View Rule

We're revising 32 CFR 2004 to incorporate requirements from 32 CFR 148, National Policy and Implementation of Reciprocity of Facilities.  32 CFR 148 is an old regulation and portions of it are out of date or no longer relevant. The remaining portions connect to the NISP, which is the subject of 32 CFR 2004, and will be more appropriately included in the NISP directive and integrated with other reciprocity and facility requirements. This will help streamline and better integrate regulatory requirements on the same topic, will allow Department of Defense to cancel the outdated 31 CFR 148 and thus reduce regulatory burden on contractors and agencies, and will better enable reciprocity between agencies with regard to facility determinations for classified contracts.  In addition, this rulemaking will update the international section of 32 CFR 2004 to reflect current practices and international situations with respect to trade and export controls and to reflect concern areas raised by Departments of State and Defense.  This section was in the regulation prior to the 2018 overall revision (the first in 20 years), but was not able to be revised in time, so was reserved for a later revision. This rulemaking includes that planned revision. And, finally, we are revising 32 CFR 2004’s section on national interest determinations to streamline the foreign ownership control and influence (FOCI) assessments, to incorporate changes in NISP Executive Agent policy arising from the National Defense Authorization Act of fiscal year 2018, and to improve consistency in agency reciprocity in accepting FOCI analysis.