REGULATIONS OF THE DEPARTMENT OF DEFENSE [Directive issued February 2, 1955, No. 5220.6] Section I GENERAL 1. Purpose. This regulation prescribes the uniform standard and criteria for determining the eligibility of contractors, contractor employees, and certain other individuals as set forth herein, to have access to classified defense information. It also establishes the administrative procedures governing the disposition of all cases in which a military department, or activity thereof, has made a recommendation or determination (a) with respect to the denial, suspension or revocation of a clearance of a contractor or contractor employee, and (b) with respect to the denial or withdrawal of authorization for access by certain other individuals. 2. Definitions. For the purpose of this regulation: a. The term "contractor" means an industrial, educational, commercial, or other entity which has executed a contract or a Department of Defense Security Agreement (DD Form 441) with a Department of Defense activity. b. The term "contractor employee" means any United States citizen or immigrant alien who is an official or employee of a contractor. C. The term "clearance" means an administrative determination, in accordance with approved policy, that a contractor or contractor employee is eligible to have access to classified information of specified categories classified in accordance with Executive Order 10501 which is necessary for the accomplishment of the particular missions established by the military departments or activities thereof. A clearance is an administrative determination that the granting of such approval is clearly consistent with the interests of the national security. In the case of a contractor, a clearance is an approval for the contractor involved to have access to specified categories of classified information necessary in connection with the bidding, negotiation, award, performance, or termination of contracts with a military department or activities thereof which involves access to such information. In the case of a contractor employee, a clearance is an approval for the amployee to have access to specified categories of classified information necessary for the performance of his work with a particular contractor on contracts with a military department or activity thereof which involve access to such information. 3. Policy. a. While the Department of Defense will assume, unless information to the contrary is received, that all contractors and contractor employees are loyal to the Government of the United States, the responsibilities of the military establishment necessitate vigorous application of policies designed to minimize the security risk incident to the use of classified information by such contractors and contractor employees. Therefore, adequate measures will be taken to provide continuing assurance that no contractor or contractor employee will be granted a clearance if available information indicates that the granting of such clearance may not be clearly consistent with the interests of the national security. At the same time, every possible safeguard within the limitations of national security will be provided to ensure that no contractor or contractor employee will be denied a clearance without an opportunity for a fair hearing. b. The denial or revocation of a clearance in and of itself does not necessarily carry any implication that the individual is disloyal to the United States. Denial or revocation of a clearance for access to classified information of a specific classification category or categories results from a determination that the granting of such clearance is not clearly consistent with the interests of the national security. Such a determination would, of course, be made in the case of a disloyal individual. However, there are many other reasons, unrelated to loyalty, which may result in such a determination and thus require the denial or revocation of a clearance. Since a clearance relates only to access to classified defense information, the denial or revocation of a clearance to a contractor or contractor employee does not preclude his participation in unclassified work. 4. Release of Information. All personnel in the Program will comply with applicable directives pertaining to the safeguarding of classified information and the handling of investigative reports. No classified information, nor any information which might compromise investigative sources or methods or the identity of confidential informants, will be disclosed to any contractor or contractor employee, or to his lawyer or representatives, or to any other person not authorized to have access to such information. In addition, in a case involving a contractor employee the contractor concerned will be advised only of the final determination in the case to grant, deny, or revoke clearance, and of any decision to suspend a clearance granted previously pending final determination in the case. The contractor will not be given a copy of the Statement of Reasons issued to the contractor employee except at the written request of the contractor employee concerned. 5. Program. There is hereby established the Industrial Personnel Security Review Program, consisting of the following elements: 8. The Office of Industrial Personnel Security Review. b. The Industrial Personnel Security Screening Board (hereinafter called the Screening Board). c. The Industrial Personnel Security Hearing Boards (hereinafter called the Hearing Boards). a. The Industrial Personnel Security Review Board (hereinafter called the Review Board). 6. Scope of Program. 8. The procedures established in this regulation will be applicable to all cases in which: #Revised Mar 19, 59 (1) An activity of a military department has recommended that that clearance of a contractor or contractor employee be denied or revoked; (2) An activity of a military department has suspended (3) An activity of a military department has denied or with- (4) Action is requested by the head of the military department concerned, or by the Secretary of Defense. b. Once a clearance has been suspended, an authorization for access denied or withdrawn, or a Statement of Reasons issued, these procedures will be applicable to individuals even if their employment has been terminated. c. Except at the request of the Secretary of a military department concerned, or the Secretary of Defense, determinations will not be made under the Program in cases: (1) Involving access to research, development and production of cryptographic equipment; (2) Originating outside the continental limits of the United States; (3) Involving denial, suspension or revocation of clearance (4) Involving solely a determination under the provisions of (5) Involving contractors which are under foreign ownership, control or influence. Section II ORGANIZATION 7. a. Office of Industrial Personnel Security Review 1. The Office of Industrial Personel Security Review will be headed by a civilian Director appointed by the Secretary of Defense after consultation with the Secretaries of the Military Departments. The Director shall be responsible to the Secretary of Defense and the Secretaries of the Army, Navy, and Air Force for administering the Industrial Personnel Security Review Program, including its constituent boards. He will be responsible for ensuring that the Screening, Hearing, and Review Boards are provided with such advice, assistance, and personnel, including legal and security advisors, as he considers necessary to enable the Boards properly to carry out their functions under this Program. He will have such professional, technical, and clerical staff as he may require to carry out his responsibilities, as set out herein, and such other related responsibilities as may be prescribed. The Director is authorized to obtain information, assistance, and advice directly from any activity of the Department of Defense, and, in accordance with established policies, from other agencies of the Government. The Director will bring to the attention of the Secretary of Defense and the Secretaries of the Military Departments any case or significant development which, in his judgment, warrants their attention. He shall prepare monthly reports on the case loads of the boards and the status of cases pending before the boards. The Director may issue such supplemental instructions, not inconsistent with this regulation, as may be desirable for the administration and efficient operation of this Program, including rules for the processing of cases, the conduct of screenings, hearings and reviews, and for guidance in the application of the standard and criteria set forth in Section III. 2. The Director, in consultation with appropriate security offices, will develop such implementing procedures as are necessary to safeguard the security of classified information and investigative reports made available to any element of the Program. 3. The Office of Industrial Personnel Security Review will be located in the Pentagon and will be supported administratively by the Office of the Secretary of Defense. The military departments will make appropriate allocations of funds, military and civilian personnel, and personnel spaces. 4. Communications will be addressed to the Director, Office of Industrial Personnel Security Review, The Pentagon, Washington 25, D. C. b. Department of the Army The Department of the Army will have operational control and super* vision over the Central Index Personnel and Facility Security Clearance File (hereinafter called the Central Index File). The complete files of the records of cases processed by the Army-Navy-Air Force Personnel Security Board, the Industrial Employment Review Board, the Eastern, Central, and Western Industrial Personnel Security Boards, and the Boards established by this regulation shall be maintained as a part of the Central Index File. # * * * #Revised Jul 11, 55 8. Industrial Personnel Security Screening Board The Screening Board will be located in the Office of Industrial Personnel Security Review and will be responsible for the performance of the duties and functions hereinafter prescribed. b. The Secretary of each military department will appoint one or more members, military or civilian, to the Screening Board, as the case load requires. Any three members so appointed, one from each military department, will constitute a quorum-panel so that more than one panel may be convened at the same time. The Director will designate one member to serve as Chairman of the Screening Board. c. The Screening Board will have jurisdiction over all cases which are referred to it in accordance with this regulation. 9. Industrial Personnel Security Hearing Boards a. There are hereby established three Hearing Boards to be known as the New York, the Chicago and the San Francisco Industrial Personnel Security Hearing Boards and to be located in such cities respectively. Additional Hearing Boards may be established by the Director with the approval of the Secretaries of the Army, Navy and Air Force. Panels of existing Hearing Boards, convened at other locations, will be utilized when necessary to ensure prompt and convenient hearings. Each Hearing Board will be responsible for the performance of the duties and functions hereinafter prescribed. b. The Secretary of each military department will appoint one or more members, military or civilian, to each Hearing Board, as the case load requires. Appropriate local commanders designated by each Secretary will submit nominations through the Director, who will review the qualifications of each nominee and make an appropriate recommendation to the Secretary concerned. In the letters submitting the nominations the designated commander will include a statement that in his personal opinion the nominees are persons of responsibility and are of mature judgment and balance who can be counted upon to proceed in a fair and judicial manner. The Director will designate one civilian member to serve as Chairman of each Board. Any three members, one from each military department, and including at least one civilian, will constitute a quorum-panel so that more than one panel may be convened at the same time, if required. c. Each Hearing Board will have jurisdiction to hear and determine all cases referred to it in accordance with this regulation. d. The respective Hearing Boards will be located as indicated in subparagraph a. of this paragraph, but may convene at such locations or commands as the Director deems appropriate and convenient. e. (1) Except as provided in subparagraph f. of this paragraph, the Hearing Boards will be supported administratively by the following military commanders: New York Industrial Personnel Security Hearing Board: Chicago Industrial Personnel Security Hearing Board: San Francisco Industrial Personnel Security Hearing Board: (2) Each of the above-named commanders will be responsible for the administration of the Board located within his command and for the development of implementing procedures to safeguard classified information made available to the Board. Each commander will appoint an Executive Secretary, a Security Advisor, Revised September 29, 1958 |