FORTHCOMING CHANGES TO THE INDUSTRIAL SECURITY MANUAL (ISM)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89B01356R000200350005-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 14
• Document Creation Date: December 23, 2016
• Document Release Date: August 17, 2012
• Sequence Number: 5
• Publication Date: October 15, 1987
• Content Type: MEMO

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DEFENSE INVESTIGATIVE SERVICE
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SUBJECT:
lorthconing sages to the industrial Security Manual (III)
TO: , Director of industrial Security
Director. Office of Industrial Security. International-Europe
- Chief. Office of tadustrial Security. International-Par last
-
Director. Defense industrial Security Clearance Office
STAT
1. This Is to provide an update on ISK changes from the Stilwell Commission
and advance Information concerning other fortbcomiegiAM changes which were
agreed upon at a February 26, 1987 meeting between DIS and ODUSD(P).
2. Outs tending ISM changes as a reeult of Stilwell recommendations:
a. 'Classification challenges (021). Approved for publication without
coordination (Attachment 1).
b. Control of reproduction equipnent (023). Requires further staffing due
to complexity.
I/
c. Report all foreign travel (042). To be Coordinated before publication.
d. Inspect briefcases (044). To be coordinated (Attachment 2).
e. laturalized citizens from designated countries (066). Revise ISIVIDi
to provide:
41.?
(1) Eligibility requireuents of five years ass U.S. citizen, or 10
years residency, will be put into next ISK change.
(2) Such applicants :mat b. submitted on DO Fora 49 so that such
clearances at all levels will be based upon III.
(3) Such individuals are not eligible for company confidential
clearance. (Attachment 3 is an advance copy but It needs sore staffing.)
f. Prohibit retention beyond 3 years (030). Approved for publication,
without coordination, In mart ISM Change.
Annual clean-out day MO. Approved for coordination.
3. Other ISM clones:
/47/7,, rite, we,
It was agreed to eliminate the
eurre proceourns for privacy nssuans. TWa 1111 allow tbe contractor to
ASCCOSS tbe privacy section of the ?SQ. This is expected to ribiga_onr 'glut
rote. An applicant will be able to requetwakfmterviev via a ID44 agent
instead of answering a privacy question sada certain CoDUMOS. .
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(1) 1. bops to implement the above by publication of the new PSQ (e.g.
the sev DD lora 398 to replace the OD Perm 49 and the mew DD Porn 398-2 to
replace the DO lora 48) if at all possible. If the mew PSQ's cannot be
published in the next ISM change. MS viii delete the privacy procedures in the
current IS) s for the 48, 49 and 48-3.
(2) Phis will slimiest* the 703 end 704 anialopos.
b. Delete MS Form ISO and revert to the original paragraph 20a language
which required the contractor to retain justification for PCL for review by the
inspector.
. Automated access controls. Approved. Separate letter itll follow.
. 4. Reconcile DISCO printouts. Approved (Attachment 4).
. e. It was agreed to phase-in the $F 189-A as replacement of the DISCO
Vora 482.
(1) 14wly cleared personnel viii execute the SP 189-A.
(2) Previously executed DISCO Forms 482 will continue in force until
there is another security clearance action for that individual at Uhich time
the SF 189-A viii be executed.
(3) Retention of executed SF 189-A forms for the required 30 years
will be by the contractor unless the contractor goes out of business at uhich
time the forms will be forvarded to the CSO. Tor your information, we are
planning to provide for the Larsen ewes to identify those facilities that
forvard their forms to the CSO. and CSO's to retire such forms to a federal
records center.
3. It welcome your comments on changes to the II/ISR to maks further
ellenta.
Lt
Deputy Director
(Industrial Security)
?
4 Attachments
Copy to: Regional Directors
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As we are all aware, the November 1986 ISM contained more changes than any
other revision in its known history. This was due to the recommendations of the
Stilwell Commission. Even so, not all of the approved recommendations had been
included in the November 1986 ISM. Further, Shortly after publishing that
ISM, it became clear that some of its provisions could not be implemented and
ISL 87L-2 announced that SPP's need not be revised until the next ISM revision
was received. In conclusion, you are reminded that SPP's are to be revised,
as appropriate, within four months of receipt of the September 1987 ISM.
5. DEPARTMENT OF STATE REGISTRATION REQUIREMENTS
Federal law (22 USC 2778) and regulations (22 CFR Parts 120-130) require
any person who engages in the business in the United States of either
manufacturing or exporting defense articles or furnishing defense services to
register with the Office of Munitions Control (OAC), U.S. Department of
State. Manufacturers of defense articles must register even if they do not
export. Defense articles include components, parts, accessories, attachments,
firmware, software, and systems, as well as forgings, castings, and machined
bodies for defense articles. Defense services include the furnishing of
technical data or technical assistance related to defense articles.
If your company is engaged in the business activities described above,
and is not registered with OMC, please contact that office for more
information about registration requirements. Questions and requests for
registration material should be addressed to Ms. Shirley Shields, Office of
Munitions Control (PM/MC), Room 800 SA-6, U.S. Department of State,
Washington, D.C. 20520, telephone [phone].
It is requested that you inform your subcontractors and vendors of OMC's
registration requirements. There is strong Administration interest in the
effective enforcement of this legal requirement.
6. NEW PROCEDURES FOR PROCESSING PERSONNEL SECURITY QUESTIONNAIRES (PSQ'S)
Effective with publication of the new ISM, dated September 1987, the
instructions pertaining to the privacy section located on the PSQ's, and the
privacy guidance contained in the instruction booklets for completion of
PSQ's are no longer applicable. While all items on the PSQ's are to be
answered, if the applicant for a clearance believes there is a significant
personal matter which they desire not to disclose to their employer, they may
request an interview with a Defense Investigative Service agent by entering
"DIS Interview Requested" rather than completing the specific item.
Prior to affixing his or her signature to the respective privacy
section, the form may be folded or covered, so that the witness to the
signature will not see the prescribed portion. On completion of the privacy
section, the PSQ, together with the FD 258, Applicant Fingerprint Card, if
applicable, shall be returned to the employer for mailing.
The privacy envelopes (DISCO Forms 703 and 704) will also be eliminated
with the publication of the September 1987 ISM. Contractors are now expected
to defray the costs of submitting completed PSQ's to DISCO. A contractor may
use existing supplies of the government-furnished envelopes; however, the
"postage and fees paid" portion must be covered or obliterated, and proper
postage affixed.
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7. CLASSIFIED INFORMATION NONDISCLOSURE AGREEMENT (SF 189-A)
The September 1987 ISM will introduce the "Classified Information
Nondisclosure Agreement" to the Defense Industrial Security Program as the
replacement to the "Security Briefing and Termination Statement (Industrial
Personnel)" (DISCO Form 482).
On August 3, 1987 the Information Security Oversight Office (IS00)
published a revised rule implementing the SF 189-A. The rule, titled "Points
of Clarification," provides (i) a definition of "indirect" unauthorized
disclosure as used in paragraph 3 of the SF 189-A, and (ii) a notation that
paragraph 7 of the SF 189-A refers to "classified materials which have or may
come" into the possession of the signer of the form. ISOO has initiated a
new printing of the SF 189-A that will incorporate the clarifications listed
above.
The SF 189-A contained in the September 1987 ISM, and those that are
available for use, do not contain the above clarifications. Pending the
issuance of the reprinted forms, contractors should use those currently
available. The points of clarification do not alter the substance of the
agreements reflected in the current forms. However, you should offer anyone
who has expressed concern or has objected to signing the current form the
opportunity to sign it as modified by attaching a copy of the clarifications
and incorporating them by reference on the form itself. The following may be
reproduced for attachment to the SF 189-A:
As used in paragraph 3 of SF 189-A, the word "indirect" refers tb any
situation in which the knowing, willful or negligent action of a party to the
agreement results in the unauthorized disclosure of classified information
even though the party to the agreement does not directly communicate, deliver
or transmit classified information to a person who is not authorized to
receive it. A party to the SF 189-A would violate its nondisclosure
provisions only if he or she knew, or reasonably should have known, that his
or her action would result, or reasonably could result, in the unauthorized
disclosure of classified information.
As used in the third sentence of paragraph 7 of the SF 189-A, the words
"all materials which have, or may have, come into my possession," refer to
"all classified materials which have or may come into my possession,"
exclusively.
8. JAMES S. COGSWELL INDUSTRIAL SECURITY AWARDS FOR 1987
The winners of JAMES S. COGSWELL INDUSTRIAL SECURITY AWARDS FOR 1987 for
superior performance in carrying out security obligations on classified
defense contracts were announced September 29, 1987 by Mr. Thomas J. O'Brien,
Director, Defense Investigative Service, at the 33rd Annual Seminar of the
American Society for Industrial Security held in Las Vegas, Nevada.
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Forty-eight firms were selected to receive the James S. Cogswell Award
named for the first Chief of the Office of Industrial Security. The
recipients were selected from over 12,000 industrial firms having Department
of Defense facility security clearances to perform on classified contracts.
Contractors were chosen on the basis of criteria that included the degree of
security consciousness and cooperation by management, effectiveness of
employee security education and motivation programs, security practices and
procedures, and ability to sustain progressive security systems.
Plaques for outstanding security programs will be presented to:
Analysis & Technology, Inc.
Technical Services Sector
New London, CT 06320
(FSC: 58672) - Ms. Virginia Boiselle, FSO
Analysis and Simulation, Inc.
Buffalo, NY 14225
(FSC: 43833) - Ms. Patricia D. Pfohl, FSO
Comptek Research, Inc.
Vallejo, CA 94590
(FSC: 7W123) - Ms. Debra L. Martin, FSO
EG&G Washington Analytical Services Center, Inc.
Orlando, FL 32826
(FSC: 5Z030) - Ms. Laura J. Hilder, FSO
EXCEL Services, Inc.
Lowry AFB, CO 80230
(FSC: 7W492) - Mr. E. Dale Boggle, FSO
Frontier Engineering, Inc.
Norco, CA 91766
(FSC: 9V743) - Mr. Richard W. Flory, FSO
General Dynamics Corporation, Electric Boat Division
Bangor Facility
Poulsbo, WA 98370
(FSC: 8T328) - Mr. James J. Sullivan, FSO
General Image Engineering Corporation
Provo, UT 84601
(FSC: 7M681) - Ms. Shirley M. Herrera, FSO
Harbert International, Inc.
Birmingham, AL 35244
(FSC: 7W044) - Mr. Charles F. Knight, FSO
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Hercules Incorporated
Hercules Aerospace Products Group
Allegany Ballistics Lab
Mineral County, WV 20753
(FSC: 70272) - Mr. Frederick A. Pfeiffer, FSO
Honeywell, Inc., Sperry Defense Systems Division
Albuquerque, NM 87113
(FSC: 07187) - Mr. David A Coulie, FSO
Hughes Aircraft Company, Denver Engineering Facility
Englewood, CO 80111
(FSC: 5R497) - Mr. David R. Tomes, FSO
International Business Machines Corporation
Federal Systems Division
Gaithersburg, MD 20879
(FSC: 4N497) - Mr. Paul J. Kelly, FSO
Irvine Sensors Corporation
Costa Mesa, CA 92626
(FSC: 54266) - Ms. Gail Lafferty, FSO
ITEK Corporation, Litton Applied Technology Division
Warner Robins, GA 31093
(FSC: 2L335) - Ms. Judith C. Inman, FSO
ITT Corporation, Defense Communications Division
(Florida Operations)
Cape Canaveral, FL 32920
(FSC: 3T678) - Mr. Anton J. Marth, FSO
Jaycor
San Diego, CA 92121
(FSC: 3M687) - Mr. Ray Arias, FSO
Kevlin Microwave Corporation
Woburn, MA 01801
(FSC: 25634) - Mr. John Malin, FSO
Lockheed Missiles & Space Company
Polaris Missile Facility
Charleston, SC 29408
(FSC: 5D207) - Mr. Charles J. Watts, FSO
Logicon, Inc.
Bellevue, NE 68005
(FSC: 8R427) - Mr. Joseph H. Towne, FSO
Martin & Stern, Inc., T/A MSI
Chantilly, VA 22021
(FSC: 63222) - Mr. Daniel F. Coyle, FSO
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Mason & Hanger - Silas Mason Co., Inc.
Lexington, KY 40504
(FSC: 14913) - Mr. James E. Obermiller, FSO
McDonnell Douglas Corporation
Huntington Beach, CA 92647
(FSC: 18355) - Mr. Joseph R. Carrow, FSO
Metric Systems Corporation
Ft. Walton Beach, FL 32548
(FSC: 12339) - Ms. Barbara Fallin, FSO
Mission Research Corporation
Santa Barbara, CA 93102
(FSC: 1G992) - Ms. Mary L. Sourmany, FSO
Nations, Inc.
Shrewsbury, NJ 07701
(FSC: 6X191) - Mr. John N. Parrigin, FSO
Northrop Worldwide Aircraft Services, Inc.
Vance AFB, OK 73701
(FSC: 9F913) - Mr. Donald E. Snowden, FSO
Omni Analysis Company
San Diego, CA 92126
(FSC: 7R186) - Mr. Elmer P. West, FSO
PRC Kentron, Inc., WSMR Stallion Range Center
Socorro, NM 87810
(FSC: 3X899) - Mr. James R. Finley, FSO
R. M. Vredenburg & Co.
McLean, VA 22102
(FSC: 1B633) - Ms. Robin L. Rhiner, FSO
Rockwell International Corporation
Science Center
Thousand Oaks, CA 91360
(FSC: 2D609) - Ms. Sierra Sue Chmiel, FSO
SciTec, Inc.
Princeton, NJ 08540
(FSC: 2S031) - Ms. Deborah E. Jans, FSO
Southern Research Institute
Birmingham, AL 35255
(FSC: 24048) - Mr. Alex J. Muro, FSO
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Space Applications Corporation
Santa Ana, CA 92707
(FSC: 3D135) - Ms. Irene Murphy, FSO
Sterling Federal Systems, Inc.
Intelligence & Military Division
Bellevue, NE 68005
(FSC: 3U880) - Ms. Karen M. Lund, FSO
Teledyne Brown Engineering
Lexington, MA 02173
(FSC: 9Y091) - Ms. Gretchen E. Pierce, FSO
Teledyne Microwave
Mountain View, CA 94043
(FSC: 24022) - Ms. Carol McNelly, FSC
Texas Instruments Incorporated
Ridgecrest, CA 93555
(FSC: 7B136) - Ms. Mary Anne Arnold, FSO
The Mitre Corporation
Bellevue, NE 68005
(FSC: 3T282) - Mr. Gene D. Knapp, FSO
The Mitre Corporation
Colorado Springs, CO 80906
(FSC: 6D573) - Ms. Mary Margaret Brummeler, FSO
The Mitre Corporation
HQ USAREUR
(Heidelberg, Federal Republic of Germany
APO New York, NY 09063
(FSC: 4B080) - Mr. Robert J. Roberto, FSO
Tri-State Motor Transit Co.
Joplin, MO 64802
(FSC: 64573) - Mr. Walter C. Burch, FSO
Trident Data Systems, Inc.
San Antonio, TX 78213
(FSC: 5Z045) - Mr. Larry G. Decker, FS0
TSC, Inc., dba Technology Service Corporation
Santa Monica, CA 90405
(FSC: 1G764) - Ms. Stephanie L. Esbin, FSO
United Technologies Optical System, Inc.
Optics & Applied Technology Laboratory
West Palm Beach, FL 33402
(FSC: 8U320) - Ms. Lyla H. Marsalis, FSO
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. -
Vectronics Microwave Corporation
Middlesex, NJ 08846
(FSC: 32846) - Mr. Stanley Miskewicz III, FSO
Veda incorporated
Arlington, VA 22202
(FSC: 9B445) - Ms. Gail F. Alexander, FSO
Vitro Corporation
Chesapeake, VA 23320
(FSC: 9B364) - Ms. Sharon Bishop, FSO
0R G. SCHWALLS
Deputy Director
(Industrial Security)
Attachment
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"National security information is official information that relates to our national defense
or foreign relations."
National Security Information
What is it? Who controls it? How does the system function?
Learn the answers to these questions and more from
the new video by the Information Security Oversight
Office (IS00). Colorful and informative, it's ideally
suited to complement initial and refresher briefings.
The video is in three segments:
Overview- Highlights of original and derivative
classification, marking, declassification and
safeguarding (20 min) ,
Marking- A tutorial on proper marking practices and
procedures (15 min)
Safeguarding- Highlights of basic safeguarding
requirements (12 min)
The video is unclassified, very reasonably priced, and
available in all video and slide/tape formats. !SOO has
designed the briefing for use by civilian and military
agencies, and their contractors. All three segments
emphasize the need for active communication
between program offices and security managers or
classification specialists.
For further information about the briefing contact
'SOO, [phone].
For order information, contact The Dub Center,
[phone].
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DEFENSE INVESTIGATIVE SERVICE
WRECTORATE FOR INDUSTRIAL SECURITY
ISN HALF STREET.
WASHINGTON, D.C. 20324
OFFICIAL BUSINESS
PENAL TY FOR PR ivATE USE .$300
ATTN: SECURITY SUPERVISOR
CIA-RDP89B01356R000200350005-5
1 BULK RATE
POSTAGE & FEES PAID
DEFENSE INVESTIGATIVE SERVICE
PERMIT No. G -131
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C OP T. ES
DEPARTMENT OF DEFENSE. DEFENSE INVESTIGATIVE SERVICE ?DIR
INDUSTRIAL SECURITY
LETTER
Imhistrial Security Letters will be issued periodically to inform Industry, User Agencies and DoD Activities of developments relating
to industrial security. The contents of these Letters are for information and clarification of existing policy and requirements. Information
contained herein does not represent a change of policy or requirements until and unless officially incorporated in the Industrial
Security Manual. Local reproduction of these Letters in their original form for the internal use of addressees is authorized Suggestions
articles for inclusion in the Letter will be appreciated. Articles or ideas contributed will become the property of DI S Contractor
requests for copies of the Letter and inquiries concerning specific information should be addressed to the cognizant security office, for
referral to the Directorate for Industrial Security, HD DIS, as appropriate.
ISL 87L-4
September 29, 1987
1. REJUSTIFICATION OF NEED FOR A SECURITY CLEARANCE FOR EMPLOYEES ASSIGNED
OVERSEAS
2. CONVERSION OF RECIPROCAL PERSONNEL SECURITY CLEARANCES (RPCL'S) TO LAA'S
3. NEW VIDEO FROM THE INFORMATION SECURITY OVERSIGHT OFFICE (IS00)
4. REVISION OF THE STANDARD PRACTICE PROCEDURES
5. DEPARTMENT OF STATE REGISTRATION REQUIREMENTS
6. NEW PROCEDURES FOR PROCESSING PERSONNEL SECURITY QUESTIONNAIRES (PSQ'S)
7. CLASSIFIED INFORMATION NONDISCLOSURE AGREEMENT (SF 189-A)
8. JAMES S. COGSWELL INDUSTRIAL SECURITY AWARDS FOR 1987
1. REJUSTIFICATION OF NEED FOR A SECURITY CLEARANCE FOR EMPLOYEES ASSIGNED
OVERSEAS
Paragraph 96b, Industrial Security Manual (ISM), requires that
contractors who have assigned cleared employees overseas rejustify to DISCO
their continuing need for a security clearance two years from the date of
initial assignment and every two years thereafter. The justification must
state why the employees will require access to classified information overseas
in performance of assigned duties, to include identification of the contract
or program under which such access is necessary.
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You are encouraged to submit to DISCO the necessary rejustification as
early as possible after the two-year anniversary. When the rejustification is
not received by DISCO, a reminder will be mailed to the facility. If
continuation of a clearance cannot be justified, or if DISCO does not receive
a response to their reminder, the personnel security clearance will be
administratively terminated.
2. CONVERSION OF RECIPROCAL PERSONNEL SECURITY CLEARANCES (RPCL's) TO
LIMITED ACCESS AUTHORIZATIONS (LAA's)
Foreign nationals can no longer hold RPCL's. A foreign national may be
eligible for an LAA if:
(1) Access to classified information is required at a cleared contractor
facility under foreign ownership, control, or influence and the terms of the
facility clearance permit access by foreign nationals, or
(2) Access to classified information is required for performance on a
contract, subcontract, or cooperative project involving the government of the
individual's country of citizenship, and
(3) There is a bilateral security agreement containing provisions for
the exchange of security assurances between the U.S. Government and the
government of which the individual is a citizen. The CSO should be consulted
to determine the existence of a security agreement containing this provision.
Previously granted RPCL's are to be changed to LAA's when an employee meets
the criteria contained in paragraph 31.2a of the ISM. The Industrial Security
Representative servicing your facility will review all RPCL's and assist in
the change to LAA's. Those RPCL's that do not meet the new requirements are
to be administratively terminated. If continuation of access through an LAA
is appropriate, the Letter of Consent (DISCO Form 560) shall be annotated with
the words "Limitations of paragraph 31.3, ISM, apply."
3. NEW VIDEO FROM THE INFORMATION SECURITY OVERSIGHT OFFICE (IS00)
ISOO has recently developed a video tape on information security entitled
National Security information (flyer attached). The briefing is an excellent
educational and training tool and is available for loan in the training
libraries in each Cognizant Security Office. Please contact your Regional
Education and Training Specialist if you wish to borrow a copy.
4. REVISION OF THE STANDARD PRACTICE PROCEDURE
We are frequently asked: "When is a new ISM or change effective and when
do I have to amend my SPP?"
First, a new ISM or change is effective the date of the change (paragraph
1g). However, as a practical matter, we consider a new ISM or change to be
effective upon receipt by the contractor facility.
Second, policy currently requires that the SPP be revised within four
months after receipt of the change (paragraph 5s). It should be emphasized
that the contractor must change his/her SPP only if the particular ISM change
is in fact applicable to his operation.
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