A Lighter Touch — Final FAR Rule Issued On Safeguarding Contractor Information Systems

On Monday, May 16, 2016, the FAR Council is expected to issue its long- awaited final FAR rule ("the Final Rule") on safeguarding contractor information systems. This rule, effective immediately, creates a new contract clause, FAR 52.204-21, that requires government contractor information system safeguarding whenever "federal contract information" is resident on or transiting contractor information systems. It applies broadly to prime contractors and subcontractors, including commercial item contractors.

The Final Rule follows a proposed rule that was issued back on August 24, 2012. Since then, as we've noted in prior alerts, there have been extensive developments in the cyber area for government contractors, including most recently: