In Short
The Situation: The United States government has
been ramping up its efforts to protect sensitive data and is making
clear it expects its contractors to protect data they receive and
create. According to a recent Inspector General report, the United
States Department of Defense ("DoD") contractors are not
consistently implementing mandatory cybersecurity controls.
The Result: Defense contractors'
cybersecurity posture is under the microscope—cybersecurity
audits are increasing, and the DoD is relying on cyber-compliance
in contract award and cancellation. Moreover, cybersecurity-based
False Claims Act cases are becoming a common occurrence.
Looking Ahead: Companies must understand and
implement their obligations to safeguard information received or
generated under a DoD contract. As Katie Arrington, chief
information security officer of the Pentagon's acquisition
policy office, reportedly told contractors this past Wednesday:
"This is a change of
