ISI Insights

Do You Need a Facility Security Officer? What FSOs Actually Do

Written by ISI | Nov 25, 2025 2:14:07 PM

Executive Brief 

If your company handles classified work or is pursuing a Facility Clearance (FCL), you need one key player — a Facility Security Officer (FSO). 

The FSO is more than a compliance checkbox. They are the point person protecting classified information, coordinating with the Defense Counterintelligence and Security Agency (DCSA), and ensuring your organization keeps its clearance eligibility. 

Dig deeper below to learn what the FSO really does and why you can’t operate in the classified space without one. 

1. The FSO’s Role

At its core, the FSO’s job is to protect national security information inside a company that works on classified contracts. 

They: 

  • Serve as the official liaison with DCSA. 
  • Manage personnel clearances through DISS or NBIS. 
  • Ensure classified systems and storage meet federal standards. 
  • Lead training, self-inspections, and incident reporting. 

Think of the FSO as part compliance officer, part security strategist, and part risk manager. 

2. When You’re Required to Have One

You must designate an FSO if your company: 

  • Holds or is applying for a Facility Clearance (FCL). 
  • Works on classified contracts or handles classified data. 
  • Employs anyone who needs a Personnel Security Clearance (PCL) to perform their job. 

The FSO must be a U.S. citizen, cleared to the same level as your facility, and formally recognized in your DCSA records. 

For small contractors, this may be a dual role — often HR, compliance, or operations leads wear the FSO hat. Larger firms typically have full-time FSOs or a security team. 

3. What FSOs Actually Do Day-to-Day

Personnel Security (PERSEC) 

  • Track clearance investigations and reinvestigations. 
  • Conduct employee briefings, debriefings, and awareness training. 
  • Manage continuous evaluation and insider threat reporting. 

Facility Security (PHYSEC) 

  • Oversee secure areas, alarms, and storage containers. 
  • Coordinate inspections and maintain access rosters. 
  • Respond to visit requests and classification incidents. 

Information Security (INFOSEC) 

  • Protect classified data — digital and physical. 
  • Ensure systems align with NISPOM and relevant DoD guidance. 
  • Support audit readiness and maintain documentation. 

Reporting and Coordination 

  • Notify DCSA of reportable events and changes in key management personnel. 

 
4. Why the FSO Role Matters More Now

The FSO’s job has evolved. It’s no longer just about locked safes and security badges. 

FSOs today are expected to: 

  • Work closely with IT and compliance on CMMC and DFARS 7012 requirements. 
  • Track CUI management and ensure unclassified environments still meet federal standards. 
  • Coordinate with HR to onboard and offboard cleared personnel securely. 
  • Adapt to emerging threats that threaten national security. 

The convergence of industrial security and cybersecurity means the FSO sits at the center of multiple compliance frameworks — not just classified operations. 

 5. Common Challenges FSOs Face

  • Balancing security and productivity in fast-paced project environments. 
  • Adapting to DCSA’s NBIS transition and digital reporting tools. 
  • Managing compliance when the role is part-time or shared. 

Many small contractors partner with outsourced FSO services or consultants to maintain compliance without overwhelming internal staff.  

If your business touches classified work, your FSO is your front line of defense — for both national security and your company’s eligibility to perform on contracts. 

They’re not just gatekeepers. They’re problem-solvers who connect people, policy, and protection. 

 

 

FAQs 

Can one person be both FSO and ITPSO?

Yes, especially in smaller organizations, as long as they have the proper clearance and training. 

Do subcontractors need FSOs?

Only if the subcontract involves classified information or requires an FCL. 

Can we outsource the FSO function?

Yes. Many SMBs use managed or shared FSO services to meet requirements efficiently and maintain readiness year-round. However, the company must still designate an official FSO of record who is a direct employee. 

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