Important Compliance Requirements for Government Contractors

A women architect use laptop and drawing for Compliance Requirements for Government ContractorsGovernment contractors require a superior level of cybersecurity in order to provide effective services for the federal government. Businesses in this competitive sector have demanding IT needs because of their specialized tools and applications, government compliance requirements, and the need to protect and backup a wide variety of sensitive company and client data.

In this article, we will outline the most important compliance standards for government contractors and explain how an IT Managed Service Provider (MSP) can help your firm more effectively fulfill these requirements.

Federal Government Compliance Requirements

Government contractors provide a wide range of products and services for the federal government, which has a complex set of compliance requirements to protect sensitive information. As a result, government contractors need to ensure they fulfill all applicable compliance requirements when they are providing their services.

IT MSPs can help your government contractor stay up to date on meeting important compliance standards. The most important data security standards for government contractors are described below.

The National Institute of Standards and Technology (NIST) and Defense Acquisition Federal Regulation Supplement (DFARS)

NIST issues cybersecurity controls for companies to follow when working on government contracts. The NIST security mandate that is most relevant to small businesses is NIST Special Publication 800-171. This mandate was introduced in 2017, with important revisions in 2020, and details the security compliance requirements for any company that processes, stores, or transmits potentially sensitive information for the Department of Defense (DoD), General Services Administration (GSA), and other federal and state agencies.

Teamwork process for Requirements for Government ContractorsIt is important to note, these IT security compliance requirements apply to any companies working in the federal supply chain including prime contractors, subcontractors supporting prime contractors, and subcontractors working for other subcontractors.

In 2015 the DoD published a FAR (Federal Acquisition Regulations) supplement referred to as DFARS. This regulation supplement was issued to emphasize the importance of maintaining cybersecurity standards according to requirements laid out by NIST SP 800-171. All private contractors working with the DoD must be DFARS-compliant and demonstrate proof of this for all contracts moving forward.

Subcontractors are required to pass satisfactory IT security assessments and provide proof of this to the prime contractor on the government contract. The prime contractors are ultimately responsible for proving to their government customer that all contractors and subcontractors involved in their project are following NIST.

Cybersecurity Maturity Model Certification (CMMC)

Through its comprehensive design using NIST and other security frameworks, the CMMC represents a unified cybersecurity standard that all current and potential companies working with the DoD must meet. The CMMC is specifically targeted to safeguard the controlled unclassified information (CUI) and federal contract information (FCI) located on the unclassified networks of any companies or subcontractors working with the DoD and other agencies.

One important mandate of CMMC is that all contractors and subcontractors on DoD projects will need to pass a thorough validation of CMMC requirements conducted by an official third-party assessment organization.

The CMMC has organized cybersecurity practices and processes into five cumulative maturity levels that range from a minimum basic cyber hygiene at Level 1 to advanced security operations at Level 5. DoD contracts with more vulnerabilities and classified information will require that their contractors possess a higher level of CMMC certification on this scale.

Notably, other federal agencies are increasingly requiring CMMC compliance on their contracts. This recent development makes following CMMC even more important.

Federal Risk and Authorization Management Program (FedRAMP)

FedRAMP is a federal government-wide program that provides guidance on the conducting of security authorization and assessment for cloud service providers (CSPs). This program offers a standardized approach for the security assessment, authorization, and continuous monitoring of cloud services and products. FedRAMP provides a common IT security framework across organizations. Goverment contractors working as CSPs must obtain a FedRAMP authorization, which they can reuse on different federal government projects.

Federal Information Security Management Act (FISMA)

The Federal Information Security Management Act (FISMA) is a federal law that requires federal agencies, state agencies administering federal programs, and government contractors to develop, document, and implement an information security and protection program that effectively manages risk.

FISMA provides specific requirements that federal agencies and their contractors must meet to ensure the security of sensitive information. These requirements encompass critical aspects of data security, including access control, risk management, and incident response.

The Negative Impact of Non-Compliance

Non-compliance with these important standards and regulations can result in severe penalties such as fines, reduced federal funding, censure by Congress, loss of federal contracts, and public relations damage.

Non-compliance can also result in weak network infrastructure, which could lead to devastating cyberattacks or data breaches, and result in serious regulatory fines or legal penalties.

A reliable IT Support partner will be knowledgeable about the IT and security compliance requirements of your company and your clients and will update your systems and networks as required. These efforts will help your organization avoid the negative repercussions of non-compliance.

An Experienced IT MSP Will Help Your Organization Stay in Compliance

meeting for people to discuss Requirements for Government ContractorsWe recommend that you work closely with an expert in IT security and compliance requirements, such as Network Depot, in order to successfully navigate the federal government compliance process and prepare your company to meet all IT security challenges.

Maintaining an elite level of cybersecurity is a critical component of meeting compliance requirements. IT MSPs are data security experts that will implement and monitor the most powerful and effective cybersecurity tools to keep your sensitive information secure. An IT Support partner will also provide cybersecurity training to your employees and periodically assess their internet and email behavior.

An experienced IT MSP will evaluate your current IT security environment, recommend remediation steps, and effectively implement measures to help prepare you for comprehensive compliance assessments. They will also keep your IT network updated to meet revised or new compliance requirements. A dependable IT partner will be with you every step of the way in the complex compliance process.

With the assistance of your trusted IT Support partner, you will get valuable support staying in compliance and obtaining necessary authorizations and certificates. By fulfilling compliance requirements, your organization will be able to work effectively and securely on contracts from the DoD and other federal agencies.

With the help of an IT MSP your organization will be confident that your IT is functioning at an optimal level and you are meeting compliance requirements. As a result, your government contracting firm will be able to better focus valuable time and resources on achieving your unique goals.


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