Thursday, January 27, 2011

Cleared Contractor Organizations

Business Organization Requirements

A defense contractor should be legitimate business entity, have good reputation and practice ethical business practices. The company should prove that they are structured and a legal entity under the laws of the United States, the District of Columbia or Puerto Rico and have a physical location in the United States or territories. Such proof includes Articles of Incorporation, Stock Records, Minutes of Board Meetings, and Corporate by-laws. Legal entities include one or more of the following business structures:

Sole Proprietorship

A Sole Proprietorship is a business owned by one individual. The owner is in control of all equipment, supplies and assets of the business. As a result, they receive all the money earned. They control all decisions and are ultimately the one entity who can commit the business to decisions. The upside is that the owner receives all the benefits and earnings and has full control.

The down side to a sole proprietorship is that the owner is ultimately responsible for funding the business. They are also liable for any obligations that may extend beyond the business into personal assets. This could be tough if any lawsuits are brought up against the company. It’s possible that the owner could pay dearly for lawsuits stemming from business practices. Additionally, if the owner dies, so does the business. The business depends 100 percent on the owner’s involvement and the owner depends 100 percent on the business’ to succeed.


Partnerships exist when two or more people, entities or businesses form a business entity. The partnership is a legal body put together for limited application. The partnership formed is independent of the individuals engaged in the partnership. The organizations that form a partnership are a new entity. Depending on the type of partnership, the new entity receives the rewards, benefits and liability of business decisions. Individuals are not liable.

Partners make the day to day decisions of the partnership. This works well when partners are of the same mind and have the same goals. It can be a frustrating experience when these goals are not clear, personalities conflict and creativity is stifled. Partners should outline the duties ahead of time to determine who is responsible for creativity, marketing, sales and other business decisions.


A corporation is a business owned by one or more legal entities. The entities can be other corporations, businesses, individuals, or partnerships. The corporate entities are separate from the individuals who make up that corporation. Corporations offer the best legal protection as the corporation and not the members are accountable. All success and failure affects the corporation and not the individual. The owners and shareholders of corporations are those who own stocks. Each shareholder owns a percentage of the company depending on amount of stocks owned.

Decision making begins with the election of a board of directors. This board of directors determines the direction and company strategy. They hire and appoint company officers to take care of the day to day work. Presidents, Chief Operation Officers, Chief Executive Officers, Vice-Presidents and etc. are hired by the board of directors.

Limited Liability Company (LLC)

An LLC structure offers similar benefits and protection as a corporation and the individual in an LLC is protected much better than with a sole proprietorship. The company is controlled either by one or more owners. These owners can be individuals, corporations or other LLCs. The owners can control the company or the owners can appoint managers to control company operations.

An LLC can have a single owner and have all the business making decisions that come from a sole proprietorship as well as protection enjoyed by corporations. However, the LLC has a limited life cycle. If you form an LLC with others, any of the owners or designated managers can obligate the company. However, owners are not personally liable for business debts.

Key Management Personnel (KMP)-These are management or senior leaders who influence decisions regarding classified contracts. KMPs can be members of the board of directors, vice-presidents, directors or other upper level managers. Also, neither the company nor key managers can be barred from participating in US Government contracts. A review of Federal Acquisition Regulations (FAR) demonstrates the ethics and legal requirements of companies who wish to participate in these contracts.

Wednesday, January 26, 2011

How do defense contractors justify security clearances

How are security clearances granted? Why does the Government grant security clearances? How does the Government assign security classification? Who is eligible for a security clearance? First of all, classified information must be protected. Part of the protection is to ensure only properly investigated and vetted cleared employees with need to know get access to classified information.

Defense contractor employees are required to have a personnel security clearance (PCL) and need to know before being granted access to classified information. The PCL is also related to a facility security clearance (FCL) held by the cleared contractor they work for. Respectively, the defense contractors are required to have a FCL prior to performing on classified contracts. What does this mean? It means the cleared contractor and cleared employee has been thoroughly investigated and properly vetted before even being considered eligible to receive classified information.

Defense contractors and their employees cannot apply for a security clearance for the sake of having a security clearance. They must be sponsored by a Prime Contractor or Government Contracting Activity (GCA). The FCLs are granted to defense contractors and PCLs are awarded to their employees only after an investigation and adjudication. Therefore, think of a security clearance as the administrative determination that someone is eligible from a national security basis for access to classified information.

Tuesday, January 25, 2011

Insider’s Guide to Security Clearances

Insider’s Guide to Security Clearances

Who this Book is ForPerhaps you are one of the many who have questions about getting a security clearance. Maybe you are interested either as an employee or business owner in getting a security clearance, but don’t know how to get started. This book is written with you in mind and is addressed specifically for defense contractors operating under the Department of Defense guidance. Other Government agencies may have different procedures. However, this book can be used as a general reference regardless of which agency the contractor is operating under. This book reflects requirements as found in the National Industrial Security Program Operating Manual (NISPOM)

There are numerous training opportunities within the industrial security community, government services, and professional organizations. However, other than government regulations, there are few published books addressing the subject. This book is intended to provide answers that help those who would like to know more about what it takes to get a clearance or prepare for work on classified contracts. It will assist the college student studying industrial security or homeland security, upstart companies looking for work, and new industrial security employees with understanding the fundamental demands of a career in Industrial Security.

Employees and defense contractors who desire to have a security clearance are often uninformed on how to get them. Some think that security clearances can be granted to allow them to be more employable. Businesses may want to have a security clearance for their businesses so they can get more work. However, security clearances are granted only on a contract and legitimate government work that requires access to classified information.

This book is divided into chapters with you in mind. The way our book differs from other security clearance books resides in following chapters describing what to do once a clearance is granted. We can’t promise to help you get a clearance. Getting a security clearance depends on whether or not you or your business is trustworthy and you have products or services needed by the government or another contractor. This book only provides an overall view that is covered in more detail in the National Industrial Security Program Operating Manual (NISPOM) and the book, Security Clearances and Performing on Classified Contracts both available from Red Bike Publishing.

The chapters walk the reader along the requirement of registering as a defense contractor, the facility security clearance and personnel security clearance process, the required appointed positions, the National Industrial Security Program and how to protect classified information. For example, once a facility clearance is granted, a Facility Security Officer (FSO) must be appointed to manage the security of classified information and contracts. This book addresses the general FSO duties that may be assumed by the business owner or an appointed cleared employee. It also lets the non business owner reader know what to expect once they get their security clearance.

This book is intended to provide information about the security clearance process. The author does not guarantee that the reader will get a security clearance. All coordination for the security clearance process should be conducted through the government, Defense Security Services and a Facility Security Officer.

All this for only $7.95

61 Pages

PDF Format

Saturday, January 22, 2011

Security Clearances and the FSO

The Facility Security Officer
You might be asking, why all the emphasis an FSO? Isn’t this book about security clearances? Yes it is. It’s all about security clearances and FSOs are a large part of the process. For those of you who own your own business and are trying to get or are in the process of obtaining an FCL and PCL, or are currently performing on classified contracts, your appointment of someone to perform as or your assumption of FSO duties should not be taken lightly. If you are an employee who needs a clearance, the FSO is on your team to initiate the clearance, answer questions about your clearance and is an integral part in the continuous evaluation process. The FSO is going to make or break your security clearance capability. Security clearances and FSOs go hand in hand; one does not go without the other.
Executive Order 12829 National Industrial Security Program
The US Government awards contracts, grants and licenses to defense contractors in the course of providing a product or service. The contracts, grants and licenses may be classified in nature. The NISP is designed to protect classified government information that is released to cleared contractors. The result is a partnership between the government and the cleared contractor and an agreement to protect the classified information at the level the government has determined it to be.
The NISP’s purpose is to safeguard classified information that has been or may be released to “…current, prospective, or former contractors, licensees, or grantees of United States agencies”. It provides guidance for safeguarding classified information, required security education topics and training programs.
The National Industrial Security Program Operating Manual and the Cleared Contractor
Every cleared contractor should have the National Industrial Security Program Operating Manual (NISPOM) readily available either in print or on their computer. Program managers, engineers, security all cleared employees should also possess the NIPOM as it is the guide providing rules, guidelines and procedures for preventing unauthorized disclosure of classified material. The NISPOM applies to authorized users of classified information and equips those working on classified contracts with critical instruction on how to implement the NISP within their organizations. It is up to the cleared contractor and DSS to work together in providing accurate interpretation of the NISPOM to the specific classified contract requirements. It is this interpretation that DSS will use while conducting annual security reviews.
The Secretary of Defense and the other identified agencies apply the concept of risk management while implementing the NISPOM. There are three factors necessary in determining risk. The first is the damage to national security that could be reasonably expected to result from unauthorized disclosure of classified material. The second factor is the existing or anticipated threat to disclosure of information. The third factor is the short and long term costs of the requirements, restrictions, and other safeguards. The second and third factors aren’t spelled out in the NISPOM, but are recognized as legitimate concerns that the FSO and DSS should be prepared to address.

Thursday, January 20, 2011

NISPOM books and ebooks

If you are serious about advancing in your field, get this book. Learn the secrets to becoming influential, earning credibility and studying for the ISP Certification. Secret number one, you are a technical expert and know the business of protecting classified information. Let us help you prepare for the test. Our book helps you prepare for both your career and the ISP Certification Exam. Keep reading for sample questions.

Using our books to augment your ISP exam preparation will help you be better prepared. This book is the only one available for the ISP Certification and offers much more than what is found in other study manuals. Our author teaches insightful study tips designed to show you how to: form study groups, network, seek out opportunities at work, learn your way around the NISPOM and has four exam length practice tests. It’s true, those who have bought our books and used our techniques to augment their preparation have performed very well. See our testimonials page for their stories.


What can be more important than protecting our Nation’s secrets? This study system offers easy to understand career advice and provides a study system designed to help industrial security professionals and Government security specialists understand the NISPOM and Presidential Executive Orders implementing the National Industrial Security Program. Industrial security professionals serving in the government, private or DoD Contractor industry can benefit from the study. Situations and questions throughout the book are designed to help improve your understanding of the NISPOM. In fact, many Facility Security Officers and industrial security professionals face similar situations as they help to safeguard our nation’s secrets.

This is the only product of its kind providing four practice tests, practical advice for security professionals and improved fundamental NISPOM knowledge. ISP Certification-The Industrial Security Professional Exam Manual will both help prepare you for the test and provide career enhancing training to best meet the needs of our government security specialists and industrial security professionals.

Why do you need this book?
The following most recent security job postings tell the story: “Must have CPP or ISP certification” and “Certification as a CPP or ISP preferred.”
Right on target! Jeffrey Bennett’s exam manual is the perfect supplement to the NISPOM for anyone preparing to take the Industrial Security Professional certification exam. The approach is clear and easy to use. It’s definitely worth the price and more.”

Are you prepared for the next step in your career?
Our study method can help with two main problem areas:
Time Limit: One of the ongoing lessons learned involved many not completing the test before it timed out. Fortunately, our practice tests provide a great opportunity to study and become familiar with the NISPOM.

Knowledge Base: A great example concerns one of the most challenging portions for many; Chapter 8. No one can know the entire NISPOM cover to cover. However, rehearsal with the NISPOM will increase your chances of passing the exam, no matter what your strengths and weaknesses.
This is an incredible resource for ISP Certification and any other security training.
See sample pages including practice tests for actual formatted questions.
So, are you ready to jump start your ISP Certification preparation?
Just to reemphasize, you know the business of implementing and overseeing a security program for protecting classified material. All we want to do is give you a concentrated study method to help you prepare for the exam. You concentrate on your career, while we design your study plan.

Why should you earn your NCMS ISP certification?

•Certification identified in Executive Order 13434, National Security Professional Development

•Certifications can help increase earnings 60% (ASIS Study)

•The industry values certification

•ISP Study Book—Great value

•More than 400 questions with answers (Four Tests)

•Practical advice for security professionalspa

Perhaps you feel that the certification is not for you.

Well, did you know the Department of Defense is recognizing certification and also requiring its employees to take on similar certification? Defense contractors are requiring certification for new hires in Human Resources, program management, accounting, and other business units for years. Now, they are looking for leaders in industrial security have board certification.

Perhaps you feel $60.00 is too much for a study guide.

Compared to other certifications and business standards, our price is just about right. Similar ISP certification study guides and programs cost the same, but none offer the volume of questions. This is an investment that can help you get certified and possibly command a larger salary. You may be able to earn this investment back many times over.

“Excellent book for security professionals looking to enhance their Industrial Security Skills and Knowledge. The ISPCertification Exam Manual is also a must for ISP exam applicants.”

However, we have new alternatives.

1. Get our full ISP Certification-The Industrial Security Professional Exam Manual Full eBook for $24.95. It is simply the eBook version of our four test 440 question print book. This book is design to simulate the real exam. Just download the book and the related electronic NISPOM (We have provided a link in the book) and practice taking the exam.

ISP Certification-The Industrial Security Professional Exam Manual Full eBook. $24.95

2. For a limited time only, we have made available the ISP Certification-The Industrial Security Professional Exam Manual Mini eBook. For $9.95 you can test drive our 110 question version for a fraction of the price (our book’s first 110 questions). Then if you need more questions, you can consider one of our other book options.
ISP Certification-The Industrial Security Professional Exam Manual Mini eBook. $9.95

3. We are also pleased to also offer ISP Certification-The Industrial Security Professional Exam Manual flash cards. Now you can experience 110 questions (our book’s first 110 questions). This is a great study reference to augment our book or other study methods. With questions on the front and answers on the back, you can practice any time. Just download the flashcards and print them yourself on Avery 8315 or similar templates. Each card is ¼ of a 8.5 × 11 inch page. For $9.95, this is a great deal.

ISP Certification-The Industrial Security Professional Exam Manual flash cards. $9.95

Also, all of our materials are 100% guaranteed to provide great study aids. We can’t promise you’ll pass the test, but we can promise you will study the right material.

Friday, January 14, 2011

An Insider's View of How to Get a Facility or Personnel Security Clearance

You’ve spent a lot of time, effort and training to be in the position you are in today. You probably spent personal time taking courses, college and attending professional seminars. You are learning and growing, and working hard to earn business as a defense contractor. Perhaps you want to take the additional step to be a cleared defense contractor.

Defense contractors who desire to win classified contracts do not always know where to go to find information on what might be expected of them. Some might find that contracts beginning as unclassified may become classified at a later time, leaving the company with a steep learning curve. Leaders not experienced in working with National Industrial Security Program Operating Manual (NISPOM) or classified contracts may not know where to look for information or gain access to training or possible expenses until after the Government grants their facility and personnel security clearances.

Red Bike Publishing can help. We will soon publish the eBook "The Insider's Guide to Getting a Security Clearance", followed by the mush awaited "How to Get a Security Clearance and Manage Classified Information and Contracts". We have a newsletter for you that focuses on how to get a security clearance whether you are a business owner or an employee.

The author is a 25 year veteran security clearance holder. His experience in the Army and as a cleared contractor FSO has left him responsible for maintaining the clearances of thousands of employees as well implemented programs to protect our nation's secrets.

The newsletters helps:

Understand the security clearance process
How to get a security
How to keep a security clearance
How to establish a cleared contractor organization
Learn more about compliance issues
Protect classified information
To find out ordering information for the upcoming books and insider information of secuirty clearance issues, visit to get our newsletter.

Tuesday, January 4, 2011

Red Bike Publishing

Check out Red Bike Publishing's lates video of books. If you have a book idea, we'd love to hear from you.

Sunday, January 2, 2011

How to Destroy Classified Information

Unless retention is permitted by the Government Contracting Activity (GCA), classified information must be destroyed or returned as soon as it has served its purpose. According to NISPOM section 5-701, classified information can only be retained for two years unless the GCA approves an extension.

Cleared contractors should develop a system to evaluate the classified information in their possession for reduction. Classified information no longer needed should be returned to the GCA or destroyed using approved methods. The FSO should create a system to help prioritize which items to evaluate. The Information Management System (IMS) or accountability system can be used in the process to manage classified holdings and help determine what is still useful and what can be removed. The objective is to maintain only the classified material necessary to execute the classified contract. Additionally, the FSO should be able to determine that the documents were actually destroyed or returned and not lost.

The IMS can also be used to help determine classified information by status. For example, the FSO can sort classified information by contract and see how many related documents and copies exist. Items can be prioritized based on expired contracts, duplicate copies or other criteria.

Approved Destruction Methods

Two people are required to destroy and document the destruction of TOP SECRET information. SECRET and CONFIDENTIAL only require one person. Records and receipt of destruction should be kept on hand for two years when TOP SECRET is destroyed. Though not specifically required, records should also be maintained for SECRET and CONFIDENTIAL. This documentation helps determine the disposition of classified information during inspections and inventories.

Classified information can be destroyed by approved means based on its composition. For example, paper products can be shredded, burned, pulped or pulverized. The residue should be inspected to ensure that classified information is no longer legible. Also, only use NSA approved equipment when shredding classified material.

Commercial enterprises and vendors also provide destruction services. Burn facilities operate at temperatures hot enough to burn paper in bulk, computers and hard drives and other medial. However, approval through DSS is required. Also, classified information should be destroyed the same day as it is removed from the cleared facility. When removed from the cleared facility, classified information should be prepared for removal by double wrap, receipting action and documentation. In other words, the same methods as dissemination of any classified material. Documentation of destruction should include destruction method, who destroyed it, date and time of destruction.