So You Want to Sell Your Government Contracting Business: Classified Work Transfer

In order to work on US federal government contracts that require security clearances, government contracting businesses must meet a number of requirements and have certain capabilities. The process of obtaining a security clearance is extensive and rigorous, and businesses must be prepared to invest significant time and resources in order to successfully navigate it. Therefore, if your business is doing classified work, make sure the company that is interested in buying your business has gone through these processes.

• Facility clearance

One of the first requirements that government contracting businesses need to meet is obtaining a facility clearance. This means that the business’s facilities and physical infrastructure must be assessed to ensure that they meet the security standards set by the federal government. The facility clearance process involves a thorough review of the business’s physical security, information technology systems, and personnel security. Businesses must also implement security protocols and procedures to ensure that classified information is properly safeguarded.

• Personnel clearance

In addition to facility clearance, government contracting businesses must also ensure that their personnel have the appropriate level of security clearance. This means that employees who will be working on contracts that require security clearances must undergo a background investigation to determine their eligibility for access to classified information. This includes a review of an individual’s personal history, financial status, and criminal record.

• Cybersecurity capabilities

With the increasing reliance on technology in government operations, cybersecurity is an essential capability that government contracting businesses must have. Businesses must be able to demonstrate their ability to protect sensitive information from cyber threats, as well as their capacity to detect and respond to cybersecurity incidents.

• Risk management

Another important capability for government contracting businesses is risk management. This involves identifying and mitigating potential risks associated with working on government contracts, including risks related to security, performance, and compliance. Businesses must have robust risk management policies and procedures in place to ensure that they can effectively manage risks and respond to any issues that may arise.

• Compliance with regulations

Government contracting businesses must also be able to demonstrate their compliance with relevant regulations and standards. This includes complying with regulations related to security clearance, as well as regulations related to financial management, ethics, and contracting. Businesses must be able to provide evidence of their compliance, such as audit reports or certifications.

Working on US federal government contracts that require security clearances is a complex and challenging process that requires a number of capabilities and resources. If your business is doing classified work, when selling your government contracting business, make sure the buyer has gone through these processes.