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Security Clearance Moratorium on Contrator Clearances
The backlog of background clearance investigations currently numbers in the ballpark of nearly half a million applications. This having been a concern for quite some time, in late 2005 it was announced that the Office of Management and Budget would join an effort with the Office of Personnel Management to reduce the backlog. The joint effort was set to commence in March of 2006, however the inability to set events in motion led the Government Accountability Office (GAO) to place the clearance review program on a high risk shortlist. Citing adverse risks to national security and tremendous financial impacts to federally funded programs, the Defense Security Service (DSS) was called upon to place a moratorium on contractor clearances.
The DSS has put into effect a moratorium on processing contractor security clearances by the Defense Industrial Security Clearance Office. Budgetary shortcomings combined with an over extended workforce facing an immense number of applications for periodic reinvestigations has led the DSS to halt investigations related to all levels of clearance except for secret as of April 28, 2006. This moratorium has been lifted for new secret clearances, yet remains in effect for top secret clearances and reinvestigations , which comprise over half of the investigation backlog.
Significant cost and performance impacts on the handling of government contracts by government contractors may be felt as a result of the decision of the DSS to suspend the security clearance program. Careful consideration should be taken by contractors who stand to experience an increase in costs and any additional adverse reactions resulting from the DSS moratorium. GovK's government contracts specialists can help analyze your current status and shed light upon any possible contractual remedies.
If you are a government contractor, this means your business has the potential to suffer from a significant impact should your work require that your personnel be cleared. The demand for cleared employees is already high, with contractors needing to pay higher salaries and significant bonuses to acquire already cleared employees.
The DSS moratorium, in addition to contributing to salary inflation, has already begun to create performance issues inclusive of the inability to meet schedules, and create contractdeliverables which require work to be done by cleared contract employees.
If you currently hold a government contract which requires cleared contract employees, in certain circumstances you may be entitled to equitable adjustments to your contract in order to offset the impact of the government's inability to process security clearances in a timely manner.
Contact GovK to set up a consultation in regards to the consideration of possible contractual remedies.
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