Security Clearance Requirements for Government Contractors: Complete Guide 2025
Learn about security clearance requirements for federal contracts, clearance levels, the investigation process, and how to obtain facility clearance for your business.
Quick Answer: Do I Need a Security Clearance?
You need a security clearance if your contract requires access to classified information. Both your company (Facility Clearance) and employees (Personnel Clearance) must be cleared. The government sponsors and pays for clearances—you cannot obtain one independently.
Security Clearance Overview
Security clearances are formal determinations that an individual or company may access classified national security information. The Defense Counterintelligence and Security Agency (DCSA) manages the vast majority of security clearances for the federal government.
Classified contracts represent a significant portion of federal spending, particularly in defense, intelligence, and national security. Having cleared personnel and facilities opens access to contracts that many competitors cannot pursue.
Two Types of Clearances Required
Facility Clearance (FCL)
Company-level clearance allowing your business to receive, store, and work with classified information at your facility.
Personnel Clearance (PCL)
Individual-level clearance for employees who will access classified information. Level must match or exceed contract requirements.
Important: Sponsorship Required
You cannot apply for a security clearance on your own. You must have a legitimate government need (usually a classified contract) and a sponsoring agency. The government pays for clearance investigations—never pay a company claiming to provide clearances.
Clearance Levels Explained
Confidential
Lowest level of classified information
Access to information that could cause damage to national security if disclosed. Requires reinvestigation every 15 years.
Secret
Most common clearance level
Access to information that could cause serious damage to national security if disclosed. Requires reinvestigation every 10 years.
Top Secret
Highest standard clearance level
Access to information that could cause exceptionally grave damage to national security if disclosed. Requires reinvestigation every 5 years.
TS/SCI
Sensitive Compartmented Information
Top Secret with additional access to intelligence sources and methods. Requires additional vetting beyond standard Top Secret investigation.
Facility Clearance (FCL)
Before your employees can receive clearances, your company must obtain a Facility Clearance. This certifies that your business can protect classified information.
FCL Requirements
- ✓Sponsoring Agency
A government agency must sponsor your FCL based on a legitimate need
- ✓Key Management Personnel (KMP)
Officers and key executives must be cleared to the FCL level
- ✓Facility Security Officer (FSO)
Designated employee responsible for security program management
- ✓Secure Facility (if required)
Physical space meeting security requirements for storing classified info
- ✓Foreign Ownership/Control (FOCI)
Must demonstrate no foreign ownership, control, or influence issues
FCL Levels
Personnel Security Clearance
Eligibility Factors
The government evaluates 13 adjudicative guidelines when determining clearance eligibility:
Common Disqualifying Factors
- • Significant financial problems (collections, bankruptcies, tax liens)
- • Recent drug use (within 12-24 months depending on substance)
- • Criminal history (especially recent or patterns of behavior)
- • Foreign national immediate family members in certain countries
- • Falsification or omission on the SF-86 application
Investigation Process
SF-86 Submission
Complete the Standard Form 86 (Questionnaire for National Security Positions) through the e-QIP system. This detailed form covers your entire background.
Background Investigation
DCSA conducts checks on criminal records, credit history, employment, education, and references. Higher levels include more extensive investigation.
Subject Interview (if required)
An investigator may conduct an in-person interview to clarify information or address potential issues identified in your application.
Adjudication
An adjudicator reviews the investigation results and makes a determination on eligibility based on the 13 guidelines and whole-person concept.
Clearance Granted or Denied
If granted, you receive your clearance and can access classified information. If denied, you may appeal the decision through a formal process.
Maintaining Your Clearance
Ongoing Obligations
- • Report foreign travel and contacts
- • Report changes in financial status
- • Report arrests or legal issues
- • Complete annual security training
- • Report suspicious contacts
Continuous Evaluation
- • Automated record checks ongoing
- • Social media monitoring possible
- • Financial monitoring through CE
- • Random interviews may occur
- • Periodic reinvestigation required
Costs and Timeline
Processing Times (Approximate)
Cost Note
The government pays for clearance investigations. Your only costs are indirect: time for employees to complete paperwork, potential facility security upgrades, and FSO training. Never pay a third party claiming to provide clearances.
Frequently Asked Questions
Can I get a clearance before winning a classified contract?
Generally no. You need a sponsoring agency with a legitimate need, which typically comes from a contract requirement. Some agencies may sponsor pre-award for certain positions, but this is rare.
Will my clearance transfer if I change jobs?
Yes, clearances are held in a central database and can transfer to a new cleared employer within 24 months without lapsing. The new employer must have an FCL and a need to access your clearance.
What if I have past drug use?
Past drug use does not automatically disqualify you. Factors include how recent, how frequent, circumstances, and whether you have demonstrated changed behavior. Honesty on the SF-86 is critical—falsification is worse than the underlying issue.
Can non-US citizens get clearances?
Security clearances require US citizenship. However, some positions with access to less sensitive information may use Limited Access Authorizations (LAA) for non-citizens, subject to strict requirements.
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