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A Guide for the Preparation of a DD Form 254DoD Contract Security Classification SpecificationThe purpose of this document is to ensure government and industry-wideuniform application of the DD Form 254. Agency-specific guidance may also beavailable. DD Form 254 contains 17 items. Each item may have one or more boxes.Item 1. Clearance and Safeguarding.1a. Facility Clearance (FCL) RequiredInsert the highest level of facility clearance required for the contractor to perform on thecontract. Only one of three classification levels should be listed in this box: Confidential,Secret or Top Secret. Do not cite special categories such as Restricted Data,COMSEC, SCI (Sensitive Compartmented Information), etc. The contractor must have an FCL at least as high as the classification levelindicated. If the contractor’s FCL is lower than the classification level indicated, theGCA or prime contractor must sponsor the contractor for an FCL upgrade. To verifythe contractor’s facility clearance, contact the DSS (Defense Security Service)Central Verification Activity at (888) 282-7682 or log on to the DSS web site(www.dss.mil) go to the application tab in the upper right-hand corner, click on ISFD(Industrial Security Facility Database), then follow the instructions to either login orrequest access.NOTE: It is critical to correctly identify the appropriate FCL level for the work tobe performed on the contract. If you are unsure of the FCL level required, talkto your program manager. Setting the level too high may cause unnecessaryFCL upgrades which may cause the contractor undue costs and delay contractaward.1b. Level of Safeguarding RequiredInsert the highest level of classified material the contractor will be required to store at itsown facility. The classification level can not be higher than the level specified in Item 1a. If no classified material will be stored at the contractor’s site, then “None” shouldbe entered.NOTE: This item refers only to the contractor’s requirements tosafeguard/protect classified information at its own facility.-XQH

A Guide for the Preparation of a DD Form 254DoD Contract Security Classification SpecificationItem 2. This Specification is for:Insert only one “X” into the appropriate box, although information may be entered intoboth “a” and “b” (i.e., prime contract number and subcontract number).2a. Prime Contract Number Used when a GCA issues guidance to the Prime Contractor. The issuing activityenters the contract number. If Item 11e. is marked “YES” and the services to be performed do not apply to aspecific contract (for example guard services or maintenance), enter the term“Multiple Contracts” in 2a instead of the prime contract number.2b. Subcontract Number Used when there is a Prime/Subcontractor relationship. The contractor issuingthe subcontract enters the subcontract number. The Prime contractor’snumber must also be entered in 2a.2c. Solicitation or other number Used for an RFP (Request For Proposal), RFQ (Request For Quote), IFB(Invitation For Bid), or other solicitation, that will involve access to classifiedmaterial for the contract performance, regardless of whether or not acontractor will require access to classified information during pre-contractphases of the procurement. The issuing activity enters the solicitation numberand the date by which bids are due.-XQH 2

A Guide for the Preparation of a DD Form 254DoD Contract Security Classification SpecificationItem 3. This Specification Is:Insert only one “X” into the appropriate box, although information may be entered intoboth “a” and “b.”.3a. OriginalOriginal DD Form 254s are issued: For a solicitation for a classified contract, whether or not the actual bid packagecontains classified information. Upon the award of a classified contract Upon the award of a classified subcontractThe date of issuance is entered by the GCA or Prime Contractor for a subcontract.NOTE: ‘Original date’ refers to the release date of the DD Form 254. This datewill not change and will continue to show on any subsequent revisions of the DDForm 254.3b. Revised Revised DD Form 254s are issued when there is a change to classificationguidance or security requirements of the contract. Give a sequential numberto each revision and enter the date of the Revised DD Form 254. Enter the date of the Original DD Form 254 in 3a.NOTE: Revised DD Form 254s should be numbered sequentially starting withnumber 1. Revised DD Form 254s are required any time there is a change to thesecurity requirements or to the classification guidance. Revised DD Form 254sshould be prepared and reviewed by the program, contracts and security offices.Revised DD Form 254s must be incorporated into the contract by modification.-XQH

A Guide for the Preparation of a DD Form 254DoD Contract Security Classification Specification3c. Final A “Final’ DD Form 254 is ONLY used to authorize additional retention of classifiedmaterials. The NISPOM authorizes an automatic two year retention period beyondthe end of the contract for all classified materials received or generated during thecontract period. Enter the date the Final DD Form 254 is issued. Complete Item 5 as appropriate. Enter the date of the Original DD Form 254 in 3a.NOTE: In addition to a final DD Form 254, the GCA may also authorizeadditional retention by letter, e-mail, or other correspondence. It isrecommended that authorization for additional retention always be provided inwriting.June 20134

A Guide for the Preparation of a DD Form 254DoD Contract Security Classification SpecificationItem 4. Is this a Follow-On Contract?A Follow-On Contract is a contract that is awarded to the same contractor orsubcontractor for the same item or services as a preceding contract. When thiscondition exists, mark “YES” and enter the preceding contract number in the spaceprovided. This item authorizes the contractor or subcontractor to transfer materialreceived or generated under the preceding contract to the new contract. The materialtransferred should be reflected in Item 13.June 20135

A Guide for the Preparation of a DD Form 254DoD Contract Security Classification SpecificationItem 5. Is this a Final DD Form 254?If this is a Final DD Form 254, mark “YES” and enter the date of the contractor’srequest for retention and the authorized period of retention in the spaces provided. Ifthis is not for a FINAL, mark “NO.”NOTE: A Final DD Form 254 is used only if the contractor requests the right toretain any project related documents beyond NISPOM permitted timeframe (SeeItem 3c.). If the contractor needs the materials for a longer period, permission mustbe requested in writing. It is recommended that the contractor maintains a copy ofthis formal request until retention authorization is received from the GCA. It is up tothe GCA to determine if the materials should be destroyed, returned, or retained bythe contractor.-XQH

A Guide for the Preparation of a DD Form 254DoD Contract Security Classification SpecificationItem 6. ContractorUsed when a GCA issues guidance to a Prime Contractor. Enter information as follows:NOTE: Also used by the Prime Contractor when issuing a subcontractor6a. Name and address of the contractorUse the contractor’s DSS-approved classified mailing address if different fromits physical address.6b. The contractor’s CAGE codeNOTE: The CAGE (Commercial and Government Entity) code is a governmentissued unique identifier required for all companies who do business with thegovernment and can be verified through the Defense Logistics InformationService website at http://www.dlis.dla.mil/cage welcome.asp. It is important tonote that not all facilities with CAGE codes are cleared facilities. To verify acontractor’s facility clearance see guidance in Item 1a.6c. The appropriate CSO and addressNOTE: Enter the DSS Cognizant Security Office (CSO) and its address. Thelocal DSS Cognizant Security Office (CSO) and Field office locations can befound by going to http://www.dss.mil/isp/dss oper loc.html-XQH

A Guide for the Preparation of a DD Form 254DoD Contract Security Classification SpecificationItem 7. SubcontractorIf the DD Form 254 is for a subcontract, enter information as follows:7a. Name and address of the subcontractorUse the subcontractor’s DSS-approved classified mailing address if differentfrom its physical address.7b. The subcontractor’s CAGE codeNOTE: The CAGE (Commercial and Government Entity) code is a governmentissued unique identifier required for all companies who do business with thegovernment and can be verified through the Defense Logistics InformationService website at http://www.dlis.dla.mil/cage welcome.asp. It is important tonote that not all facilities with CAGE codes are cleared facilities. To verify acontractor’s facility clearance see guidance in Item 1a.7c. The subcontractor’s CSO and addressNOTE: Enter the DSS Cognizant Security Office (CSO) and its address. Thelocal DSS Cognizant Security Office (CSO) and Field office locations can befound by going tohttp://www.dss.mil/isp/dss oper loc.html-XQH

A Guide for the Preparation of a DD Form 254DoD Contract Security Classification SpecificationItem 8. Actual PerformanceIf the work is to be performed at a location other than the one specified in Item 6a (or7a, as appropriate), enter information as follows:8a. Facility name and address8b. The CAGE code of the facility where the work will be performed.8c. The appropriate CSO and addressThis item is used when all contract performance will occur at another clearedsite of the same company. If the classified work will take place at the facility identified in Item 6a (or 7a)leave blank. If there are more places of performance, identify them in Item 13. Include thefacility name, address and CAGE code and send a copy of the DD Form 254to the appropriate CSO(s). NOTE: Keep in mind that by identifying an actual performance location, you arelimiting all performance under the contract to the location(s) identified in item 8.-XQH

A Guide for the Preparation of a DD Form 254DoD Contract Security Classification SpecificationItem 9. General Identification of This ProcurementEnter a short, concise, and unclassified description of the procurement. Theprocurement could be research, development, production, study, services, etc.NOTE: Provide enough detail to provide an adequate picture of the project.Keep this field short but informative.-XQH

A Guide for the Preparation of a DD Form 254DoD Contract Security Classification SpecificationItem 10. This Contract Will Require Access To:Mark all items “YES” or “NO,” as appropriate to the requirements of the contract. Anexplanation of each item follows.IMPORTANT: These are access requirements for the contractor and theiremployees. It does not refer to safeguarding. Fill this out regardless of wherethe access will occur (contractor’s facility, a government facility).,03257 17: Access to proscribed information by a company cleared under anSSA may require a NID (National Interest Determination) by the GCA.10a. Communications Security Information (COMSEC)COMSEC information includes accountable or non-accountable COMSEC informationand controlled cryptographic items (CCI). If any of the following is involved the contractor must have a COMSEC accountand item 11h must be marked “YES:”- Accountable COMSEC material- Secure Telephone Equipment (STE)- Other key-able COMSEC devices Prior approval from the GCA is required in order for a Prime Contractor to grantCOMSEC access to a subcontractor. The Prime Contractor will (SC) alsonotify the NSA (National Security Agency) Central Office of Record (COR)before negotiating or awarding subcontracts.NOTE: If accountable, COMSEC material used under the contract requiredtransmission via the Defense Courier Service. Item 11k must also be marked“YES.”-XQH