The Department of Defense (DD) Form 254 “Contract Security Classification Specification” provides a contractor (or a subcontractor) the security requirements, classification guidance, and handling procedures for classified material received and/or generated on a classified contract. The Federal Acquisition Regulation (FAR) requires that a DD Form 254 be incorporated in each classified contract, and the National Industrial Security Operating Manual (NISPOM) (4-103a) requires that a DD 254 be issued by the government with each Invitation for Bid, Request for Proposal (RFP), or Request for Quotation (RFQ).

Purpose: The Government uses the DD Form 254 to convey security requirements to contractors when contract performance requires access to classified information.

DD Form 250 Development

See the guide below for preparing the DD Form 254 for more information.

• Form: DD Form 254 “Contract Security Classification Specification” – April 2018

• Instructions: DD 254 Instructions – April 2018

• Submission: DD Form 254 “NCCS Implementation Guidance”

DD Form 254 Review Requirement

The DD Form 254 is required to be reviewed every two years. The program should conduct this review in coordination with the program manager of the requiring activity and contracting office to ensure that existing security requirements are consistent with the contract requirements.

If the review is performed and no changes are required, the program will provide the Contracting Officer with a copy of the review. The Contracting Officer will then send to the contractor, in writing, notification that the DD Form 254 remains valid until the next review or a change occurs in the program.

If the review is performed and changes have been required the program and ISS must provide the Contracting Officer with a revised copy. The Contracting Officer will then prepare a bilateral modification to the contract incorporating the new DD Form 254.

DD Form 254 Update Requirement

Revisions to the DD Form 254 will be completed whenever the security guidance or pertinent information changes, or when a change in mission occurs impacting the contract, to ensure security requirements remain current and relevant throughout the contract lifecycle. This includes contractor address changes if they are performing classified work at their facility.

DD Form 254 Electronic Submission

The National Industrial Security Program Contracts Classification System (NCCS) module of the Procurement Integrated Enterprise Environment (PIEE) is used for the electronic submission of the DD Form 254.

• Guidance: DD Form 254 “NCCS Implementation Guidance”
• Website: Procurement Integrated Enterprise Environment (PIEE)

AcqNotes Tutorials

DD Form 254 Background

The Security Agreement (DD Form 441), executed between the government and all cleared facilities under the NISP, obligates the Government to provide the contractor appropriate classification guidance for the protection of the classified information, furnished to or generated by, the contractor in the performance of a classified contract. The Government fulfills this obligation by incorporating a “Security Requirements Clause” (“clause”) and a DD Form 254 in each classified contract. The “clause” identifies the contract as a “classified contract” and the DD Form 254 provides classification guidance and the specific security requirements. [1]

AcqLinks and References:

• DD Form 254 “Contract Security Classification Specification” – April 2018
• DD 254 “Instructions” – April 2018
• Guide: A Guide for the Preparation of a DD Form 254 – June 2013
• [1] Guide: Army DD Form 254 Preparation Guide – 2010
• Guide: DD Form 254 “NCCS Implementation Guidance”
• Website: Procurement Integrated Enterprise Environment (PIEE)

Updated: 6/13/2021

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