EXECUTIVE BRIEF
Standardizing safeguards to protect CUI is the basis for federal regulations like NIST 800-171 and the Cybersecurity Maturity Model Certification (CMMC).
Here's what you need to know about CUI:
- Unclassified data that requires specific dissemination and safeguarding controls
- Two types of CUI: CUI Basic and CUI Specified
- Your safeguarding strategies should include physical, digital, and incident response plans
Dig deeper and continue reading below.
Controlled Unclassified Information (CUI) is data created or possessed by the government (or by entities working on behalf of the government) that isn’t classified, but that still requires protection according to applicable laws, regulations, or government-wide policies.
CUI can include a wide range of information types, such as:
- Controlled technical information (CTI) used in military or federal operations
- Critical infrastructure information (CII) vital to national security or public safety
- Trade secrets and intellectual property (IP)
- Protected health information (PHI) under HIPAA
- Export control information (ECI) restricted under the International Traffic in Arms Regulations (ITAR) or Export Administration Regulations (EAR)
- Personally Identifiable Information (PII), such as Social Security numbers, addresses, and contact information
The roots of CUI as a concept began with discussions and recommendations from the 2004 9/11 Commission Report. The report highlighted significant issues in how sensitive but unclassified information was managed and shared across federal agencies before and after the 9/11 attacks.
In response to these findings, the federal government began exploring ways to standardize the handling of sensitive unclassified information. This led to Executive Order 13556 in 2010, which created the CUI framework in order to improve consistency, security, and information-sharing across federal agencies and contractors.
CUI vs. Classified Information
CUI and classified information differ in their level of sensitivity, how they must be handled, and the regulatory frameworks that apply to them.
CUI requires safeguarding, but it doesn’t qualify as classified. While it’s sensitive, its exposure would not directly harm national security. CUI must be marked appropriately and stored in controlled environments as outlined by programs like NIST SP 800-171, but it doesn’t require the same strict protocols as classified information.
In contrast, classified information pertains to national security and is divided into levels such as Confidential, Secret, or Top Secret, depending on the potential damage unauthorized disclosure could cause. This type of information is strictly marked, and its storage and access are heavily controlled, often requiring secure facilities and personnel with appropriate security clearances. Classified information is governed by regulations like the National Industrial Security Program Operating Manual (NISPOM).
CUI vs. Federal Contract Information (FCI)
Since Federal Contract Information (FCI) is provided by or generated for the government under a contract that isn’t intended for public release, it requires basic safeguarding, such as limiting access to authorized personnel and protecting systems against unauthorized access. However, it’s less sensitive than CUI, which includes specific categories of information designated by federal laws, regulations, or policies as needing protection. FCI is safeguarded by CMMC Level 1, which involves 17 basic cybersecurity practices derived from FAR 52.204-21.
Types of CUI
CUI is divided into two main categories:
CUI Basic: This type of CUI requires baseline protection, but doesn’t involve enhanced safeguarding measures. For example, routine procurement information or general export-controlled data often falls here.
CUI Specified: This type of CUI requires additional controls, such as stricter encryption methods, tighter storage regulations, more granular access restrictions, or more stringent reporting timelines for breaches and mishandling. Examples of CUI Specified include law enforcement sensitive data or data related to nuclear materials.
How to Identify and Categorize CUI
Defense contractors and other organizations working with federal agencies often receive explicit guidelines in contracts, security clauses, or agreements about what constitutes CUI. However, to make a more general determination about CUI and its classification within your organization, you can consult the National Archives and Records Administration (NARA), which oversees the CUI Program and maintains the official CUI Registry. This registry categorizes the subsets of information considered CUI and lists all approved categories and subcategories, along with the applicable authorities for safeguarding and dissemination controls.
Review the content of the data you’re working with to determine if it aligns with one of NARA’s CUI categories. (Information that could affect government operations, privacy, or business confidentiality often qualifies.) Consult NARA’s registry to ensure you understand your responsibilities and adhere to the proper practices.
Why Protecting CUI Matters
For defense contractors, proper CUI management is more than a CMMC compliance checkbox—it’s a contractual obligation. Mishandling CUI can lead to significant consequences, including contract terminations, loss of future opportunities, and even penalties under regulations like the False Claims Act. Beyond the financial costs, a breach of CUI can tarnish an organization’s reputation, eroding trust with both government agencies and industry partners.
In terms of national security, robust CUI safeguarding practices are essential to maintaining a strong and secure industrial base. While CUI may not carry the same classification as Secret or Top Secret information, mishandling it can have profound implications for both the federal government and the contractors entrusted with its care. CUI includes information that, if exposed, could compromise military readiness, economic stability, or individual privacy. Leaked CUI could give adversaries the tools to replicate defense technologies, disrupt supply chains, or interfere with critical operations. Protecting this information ensures adversaries cannot exploit vulnerabilities to undermine the U.S. Department of Defense (DoD) or its partners.
Compliance Requirements for CUI
Organizations handling CUI must comply with stringent requirements governed by a complex combination of federal laws, regulations, and frameworks. Here are the key compliance elements for CUI.
NIST SP 800-171: The Foundation of CUI Safeguarding
The National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171 outlines the security controls required to protect CUI in non-federal systems. It provides 110 security practices divided across 14 control families (see a full list of them here). This framework is essential for contractors working with the DoD and other federal agencies, serving as the baseline for safeguarding CUI in their networks.
DFARS: Contractual Compliance for DoD Contractors
The Defense Federal Acquisition Regulation Supplement (DFARS) builds on NIST SP 800-171 by making it a contractual requirement for defense contractors. Specifically, DFARS Clause 252.204-7012 mandates that contractors implement NIST SP 800-171 controls to secure CUI and report any cyber incidents affecting this data. Non-compliance can lead to penalties, loss of contracts, or restricted access to future opportunities.
CMMC: Verifying Compliance Readiness
Cybersecurity Maturity Model Certification (CMMC) introduced a tiered approach to verifying compliance. It ensures contractors not only implement the required security practices, but also demonstrate their effectiveness. With CMMC 2.0, organizations must meet one of three levels of certification based on the sensitivity of the information they handle. CMMC certification is essential for maintaining eligibility for DoD contracts involving CUI.
CFR Regulations and Legal Frameworks
CUI compliance is further governed by laws codified in the Code of Federal Regulations (CFR), such as 32 CFR Part 2002, which establishes uniform guidelines for handling and safeguarding CUI. These regulations ensure consistency across federal agencies and their contractors, standardizing the protection of sensitive information.
Best Practices for Protecting CUI
To protect CUI, defense contractors must adhere to federal requirements, leverage certain tools, and deploy particular organizational strategies within their business. Below, we outline best practices to ensure CUI remains secure and compliant.
Strategies for Safeguarding CUI
Protecting CUI begins with implementing robust physical and digital safeguards:
Physical Protections: CUI should be stored in secure locations, such as locked cabinets or controlled-access rooms, accessible only to authorized personnel. Regular audits of physical storage areas help ensure compliance with security protocols.
Digital Safeguards: Employ encryption for sensitive files both in transit and at rest, ensuring they remain unreadable even if intercepted. Use secure file-sharing platforms to transfer data and apply strong multi-factor authentication (MFA) and role-based access controls to restrict access to those who genuinely need it.
Incident Response: Develop and maintain a clear plan for addressing and mitigating data breaches involving CUI. This includes monitoring systems for suspicious activity and responding swiftly to minimize risks.
Federal Requirements and Solutions
Consult with NARA’s CUI Registry to determine if you’re handling CUI and whether it falls under the “Basic CUI” or “Specified CUI” categorizations.
Contractors are required by federal law to ensure only authorized recipients receive CUI under their care, using secure communication channels to mitigate risks. Dissemination policies often emphasize the “need-to-know” principle, limiting access to essential personnel only.
Adherence to standards like NIST SP 800-171 ensures that CUI is handled appropriately within non-federal information systems, while frameworks like DFARS and CMMC provide additional compliance layers.
Tools and Technologies
The right technologies can simplify the complex task of managing and protecting CUI. For instance, Identity and Access Management (IAM) solutions streamline the enforcement of role-based access controls, ensuring CUI is only accessible by authorized personnel. Once you’ve established who can access CUI within your organization, platforms with built-in encryption and controlled access features (called Secure Sharing Platforms) enable contractors to safely share CUI with authorized parties while maintaining compliance.
While this is going on, tools like Security Information and Event Management (SIEM) platforms provide real-time monitoring of network activity, alerting organizations to potential threats. Meanwhile, decontrolling software is designed to manage the declassification of CUI, ensuring organizations comply with proper protocols when information no longer requires safeguarding.
The Impact of Mishandling CUI
Mishandling CUI is a risk that no DoD contractor can afford to take. Beyond compromising sensitive information, failures in CUI compliance can result in:
- Loss of contract renewals
- Debarment from bidding on future contracts
- Reputational and financial damage
- Penalties and fines
Failure to properly protect CUI often violates contractual obligations, such as those outlined in DFARS, and a history of non-compliance can disqualify organizations from contract renewals and damage their ability to win new bids. As the CMMC becomes a requirement for contracts involving CUI, even minor lapses in safeguarding information could result in a loss of eligibility to work with the DoD.
Steps to Ensure CUI Security
Here’s a step-by-step guide to ensure your organization’s CUI security.
1. Conduct a CUI Risk Assessment in Your Organization
Start by evaluating how CUI flows through your organization. Identify where this sensitive information is stored, processed, and transmitted. Assess potential vulnerabilities in both physical and digital environments, such as unsecured storage locations or outdated cybersecurity protocols. A thorough risk assessment provides the foundation for implementing effective safeguards and meeting compliance requirements like those outlined in NIST SP 800-171.
2. Implement Training Programs and Protocols for Handling CUI
Proper training is essential to ensure all employees understand their role in safeguarding CUI. Develop training programs that cover:
- Identifying and marking CUI
- Secure storage and file-sharing practices
- Incident reporting procedures
Regularly updating these programs ensures that your team stays informed about evolving regulations and best practices, reducing the risk of accidental mishandling.
3. Develop a System Security Plan (SSP) and Plan of Action and Milestones (POA&M)
Creating a System Security Plan (SSP) is a requirement under NIST SP 800-171 and CMMC. An SSP outlines your organization’s approach to securing CUI, including implemented controls, your CUI policy, and CUI training.
For any gaps identified during the risk assessment, a Plan of Action and Milestones (POA&M) documents how and when those deficiencies will be addressed. Together, these plans serve as a roadmap to achieve and maintain compliance, demonstrating your commitment to safeguarding CUI.
4. Partner with Compliance and Security Experts
Navigating the complexities of CUI management can be overwhelming, especially for organizations without dedicated CMMC compliance teams. Partnering with experienced advisors like ISI ensures you have access to industry-leading expertise and support tailored to your needs.
ISI specializes in helping defense contractors align with standards like NIST SP 800-171, DFARS, and CMMC. Our team provides:
- Customized Guidance: We assess your specific challenges and design solutions to protect CUI effectively.
- Expert Oversight: Our advisors help you develop and implement SSPs and POA&Ms, ensuring your organization remains audit-ready.
- Proactive Support: With ISI, you gain a partner who stays ahead of regulatory changes, so you’re always prepared to meet evolving requirements.
Partnering with compliance experts not only reduces the risk of non-compliance but also allows your organization to focus on its core mission. With ISI by your side, you can confidently protect CUI, secure government contracts, and maintain a competitive edge in the defense industry.
ISI’s Role in Safeguarding CUI
With over 15 years of experience, ISI has helped hundreds of defense contractors manage CUI in compliance with frameworks like CMMC and NIST SP 800-171. Our team of experts, including Certified CMMC Registered Practitioners, has guided organizations like yours through the complexities of securing sensitive data and passing audits with confidence. Contact us today to get started!
FAQ about CUI
What is the ISOO CUI Registry and its purpose?
The ISOO CUI Registry is an official resource maintained by the Information Security Oversight Office (ISOO) to provide detailed information about CUI categories and their safeguarding requirements. The registry serves as a central reference that can ensure consistency in identifying, marking, and safeguarding CUI across federal agencies and contractors, making it an essential tool for compliance and proper data management.
Can I decontrol CUI, and how is it done?
Yes, CUI can be decontrolled, but the process must be handled carefully and in compliance with applicable regulations. The process typically involves verifying that the information no longer meets the criteria for CUI, removing any CUI markings, and documenting the decontrol decision. Only authorized personnel or organizations under the direction of the original designating authority, may approve decontrol actions. Proper decontrol ensures compliance while preventing unnecessary restrictions on information sharing.
What is the difference between CUI Basic and CUI Specified?
The difference between CUI Basic and CUI Specified lies in the level of safeguarding and dissemination controls required. CUI Basic is governed by the general guidelines outlined in 32 CFR Part 2002 and applies when the applicable laws, regulations, or policies do not specify particular safeguarding requirements. In contrast, CUI Specified involves additional or unique safeguarding measures dictated by the specific authority that established the information as CUI. For example, export-controlled information under ITAR is considered CUI Specified due to its strict regulatory requirements.
Can I store CUI on personal devices or nonfederal systems?
Storing CUI on personal devices or nonfederal information systems is highly discouraged and generally prohibited unless specific requirements are met. The storage of CUI must comply with the security controls outlined in NIST SP 800-171, and personal devices or nonfederal systems are rarely equipped to meet these standards, increasing the risk of unauthorized access or data breaches. If storage on such devices is unavoidable, it must be explicitly authorized by the relevant federal agency and adhere to strict safeguarding protocols to ensure the security of the information.
Where can I find more resources on the CUI program?
You can find more resources on the CUI program through the National Archives and Records Administration (NARA), which oversees the program and maintains the official CUI Registry. The registry provides comprehensive details about CUI categories, applicable laws, and safeguarding requirements. Additionally, the ISOO offers guidance documents, training materials, and FAQs to help organizations understand and comply with CUI regulations.
