Executive Brief
Managing industrial security in-house can appear cost effective, but the reality often tells a different story. The time, expertise, and compliance required to sustain a fully compliant Industrial Security Program (ISP) can stretch Facility Security Officers (FSOs) beyond capacity.
This blog explores:
- What a National Industrial Security Program Operating Manual (NISPOM)-compliant ISP truly entails
- The measurable costs and delays tied to do-it-yourself (DIY) security
- How a Managed Security Service Provider (MSSP) or external partner offsets those costs
- Where the return on investment (ROI) becomes clear
Dig deeper below to see why DIY industrial security often costs more than partnering with experts who keep your compliance and contracts on track.
The Full Scope of Industrial Security
A well-rounded, NISPOM-compliant ISP goes far beyond physical access control. It includes:
- Personnel security: Managing employee clearances, reinvestigations, and incident reporting.
- Information security: Protecting classified and Controlled Unclassified Information (CUI).
- Physical security: Securing buildings, storage containers, and systems.
- Insider threat monitoring: Identifying and mitigating internal risks.
- Training and recordkeeping: Meeting mandatory education and audit documentation requirements.
For many small and mid-size defense contractors, one FSO is expected to manage all of these areas. In practice, maintaining a NISPOM-compliant ISP single-handedly is rarely sustainable.
Partnering with an organization like ISI helps FSOs stay compliant and ensures their ISP directly supports contract eligibility. Gaps in clearance management, training, or reporting can jeopardize a contractor’s Facility Clearance (FCL) and lead to delayed or lost opportunities.
Facility Clearance: The Cost of Waiting
Time is one of the most expensive hidden costs in industrial security. The average timeline to obtain an FCL is roughly 180 days across the industry. ISI helps qualified contractors significantly reduce clearance processing times through coordinated preparation and proactive communication with the Defense Counterintelligence and Security Agency (DCSA).
Every month spent waiting for an FCL delays new contract revenue. For example:
- A $1 million subcontract delayed six months translates to roughly $500,000 in deferred revenue
- Lost bidding opportunities can push timelines out another quarter
Partnering with experts who understand DCSA’s clearance process accelerates onboarding, revenue flow, and competitiveness.
Personnel Clearances and Continuous Readiness
FSOs who rely solely on spreadsheets or manual tracking for Personnel Clearances (PCLs) face constant risk of lapses or missed reinvestigation deadlines. If a key cleared employee’s eligibility lapses mid-project, critical work halts until access is restored.
External partners or clearance management software automate reminders, streamline documentation, and ensure continuity. The result is fewer work stoppages and stronger operational resilience. For organizations where every cleared position contributes to direct labor billing, the cost of a single lapse can reach tens of thousands of dollars.
DCSA Security Reviews: Common Pain Points
DCSA reviews remain a top stress point for FSOs managing programs internally. Common issues include:
- Disorganized or incomplete documentation of annual self-inspections
- Outdated Insider Threat or Information Security plans
- Missed annual training requirements
- Poor version control of policies and procedures
External compliance support eliminates guesswork. Experienced consultants can conduct pre-inspections, correct gaps early, and coach FSOs through the process. The benefit is confidence and consistency, avoiding corrective actions that delay new contracts or trigger further scrutiny.
The Operational ROI of Shared Responsibility
When FSOs try to handle every task alone, their workload quickly becomes unsustainable. According to ISI’s ROI analysis, FSOs managing an entire ISP manually spend a significant portion of their workweek on administrative tasks such as clearance tracking, audit preparation, and compliance documentation.
By partnering with a Managed Security Service Provider (MSSP), contractors can substantially reduce that administrative burden. The return comes in:
- Recovered staff hours redirected to contract delivery and growth
- Faster DCSA review readiness and improved performance ratings
- Lower risk of compliance findings or contract delays
A freed-up FSO becomes a stronger strategic asset, focusing on proactive risk management and business enablement instead of paperwork.
How Partnership Strengthens Compliance and Contracts
A mature ISP supported by external experts translates to measurable business advantages:
- Faster time to contract award due to readiness and FCL speed
- Higher confidence from primes during teaming evaluations
- Reduced risk of audit findings during DCSA reviews
- Improved employee retention due to smoother clearance and onboarding processes
For many contractors, the ROI is not just cost savings—it’s opportunity acceleration. ISI clients often report stronger posture scores, shorter review cycles, and improved contract competitiveness.
DIY industrial security can appear budget-friendly, but the hidden costs tell another story. Extended FCL timelines, clearance lapses, and DCSA findings drain time and revenue.
Partnering with experts like ISI accelerates compliance, reduces risk, and strengthens your organization’s competitive position. In industrial security, the real cost of going it alone is opportunity lost.
FAQs
What is an ISP?
An ISP is the comprehensive framework a cleared contractor uses to protect classified information, facilities, and personnel under the National Industrial Security Program.
Why does industrial security impact contract eligibility?
An expired clearance or unresolved DCSA finding can pause or terminate contracts. Contractors must maintain active FCLs, compliant documentation, and trained personnel to remain eligible.
How does an MSSP or compliance partner help FSOs?
By handling clearance tracking, documentation, training coordination, and audit prep, an MSSP reduces workload and ensures continuous readiness.
What’s the real ROI of using external support?
Reduced delays, faster clearances, improved audit outcomes, and fewer interruptions in cleared work all contribute to measurable time and cost savings.
