[Code of Federal Regulations]
[Title 48, Volume 6]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR2452.239-70]

[Page 487-488]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
         CHAPTER 24--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
Sec. 2452.239-70  Background investigations for sensitive automated 

systems/applications.

    As prescribed in 2439.107(a), insert the following clause:

 Background Investigations for Sensitive Automated Systems/Applications 
                               (OCT 1999)

    (a) General. This contract involves work on, or access to, [insert 
name or other identifier], a HUD information resource that is either a 
major application system or any general support system. A major 
application system is a mission critical system, a system or information 
resource which has high investment cost, or any system which contains 
Privacy Act-covered data. A general support system is any computer 
facility or major component thereof, or any network or 
telecommunications resource. All contractor employees working on this 
contract in positions which HUD has determined to have sensitive access 
to the information resource(s) identified above are required to have a 
background investigation. The investigation shall be commensurate with 
the risk and security controls involved in managing, using or operating 
the resources identified above, consistent with 5 CFR part 731. HUD may 
bar contractor employees from working on this contract for failing to 
meet or maintain the applicable suitability standards administered by 
the Department's Personnel Security Branch.
    (b) Citizenship-related requirements. All contractor employees as 
described in paragraph (a) shall: (1) be United States (U.S.) citizens 
living in the U.S.; or (2) owe allegiance to the U.S.
    (c) Background investigation process. (1) The GTR shall notify the 
contractor of those contractor employee positions requiring background 
investigations. For each contractor employee in such a position, the 
contractor shall submit the following completed forms: Standard Form 
(SF) 85P, Questionnaire for Public Trust Positions; FD-258, Fingerprint 
Chart; Fair Credit Reporting Act authorization form; and other 
information as may be necessary. The contractor shall submit an original 
and one copy of the SF 85P.
    (2) The contractor shall deliver the forms and information required 
in paragraph (c)(1) to the GTR as soon as practicable once the 
contractor knows that the employee will be assigned to this contract, 
and no later than seven (7) calendar days after the employee begins work 
on this contract.
    (3) The investigation process shall consist of a range of personal 
background inquiries and contacts (written and personal) and 
verification of the information provided on the security forms described 
in paragraph (c)(1).
    (4) Upon completion of the investigation process, the GTR shall 
notify the contractor in writing of any contractor employees' 
ineligibility to work on this contract. The contractor shall immediately 
remove such employees from work on this contract.
    (5) The contractor shall notify the GTR in writing whenever a 
contractor employee for whom a background investigation package was 
required and submitted to HUD terminates employment or otherwise is no 
longer performing work under this contract. The contractor shall provide 
a copy of the written notice to the Contracting Officer.
    (d) Security breach notification. The contractor shall immediately 
notify the GTR and the Contracting Officer of any breach or suspected 
breach of security or any unauthorized disclosure of the information 
contained in the automated system specified in this contract.
    (e) Nondisclosure of information. (1) Neither the contractor nor any 
of its employees shall divulge or release data or information developed 
or obtained during performance of this contract, except to authorized 
Government personnel with an established need to know or upon written 
approval of the Contracting Officer. Information contained in all source 
documents and other media provided by HUD are the sole property of HUD.
    (2) The contractor shall require that any employees who may have 
access to the automated systems identified in paragraph (a) sign a 
pledge of nondisclosure of information. These pledges shall be signed by 
the employees before they are permitted to perform work under this 
contract. The contractor shall maintain the signed pledges for

[[Page 488]]

a period of three years after final payment under this contract.
    (f) Security procedures. The contractor shall establish personnel 
security procedures that meet, as a minimum, the requirements of HUD 
Handbook 2400.24. The contractor shall provide a copy of such procedures 
and any revisions made to them during the period of the contract to the 
GTR.
    (g) Contractor compliance. Failure on the part of the contractor to 
comply with the terms of this clause may result in termination of this 
contract for default.
    (h) Other clearance requirements. When any work performed by 
contractor personnel on-site in a HUD facility meets the criteria set 
forth in HUDAR 2437.110(e), the contractor shall also comply with the 
requirements of the clause at 48 CFR 2452.237-75, Clearance of 
Contractor Personnel.
    (i) Subcontracts. The contractor shall incorporate this clause in 
all subcontracts where the requirements specified in paragraph (a) of 
this section are applicable to performance of the subcontract.

                             (End of clause)

[64 FR 46100, Aug. 23, 1999]