How to use this industry guide
Use this guide when your work does not fit a more specialized sector. The baseline question is still practical: what information do you receive, where does it live, who can access it, what does the contract require, and what must you flow down to subcontractors or staff?
What usually drives cybersecurity obligations in this sector
Professional services obligations are usually triggered by contract clauses and data type. Contractors may handle federal contract information, procurement-sensitive materials, business-sensitive agency documents, personnel information, Privacy Act records, CUI, training records, meeting notes, litigation/support files, help desk access, or credentials for government platforms.
Even where a contractor has no CUI, FAR 52.204-21 may require basic safeguarding for covered contractor information systems that process, store, or transmit FCI. If the contractor receives CUI or supports DoD work, the obligation set may expand significantly.
Requirements to review for this sector
Review these areas first:
- FAR 52.204-21 for FCI.
- NIST SP 800-171 where CUI is handled.
- DFARS/CMMC where DoD CUI/CDI is involved.
- Privacy Act obligations where the contractor maintains federal records about individuals.
- Agency-specific security clauses and rules for system access.
- State breach-notification and privacy laws for employee/customer data.
- Subcontractor, consultant, and staffing flowdowns.
- Incident reporting, data return/destruction, and confidentiality clauses.
Implementation focus areas
Professional services contractors should focus on practical data handling: email, collaboration platforms, shared drives, laptops, mobile devices, subcontractors, staffing personnel, and document retention. Evidence should include access controls, MFA, device security, file-sharing rules, data classification procedures, training, incident response, subcontractor agreements, and offboarding processes.
For this sector, cybersecurity failures often come from ordinary workflow tools. Contractors should define approved systems for government information and avoid storing contract data in unmanaged personal email, consumer file-sharing tools, or unapproved AI/chat/collaboration systems.
This page is an index. The actionable items are the requirements below.
Standards and frameworks commonly adopted
Government Contracting & Professional Services
Federal contractors, consultants, and professional-services firms.
Adopts: FedRAMPAdopts: IRS 1075Adopts: NISTAdopts: FAR
Mapped requirements and controls
Data-Type / Sector-Specific Safeguards
Requirement
Protect Criminal History Records Information in accordance with 28 CFR Part 20; FBI CJIS Security Policy.
Plain-English explanation
Criminal Justice Information is governed by the FBI CJIS Security Policy and 28 CFR Part 20. Contractors that access CHRI must meet CJIS personnel-screening, training, and technical controls, including a management control agreement. CJIS controls are detailed and audited by the state CJIS Systems Agency.
Implementation examples
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Meeting CJIS requirements:
- Complete fingerprint-based background checks and CJIS Security Awareness training for staff with access.
- Apply the CJIS Security Policy technical controls (MFA, encryption, audit).
- Execute the required management control/security addendum agreements.
- Prepare for CSA audits with current documentation.
Required by
Requirement
Decontrol CUI When Safeguarding Is No Longer Required in accordance with 32 CFR 2002.18.
Plain-English explanation
CUI status is not permanent. 32 CFR 2002.18 lets the designating agency decontrol information when safeguarding is no longer required, and contractors should not keep treating decontrolled data as CUI. Decontrol is an agency decision — contractors follow it rather than make it.
Implementation examples
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Handling decontrol:
- Follow agency decontrol instructions and remove or update CUI markings accordingly.
- Note the decontrol decision and date in your records.
- Do not unilaterally decontrol CUI you received; confirm with the designating agency.
- Update access controls once data is decontrolled.
Required by
Requirement
Destroy CUI Using Approved Methods in accordance with 32 CFR 2002.14(f); NIST SP 800-88.
Plain-English explanation
CUI must be destroyed using methods that make it unreadable and irrecoverable. 32 CFR 2002.14(f) requires approved destruction, and NIST SP 800-88 provides the media-sanitization guidance the government relies on. Improper disposal is a common and avoidable cause of CUI loss.
Implementation examples
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Approved destruction practices:
- Cross-cut shred or pulp paper CUI to NSA/agency-approved standards.
- Sanitize digital media per NIST SP 800-88 (clear, purge, or destroy as appropriate).
- Use destruction logs or certificates of destruction for accountability.
- Include cloud and backup copies in your destruction process.
Required by
32 CFR 2002.16; CUI LDC Registry
Apply Limited Dissemination Controls and Lawful Government Purpose
DISSEM
Requirement
Apply Limited Dissemination Controls and Lawful Government Purpose in accordance with 32 CFR 2002.16; CUI LDC Registry.
Plain-English explanation
CUI may only be shared for a lawful government purpose, and Limited Dissemination Controls (LDCs) further restrict who may receive it. 32 CFR 2002.16 and the CUI Registry's LDC list govern which controls (e.g., NOFORN, FED ONLY) can be applied and how. Applying the wrong control — or ignoring one — is a disclosure risk.
Implementation examples
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Managing dissemination:
- Confirm a lawful government purpose before sharing CUI internally or externally.
- Apply only LDCs listed in the CUI Registry and only when authorized by the designating agency.
- Restrict distribution lists and shared drives to authorized recipients.
- Document dissemination decisions for CUI Specified categories.
Required by
DFARS 252.204-7012(m); proposed FAR CUI rule
Flow Down CUI Safeguarding Requirements to Subcontractors
FLOWDOWN
Requirement
Flow Down CUI Safeguarding Requirements to Subcontractors in accordance with DFARS 252.204-7012(m); proposed FAR CUI rule.
Plain-English explanation
CUI obligations do not stop at the prime — they flow down to subcontractors that will handle CUI. DFARS 252.204-7012(m) requires the clause be included in covered subcontracts, and the proposed FAR CUI rule would extend flowdown government-wide. Primes remain responsible for ensuring subs are covered.
Implementation examples
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Managing flowdown:
- Include the applicable CUI/safeguarding clause in subcontracts that involve CUI.
- Verify subcontractors' safeguarding posture (e.g., SPRS score, SSP) before sharing CUI.
- Track which subs receive CUI and under which categories.
- Require subs to report incidents up the chain.
Required by
EO 13556; 32 CFR Part 2002; NARA CUI Registry
Identify and Categorize CUI Using the CUI Registry
IDENTIFY
Requirement
Identify and Categorize CUI Using the CUI Registry in accordance with EO 13556; 32 CFR Part 2002; NARA CUI Registry.
Plain-English explanation
Before you can protect CUI you have to recognize it. The CUI program replaced dozens of agency-specific markings with one government-wide system, and the NARA CUI Registry is the authoritative list of what qualifies and under which category. Contractors should map where covered information lives and tag it to a Registry category.
Implementation examples
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Practical steps to identify and categorize CUI:
- Inventory systems, shares, and email that may hold government information and trace each to a contract or data flow.
- Match each information type to a NARA CUI Registry category (e.g., Controlled Technical Information, Privacy, Procurement).
- Confirm categorization with the contracting officer or data owner when a marking is ambiguous.
- Re-run the inventory when new contracts, tools, or data sources are added.
Required by
32 CFR 2002.20; CUI Marking Handbook
Apply CUI Markings (Banner, Portion, Category, and Limited Dissemination)
MARK
Requirement
Apply CUI Markings (Banner, Portion, Category, and Limited Dissemination) in accordance with 32 CFR 2002.20; CUI Marking Handbook.
Plain-English explanation
CUI must carry consistent markings so everyone who handles it knows the limits. The ISOO CUI Marking Handbook prescribes banner marks, portion marks, category designators, and limited-dissemination controls. Correct marking is what makes downstream safeguarding and dissemination rules enforceable.
Implementation examples
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Ways to apply CUI markings correctly:
- Add a CUI banner at the top (and bottom) of documents and a designation indicator identifying the source.
- Use category markings (e.g., CUI//SP-CTI) for CUI Specified.
- Apply portion marks where required and add Limited Dissemination Control markings (e.g., NOFORN, FED ONLY) when authorized.
- Configure templates, email footers, and DLP labels so markings are applied by default.
Required by
NIST SP 800-171 Rev 3; 32 CFR 2002.14(g)
Protect CUI on Nonfederal Systems per NIST SP 800-171
NIST171
Requirement
Protect CUI on Nonfederal Systems per NIST SP 800-171 in accordance with NIST SP 800-171 Rev 3; 32 CFR 2002.14(g).
Plain-English explanation
For CUI on nonfederal information systems, NIST SP 800-171 is the control set the government expects. Revision 3 (2024) reorganized the families and tightened several controls; DFARS 252.204-7012 and 32 CFR 2002.14(g) make it contractually and regulatorily binding for many contractors. A System Security Plan and POA&M are the core evidence artifacts.
Implementation examples
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Implementing NIST SP 800-171:
- Maintain a current System Security Plan (SSP) describing how each control is met.
- Track gaps in a Plan of Action & Milestones (POA&M) with owners and dates.
- Implement the access-control, MFA, logging, configuration, and incident-response families.
- Confirm which revision (Rev 2 vs Rev 3) your contract requires before scoping work.
Required by
Requirement
Protect Proprietary Business Information / Trade Secrets in accordance with 18 USC 1905; FOIA Exemption 4.
Plain-English explanation
Proprietary business information and trade secrets shared with or generated for the government are protected from improper disclosure. 18 USC 1905 (Trade Secrets Act) and FOIA Exemption 4 limit government release of confidential commercial information. Contractors should mark and segregate proprietary data.
Implementation examples
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Protecting proprietary information:
- Mark proprietary/trade-secret data with appropriate restrictive legends.
- Segregate it and limit access to a need-to-know basis.
- Assert confidentiality when submitting data the government might disclose.
- Track where proprietary data is shared and stored.
Required by
Requirement
Protect Privacy CUI and Sensitive PII in accordance with Privacy Act (5 USC 552a).
Plain-English explanation
Privacy CUI and sensitive PII require protection under the Privacy Act and related guidance. 5 USC 552a governs federal records about individuals, and contractors operating systems of records inherit those duties. Sensitive PII (e.g., SSNs) warrants stronger controls.
Implementation examples
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Protecting privacy CUI / sensitive PII:
- Identify Privacy Act systems of records and apply the required safeguards.
- Encrypt and access-restrict sensitive PII; minimize collection.
- Follow breach-notification and reporting requirements.
- Honor Privacy Act use limitations and routine-use constraints.
Required by
Requirement
Safeguard CUI at the 32 CFR 2002 Baseline in accordance with 32 CFR 2002.14.
Plain-English explanation
This is the baseline duty to protect CUI at rest, in transit, and in use. 32 CFR 2002.14 sets the floor for all CUI; for CUI on nonfederal systems that floor is implemented through NIST SP 800-171. Treat it as the minimum standard every CUI handler owes regardless of category.
Implementation examples
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Baseline safeguarding measures:
- Limit access to CUI to people with a lawful government purpose and a need to know.
- Encrypt CUI in transit and at rest using FIPS-validated cryptography.
- Control physical access to printed CUI and CUI media.
- Log access and review it; train staff on handling rules.
Required by
Requirement
Apply Category-Specific (CUI Specified) Handling Controls in accordance with 32 CFR Part 2002 (CUI Specified).
Plain-English explanation
Some CUI categories are 'CUI Specified' — a law, regulation, or government-wide policy imposes handling controls beyond the CUI Basic baseline. 32 CFR Part 2002 directs you to the controlling authority for each Specified category. Always check whether a category is Basic or Specified before deciding how to handle it.
Implementation examples
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Handling CUI Specified:
- Identify the category's controlling law/regulation in the CUI Registry.
- Apply the category-specific dissemination and safeguarding rules, which may exceed the baseline.
- Mark Specified CUI with the correct category designator.
- Escalate questions to the contracting officer or the designating agency.
Required by
Requirement
Protect Source Selection and Procurement-Sensitive Information in accordance with 41 USC 2102; FAR 3.104.
Plain-English explanation
Source-selection and procurement-sensitive information must be protected to keep competitions fair. 41 USC 2102 and FAR 3.104 prohibit disclosing contractor bid or proposal information and source-selection information before award. Mishandling it can taint a procurement and trigger penalties.
Implementation examples
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Protecting source-selection information:
- Mark proposals and evaluation materials as Source Selection Information per FAR 3.104.
- Limit access to the evaluation team with a need to know.
- Avoid storing source-selection data on uncontrolled systems.
- Train evaluators on procurement-integrity rules.
Required by
Requirement
Protect Federal Taxpayer Information in accordance with 26 USC 6103; IRS Pub 1075.
Plain-English explanation
Federal Tax Information received from the IRS is among the most tightly controlled CUI categories. 26 USC 6103 restricts disclosure and IRS Publication 1075 prescribes the safeguards, including specific access, logging, and reporting controls. FTI handling is audited by the IRS.
Implementation examples
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Safeguarding FTI:
- Apply IRS Pub 1075 controls (access restriction, logging, encryption, background checks).
- Keep FTI within an authorized, documented system boundary.
- Maintain the required incident-reporting path to the IRS.
- Support periodic IRS Safeguard reviews with current SSR/documentation.
Required by
Requirement
Provide CUI Awareness Training to the Workforce in accordance with 32 CFR 2002.30.
Plain-English explanation
People are the front line of CUI protection, so the program expects workforce awareness training. 32 CFR 2002.30 contemplates training on identifying, marking, handling, and reporting CUI. Document that staff who touch CUI have completed it.
Implementation examples
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Building a CUI training program:
- Deliver role-based training before staff are granted CUI access and at least annually.
- Cover identification, marking, dissemination limits, incident reporting, and destruction.
- Track completion and retain records as evidence.
- Refresh content when CUI policies or contract requirements change.
Required by
Cloud Authorization & Continuous Monitoring
FedRAMP; DFARS 252.204-7012(b)(2)
Use FedRAMP-Authorized Cloud for CUI (DoD: FedRAMP-Moderate Equivalent)
FEDRAMP
Requirement
Use FedRAMP-Authorized Cloud for CUI (DoD: FedRAMP-Moderate Equivalent) in accordance with FedRAMP; DFARS 252.204-7012(b)(2).
Plain-English explanation
If you store or process CUI in the cloud, the service generally must be FedRAMP-authorized; for DoD CUI, DFARS 252.204-7012(b)(2) requires at least FedRAMP-Moderate-equivalent security plus the clause's additional terms. Choosing a non-compliant cloud is a frequent gap that can derail an assessment.
Implementation examples
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Cloud authorization steps:
- Confirm the cloud service's FedRAMP authorization level (or Moderate-equivalent for DoD).
- Ensure the provider meets DFARS 7012(b)(2)(ii) requirements and supports incident reporting/media preservation.
- Document the authorization evidence in your SSP.
- Keep CUI within the authorized boundary and configured services.
Required by
External Notification & Reporting
Requirement
Report Loss or Compromise of CUI in accordance with 32 CFR 2002; agency incident-reporting policy.
Plain-English explanation
Loss or compromise of CUI must be reported, often on tight timelines. 32 CFR Part 2002 and agency/contract incident-reporting policy (and DFARS 7012's 72-hour rule for DoD) govern when and to whom. Build the reporting path before an incident, not during one.
Implementation examples
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Incident-reporting readiness:
- Maintain an incident-response plan with defined roles and reporting timelines.
- Know the reporting channel (e.g., DIBNet for DoD) and required contract notifications.
- Preserve images and affected media for the period the contract requires.
- Run tabletop exercises so the team can meet the deadline.
Required by
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