government data and 
Government-related data in accordance with the terms of the contract 
and provide the confirmation of disposition to the Contracting 
Officer in accordance with contract closeout procedures.
    (3) The Contractor shall provide the Government, or its 
authorized representatives, access to all Government data and 
Government-related data, access to contractor personnel involved in 
performance of the contract, and physical access to any Contractor 
facility with Government data, for the purpose of audits, 
investigations, inspections, or other similar activities, as 
authorized by law or regulation.
    (j) Notification of third party access requests. The Contractor 
shall notify the Contracting Officer promptly of any requests from a 
third party for access to Government data or Government-related 
data, including any warrants, seizures, or subpoenas it receives, 
including those from another Federal, State, or Local agency. The 
Contractor shall cooperate with the Contracting Officer to take all 
measures to protect Government data and Government-related data from 
any unauthorized disclosure.
    (k) Spillage. Upon notification by the Government of a spillage, 
or upon the Contractor's discovery of a spillage, the Contractor 
shall cooperate with the Contracting Officer to address the spillage 
in compliance with agency procedures.
    (l) Subcontracts. The Contractor shall include the substance of 
this clause, including this paragraph (l), in all subcontracts that 
involve or may involve cloud services, including subcontracts for 
commercial items.


(End of clause)

[FR Doc. 2015-20870 Filed 8-25-15; 8:45 am]
BILLING CODE 5001-06-P