[Weekly Compilation of Presidential Documents Volume 29, Number 1 (Monday, January 11, 1993)]
[Pages 17-22]
[Online from the Government Publishing Office, www.gpo.gov]
<R04>
Executive Order 12829--National Industrial Security Program
January 6, 1993
This order establishes a National Industrial Security Program to
safeguard Federal Government classified information that is released to
contractors, licensees, and grantees of the United States Government. To
promote our national interests, the United States Government issues
contracts, licenses, and grants to nongovernment organizations. When
these arrangements require access to classified information, the
national security requires that this information be safeguarded in a
manner equivalent to its protection within the executive branch of
Government. The national security also requires that our industrial
security program promote the economic and technological interests of the
United States. Redundant, overlapping, or unnecessary requirements
impede those interests. Therefore, the National Industrial Security
Program shall serve as a single, integrated, cohesive industrial
security program to protect classified information and to preserve our
Nation's economic and technological interests.
Therefore, by the authority vested in me as President by the
Constitution and the laws of the United States of America, including the
Atomic Energy Act of 1954, as amended (42 U.S.C. 2011-2286), the
National Security Act of 1947, as amended (codified as amended in
scattered sections of the United States Code), and the Federal Advisory
Committee
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Act, as amended (5 U.S.C. App. 2), it is hereby ordered as follows:
Part 1. Establishment and Policy
Section 101. Establishment. (a) There is established a National
Industrial Security Program. The purpose of this program is to safeguard
classified information that may be released or has been released to
current, prospective, or former contractors, licensees, or grantees of
United States agencies. For the purposes of this order, the terms
``contractor, licensee, or grantee'' means current, prospective, or
former contractors, licensees, or grantees of United States agencies.
The National Industrial Security Program shall be applicable to all
executive branch departments and agencies.
(b) The National Industrial Security Program shall provide for the
protection of information classified pursuant to Executive Order No.
12356 of April 2, 1982, or its successor, and the Atomic Energy Act of
1954, as amended.
(c) For the purposes of this order, the term ``contractor'' does not
include individuals engaged under personal services contracts.
Sec. 102. Policy Direction. (a) The National Security Council shall
provide overall policy direction for the National Industrial Security
Program.
(b) The Director of the Information Security Oversight Office,
established under Executive Order No. 12356 of April 2, 1982, shall be
responsible for implementing and monitoring the National Industrial
Security Program and shall:
(1) develop, in consultation with the agencies, and promulgate
subject to the approval of the National Security Council, directives for
the implementation of this order, which shall be binding on the
agencies;
(2) oversee agency, contractor, licensee, and grantee actions to
ensure compliance with this order and implementing directives;
(3) review all agency implementing regulations, internal rules, or
guidelines. The Director shall require any regulation, rule, or
guideline to be changed if it is not consistent with this order or
implementing directives. Any such decision by the Director may be
appealed to the National Security Council. The agency regulation, rule,
or guideline shall remain in effect pending a prompt decision on the
appeal;
(4) have the authority, pursuant to terms of applicable contracts,
licenses, grants, or regulations, to conduct on-site reviews of the
implementation of the National Industrial Security Program by each
agency, contractor, licensee, and grantee that has access to or stores
classified information and to require of each agency, contractor,
licensee, and grantee those reports, information, and other cooperation
that may be necessary to fulfill the Director's responsibilities. If
these reports, inspections, or access to specific classified
information, or other forms of cooperation, would pose an exceptional
national security risk, the affected agency head or the senior official
designated under section 203(a) of this order may request the National
Security Council to deny access to the Director. The Director shall not
have access pending a prompt decision by the National Security Council;
(5) report any violations of this order or its implementing
directives to the head of the agency or to the senior official
designated under section 203(a) of this order so that corrective action,
if appropriate, may be taken. Any such report pertaining to the
implementation of the National Industrial Security Program by a
contractor, licensee, or grantee shall be directed to the agency that is
exercising operational oversight over the contractor, licensee, or
grantee under section 202 of this order;
(6) consider and take action on complaints and suggestions from
persons within or outside the Government with respect to the
administration of the National Industrial Security Program;
(7) consider, in consultation with the advisory committee
established by this order, affected agencies, contractors, licensees,
and grantees, and recommend to the President through the National
Security Council changes to this order; and
(8) report at least annually to the President through the National
Security Council on the implementation of the National Industrial
Security Program.
(c) Nothing in this order shall be construed to supersede the
authority of the Secretary of Energy or the Nuclear Regulatory Com-
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mission under the Atomic Energy Act of 1954, as amended, or the
authority of the Director of Central Intelligence under the National
Security Act of 1947, as amended, or Executive Order No. 12333 of
December 8, 1981.
Sec. 103. National Industrial Security Program Policy Advisory
Committee. (a) Establishment. There is established the National
Industrial Security Program Policy Advisory Committee (``Committee'').
The Director of the Information Security Oversight Office shall serve as
Chairman of the Committee and appoint the members of the Committee. The
members of the Committee shall be the representatives of those
departments and agencies most affected by the National Industrial
Security Program and nongovernment representatives of contractors,
licensees, or grantees involved with classified contracts, licenses, or
grants, as determined by the Chairman.
(b) Functions. (1) The Committee members shall advise the Chairman
of the Committee on all matters concerning the policies of the National
Industrial Security Program, including recommended changes to those
policies as reflected in this order, its implementing directives, or the
operating manual established under this order, and serve as a forum to
discuss policy issues in dispute.
(2) The Committee shall meet at the request of the Chairman, but at
least twice during the calendar year.
(c) Administration. (1) Members of the Committee shall serve without
compensation for their work on the Committee. However, nongovernment
members may be allowed travel expenses, including per diem in lieu of
subsistence, as authorized by law for persons serving intermittently in
the Government service (5 U.S.C. 5701-5707).
(2) To the extent permitted by law and subject to the availability
of funds, the Administrator of General Services shall provide the
Committee with administrative services, facilities, staff, and other
support services necessary for the performance of its functions.
(d) General. Notwithstanding any other Executive order, the
functions of the President under the Federal Advisory Committee Act, as
amended, except that of reporting to the Congress, which are applicable
to the Committee, shall be performed by the Administrator of General
Services in accordance with the guidelines and procedures established by
the General Services Administration.
Part 2. Operations
Sec. 201. National Industrial Security Program Operating Manual. (a)
The Secretary of Defense, in consultation with all affected agencies and
with the concurrence of the Secretary of Energy, the Nuclear Regulatory
Commission, and the Director of Central Intelligence, shall issue and
maintain a National Industrial Security Program Operating Manual
(``Manual''). The Secretary of Energy and the Nuclear Regulatory
Commission shall prescribe and issue that portion of the Manual that
pertains to information classified under the Atomic Energy Act of 1954,
as amended. The Director of Central Intelligence shall prescribe and
issue that portion of the Manual that pertains to intelligence sources
and methods, including Sensitive Compartmented Information.
(b) The Manual shall prescribe specific requirements, restrictions,
and other safeguards that are necessary to preclude unauthorized
disclosure and control authorized disclosure of classified information
to contractors, licensees, or grantees. The Manual shall apply to the
release of classified information during all phases of the contracting
process including bidding, negotiation, award, performance, and
termination of contracts, the licensing process, or the grant process,
with or under the control of departments or agencies.
(c) The Manual shall also prescribe 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.
(d) In establishing particular requirements, restrictions, and other
safeguards within the Manual, the Secretary of Defense, the Secretary of
Energy, the Nuclear Regulatory Commission, and the Director of Central
Intelligence shall take into account
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these factors: (i) the damage to the national security that reasonably
could be expected to result from an unauthorized disclosure; (ii) the
existing or anticipated threat to the disclosure of information; and
(iii) the short- and long-term costs of the requirements, restrictions,
and other safeguards.
(e) To the extent that is practicable and reasonable, the
requirements, restrictions, and safeguards that the Manual establishes
for the protection of classified information by contractors, licensees,
and grantees shall be consistent with the requirements, restrictions,
and safeguards that directives implementing Executive Order No. 12356 of
April 2, 1982, or the Atomic Energy Act of 1954, as amended, establish
for the protection of classified information by agencies. Upon request
by the Chairman of the Committee, the Secretary of Defense shall provide
an explanation and justification for any requirement, restriction, or
safeguard that results in a standard for the protection of classified
information by contractors, licensees, and grantees that differs from
the standard that applies to agencies.
(f) The Manual shall be issued no later than 1 year from the
issuance of this order.
Sec. 202. Operational Oversight. (a) The Secretary of Defense shall
serve as Executive Agent for inspecting and monitoring the contractors,
licensees, and grantees who require or will require access to, or who
store or will store classified information; and for determining the
eligibility for access to classified information of contractors,
licensees, and grantees and their respective employees. The heads of
agencies shall enter into agreements with the Secretary of Defense that
establish the terms of the Secretary's responsibilities on behalf of
these agency heads.
(b) The Director of Central Intelligence retains authority over
access to intelligence sources and methods, including Sensitive
Compartmented Information. The Director of Central Intelligence may
inspect and monitor contractor, licensee, and grantee programs and
facilities that involve access to such information or may enter into
written agreements with the Secretary of Defense, as Executive Agent, to
inspect and monitor these programs or facilities, in whole or in part,
on the Director's behalf.
(c) The Secretary of Energy and the Nuclear Regulatory Commission
retain authority over access to information under their respective
programs classified under the Atomic Energy Act of 1954, as amended. The
Secretary or the Commission may inspect and monitor contractor,
licensee, and grantee programs and facilities that involve access to
such information or may enter into written agreements with the Secretary
of Defense, as Executive Agent, to inspect and monitor these programs or
facilities, in whole or in part, on behalf of the Secretary or the
Commission, respectively.
(d) The Executive Agent shall have the authority to issue, after
consultation with affected agencies, standard forms or other
standardization that will promote the implementation of the National
Industrial Security Program.
Sec. 203. Implementation. (a) The head of each agency that enters
into classified contracts, licenses, or grants shall designate a senior
agency official to direct and administer the agency's implementation and
compliance with the National Industrial Security Program.
(b) Agency implementing regulations, internal rules, or guidelines
shall be consistent with this order, its implementing directives, and
the Manual. Agencies shall issue these regulations, rules, or guidelines
no later than 180 days from the issuance of the Manual. They may
incorporate all or portions of the Manual by reference.
(c) Each agency head or the senior official designated under
paragraph (a) above shall take appropriate and prompt corrective action
whenever a violation of this order, its implementing directives, or the
Manual occurs.
(d) The senior agency official designated under paragraph (a) above
shall account each year for the costs within the agency associated with
the implementation of the National Industrial Security Program. These
costs shall be reported to the Director of the Information Security
Oversight Office, who shall include them in the reports to the President
prescribed by this order.
(e) The Secretary of Defense, with the concurrence of the
Administrator of General Services, the Administrator of the National
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Aeronautics and Space Administration, and such other agency heads or
officials who may be responsible, shall amend the Federal Acquisition
Regulation to be consistent with the implementation of the National
Industrial Security Program.
(f) All contracts, licenses, or grants that involve access to
classified information and that are advertised or proposed following the
issuance of agency regulations, rules, or guide-lines described in
paragraph (b) above shall comply with the National Industrial Security
Program. To the extent that is feasible, economical, and permitted by
law, agencies shall amend, modify, or convert preexisting contracts,
licenses, or grants, or previously advertised or proposed contracts,
licenses, or grants, that involve access to classified information for
operation under the National Industrial Security Program. Any direct
inspection or monitoring of contractors, licensees, or grantees
specified by this order shall be carried out pursuant to the terms of a
contract, license, grant, or regulation.
(g) Executive Order No. 10865 of February 20, 1960, as amended by
Executive Order No. 10909 of January 17, 1961, and Executive Order No.
11382 of November 27, 1967, is hereby amended as follows:
(1) Section 1(a) and (b) are revoked as of the effective date of
this order.
(2) Section 1(c) is renumbered as Section 1 and is amended to read
as follows:
``Section 1. When used in this order, the term `head of a
department' means the Secretary of State, the Secretary of Defense, the
Secretary of Transportation, the Secretary of Energy, the Nuclear
Regulatory Commission, the Administrator of the National Aeronautics and
Space Administration, and, in section 4, the Attorney General. The term
`head of a department' also means the head of any department or agency,
including but not limited to those referenced above with whom the
Department of Defense makes an agreement to extend regulations
prescribed by the Secretary of Defense concerning authorizations for
access to classified information pursuant to Executive Order No.
12829.''
(3) Section 2 is amended by inserting the words ``pursuant to
Executive Order No. 12829'' after the word ``information.''
(4) Section 3 is amended by inserting the words ``pursuant to
Executive Order No. 12829'' between the words ``revoked'' and ``by'' in
the second clause of that section.
(5) Section 6 is amended by striking out the words ``The Secretary
of State, the Secretary of Defense, the Administrator of the National
Aeronautics and Space Administration, the Secretary of Transportation,
or his representative, or the head of any other department or agency of
the United States with which the Department of Defense makes an
agreement under section (1)(b),'' at the beginning of the first
sentence, and inserting in their place ``The head of a department of the
United States . . . .''
(6) Section 8 is amended by striking out paragraphs (1) through (7)
and inserting in their place ``. . . the deputy of that department, or
the principal assistant to the head of that department, as the case may
be.''
(h) All delegations, rules, regulations, orders, directives,
agreements, contracts, licenses, and grants issued under preexisting
authorities, including section 1(a) and (b) of Executive Order No. 10865
of February 20, 1960, as amended, by Executive Order No. 10909 of
January 17, 1961, and Executive Order No. 11382 of November 27, 1967,
shall remain in full force and effect until amended, modified, or
terminated pursuant to authority of this order.
(i) This order shall be effective immediately.
George Bush
The White House,
January 6, 1993.
[Filed with the Office of the Federal Register, 10:52 a.m., January 7,
1993]
Note: This Executive order was released by the Office of the Press
Secretary on January 7, and it was published in the Federal Register on
January 8.
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