SUPPORTING STATEMENT - PART A
Department of Defense Security Agreement
0705-0010
Summary of Changes from Previously Approved Collection
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1. Need for the Information Collection
Executive Order (EO) 12829, as amended, “National Industrial Security Program (NISP),” Section 202 (a) stipulates that the Secretary of Defense shall serve as the Executive Agent for inspecting and monitoring the contractors, licensees, and grantees who require or will require access to, or who store or will store classified information; and for determining the eligibility for access to classified information of contractors, licensees, and grantees and their respective employees. Section 202 (e) of EO 12829 also authorizes the Executive Agent to issue, after consultation with affected agencies, standard forms that will promote the implementation of the NISP. The specific requirements necessary to protect classified information released to private industry are set forth in 32 CFR Part 117, “National Industrial Security Program Operating Manual (NISPOM),” dated December 21, 2020. These forms are mandated in 5220.32, Volume 1, “National Industrial Security Program: Industrial Security Procedures for Government Activities, dated August 2018, and 5220.32, Volume 2, “National Industrial Security Program: Procedures for Government Activities Relating to Foreign Ownership, Control or Influence (FOCI).” The Federal Acquisition Regulation also levies the use of these forms on contractors and government agencies. These requirements are necessary to preserve and maintain the security of the United States through establishing standards to prevent the improper disclosure of classified information. Department of Defense Directive, 5105.42, “Subject: Defense Counterintelligence and Security Agency” (DCSA), delineates the mission, functions and responsibilities of DCSA. DCSA is a DoD Agency under the authority of the Under Secretary of Defense for Intelligence & Security (USD (I&S)). DCSA responsibilities include the administration and implementation of the Defense portion of the NISP as the DoD Cognizant Security Office, pursuant to EO 12829, Sec. 202.
2. Use of the Information
Contractors, licensees and grantees (collectively called contractors for the purpose of this document) awarded contracts involving access to classified information must have a Facility Clearance (FCL) under the NISP. Contractors are sponsored for an FCL by a government contracting activity (GCA) or another cleared contractor (prime or subcontractor) in accordance with the terms of their contract and 32 CFR 117. After approving the GCA or cleared contractor’s sponsorship request, the DCSA Facility Clearance Branch (FCB) registers the company in process for an FCL for a National Industrial Security System (NISS) account and provides a welcome package with FCL processing guidance. The DD Form 441, “Department of Defense Security Agreement,” a legally binding agreement between the sponsored contractor and the government, must be executed during the FCL process and prior to the issuance of the FCL. This legally binding document details the responsibilities of both parties and obligates the contractor to fulfill the requirements outlined in the NISPOM along with supporting contract clauses. The DD Form 441-1, “Appendage to Department of Defense Security Agreement,” is used to extend the DD Form 441 to the branch offices of the sponsored contractor. Contractors may access the forms on the DoD Forms website (https://www.esd.whs.mil/Directives/forms/) or DCSA’s website (https://www.dcsa.mil/About-Us/News/Article/Article/3286173/renewal-of-dd-441-441-1/). Completion of the forms is voluntary on the part of the contractor, however, an FCL cannot be issued if the forms are not completed. The signing of these forms does not guarantee the award of a contract, or issuance of an FCL or personnel security clearance, nor do they obligate the government to provide any type of compensation or fringe benefits. Contractors are not obligated to work for the government. Upon completion and submission to DCSA, DCSA and the contractor retain the DD Form 441 and 441-1 to oversee cleared contractor compliance with security regulations, as mandated by law. This agreement between the government and the contractor ensures adherence to security directives, in exchange for access to classified information, enabling DCSA to enforce compliance and safeguard classified information.
3. Use of Information Technology
DD Forms 441 and 441-1 are available electronically for distribution via the Defense Technical Information Center (DTIC). Additionally, the blank forms are currently maintained electronically by the DoD Washington Headquarters Services (WHS) and they have adopted Adobe Acrobat software as the format. DCSA has also adopted technology that allows for electronic submission of data and/or scanned images pertaining to these forms into the NISS. The contractor is provided information on system access requirements and how to register for an account. Documents are submitted electronically 100 percent of the time. If technology issues arise the contractor may receive or send the forms by hand carriage or mail, if necessary.
The forms, however, continue to require handwritten signatures prior to electronic submission to DCSA. DCSA is not in a position, to receive these forms electronically utilizing a digital signature, for the following reasons:
(i). These forms are legally binding documents and must be signed by company officials, witnesses and government representatives. At the time these forms are normally executed (i.e., the beginning of the facility clearance process), company officials and/or witnesses do not have a digital signature authority recognized by DCSA (i.e., digital signature authority under the DoD Public Key Infrastructure (PKI) Program). Under DoD Policy, the PKI program requires an individual to have at a minimum, a government National Agency Check (NAC) in place. Currently under the NISP, there is no requirement to have any kind of background/agency check, solely for the purpose of executing these forms.
(ii) There is no requirement to re-execute these forms unless there is a material change to the legal entity (e.g., change in ownership/name/structure /significant foreign control or influence).
4. Non-duplication
The information obtained through this collection is unique and is not already available for use or adaptation from another cleared source.
5. Burden on Small Businesses
This information collection does not impose a significant economic impact on a substantial number of small businesses or entities.
6. Less Frequent Collection
DD Form 441 data is collected "on occasion" – initial FCL processing, organizational changes, DCSA request – as these events necessitate immediate re-evaluation of NISP eligibility and security posture. This represents the minimum collection frequency necessary to ensure continuous protection of classified information. Less frequent collection would unacceptably delay vulnerability detection, increase compromise risk, and impair DCSA's NISP enforcement capabilities.
7. Paperwork Reduction Act and Other Guidelines
This collection of information does not require collection to be conducted in a manner inconsistent with the guidelines delineated in 5 CFR 1320.5(d)(2) or other policy.
8. Consultation and Public Comments
Part A: PUBLIC NOTICE
A 60-Day Federal Register Notice (FRN) for the collection published on Thursday, July 3, 2025. The 60-Day FRN citation is 90 FR 29536.
No comments were received during the 60-Day Comment Period.
A 30-Day Federal Register Notice for the collection published on Wednesday, September 10, 2025. The 30-Day FRN citation is 90 FR 43588.
Part B: CONSULTATION
No additional consultation apart from soliciting public comments through the Federal Register was conducted for this submission.
9. Gifts or Payment
No payments or gifts are being offered to respondents as an incentive to participate in the collection.
10. Confidentiality
A Privacy Act Statement is not required for this collection because we are not requesting individuals to furnish personal information for a system of records.
A System of Record Notice (SORN) is not required for this collection because records are not retrievable by PII.
A Privacy Impact Assessment (PIA) is not required for this collection because PII is not being collected electronically.
Records Schedule DAA-0446-2022-0013, Item 0001, covers electronic files in NISS, including the current DD Form 441 and DD Form 441-1 for facilities with an active Facility Clearance (FCL). These records are maintained as long as the facility maintains an active FCL and are subject to the retention and disposition instructions for the associated Facility Profile: Facility profiles of terminated facilities without FOCI mitigation agreements are deleted 10 years after facility termination. Facility profiles of terminated facilities with FOCI mitigation agreements are deleted 15 years after facility termination.
11. Sensitive Questions
No questions considered sensitive are being asked in this collection.
12. Respondent Burden and its Labor Costs
Collection Instruments
[Department of Defense Security Agreement DD-441]
Number of Respondents: 3,291
Number of Responses Per Respondent: 1
Number of Total Annual Responses: 3,291
Response Time: 14 minutes
Respondent Burden Hours: 767.9 hours
[Department of Defense Security Agreement DD-441-1]
Number of Respondents: 1,132
Number of Responses Per Respondent: 1
Number of Total Annual Responses: 1,132
Response Time: 10 minutes
Respondent Burden Hours: 189 hours
Total Submission Burden
Part B: LABOR COST OF RESPONDENT BURDEN
Collection Instruments
[Department of Defense Security Agreement DD-441]
Number of Total Annual Responses: 3,291
Response Time: 14 minutes
Respondent Hourly Wage: $99.24
Labor Burden per Response: $23.16
Total Labor Burden: $76,206
[Department of Defense Security Agreement DD-441-1]
Number of Total Annual Responses: 1,132
Response Time: 10 minutes
Respondent Hourly Wage: $99.24
Labor Burden per Response: $16.54
Total Labor Burden: $18,723.28
Overall Labor Burden
Total Number of Annual Responses: 4,423
Total Labor Burden: $94,930
The Respondent hourly wage was determined by using the Bureau of Labor Statistics Website: https://www.bls.gov/oes/current/oes_nat.htm. The individuals that complete these forms are typically Chief Executive Officer (11-1011 and makes $99.24 as a median hourly wage) or other Executive Officer or Corporate Secretary.
13. Respondent Costs Other Than Burden Hour Costs
Printing: $330 (printer/scanner cost) x 4,423 (# of responses) x .01 (1% cost towards Form) = $14,595.9
14. Cost to the Federal Government
Part A: LABOR COST TO THE FEDERAL GOVERNMENT
Collection Instruments
[Department of Defense Security Agreement DD-441]
Number of Total Annual Responses: 3,291
Processing Time per Response: 5 minutes
Hourly Wage of Worker(s) Processing Responses: $53.45
Cost to Process Each Response: $4.45
Total Cost to Process Responses: $14,652.8
[Department of Defense Security Agreement DD-441-1]
Number of Total Annual Responses: 1,132
Processing Time per Response: 5 minutes
Hourly Wage of Worker(s) Processing Responses: $53.45
Cost to Process Each Response: $4.45
Total Cost to Process Responses: $5,040.1
Overall Labor Burden to the Federal Government
Total Number of Annual Responses: 4,423
Total Labor Burden: $19,692.90
Part B: OPERATIONAL AND MAINTENANCE COSTS
Cost Categories
Equipment: $0
Printing: $0
Postage: $0
Software Purchases: $0
Licensing Costs: $0
Other: $0
Total Operational and Maintenance Cost: $0
Part C: TOTAL COST TO THE FEDERAL GOVERNMENT
Total Labor Cost to the Federal Government: $19,692.90
Total Operational and Maintenance Costs: $0
Total Cost to the Federal Government: $19,693
* Hourly wage is based on the approximate salary of a GS-12, Step 4 in the Washington, D.C., Maryland and Virginia metropolitan area (effective January 2025): ($53.45) rate per hour)
15. Reasons for Change in Burden
The burden has increase since the previous approval due to the fact that the average hourly wage for respondents has increased due to inflation and cost of living adjustments. This resulted in an increase in the labor burden per response, even though the response time remains unchanged.
The number of respondents has increased commensurate with the expansion and growth of the National Industrial Security Program. This expansion reflects increased government contracting activity, new security requirements, and expansion of cleared facilities. This expansion has led to a corresponding increase in the total number of DD Form 441s and DD Form 441-1s processed annually, directly contributing to the overall increase in burden hours.
16. Publication of Results
The results of this information collection will not be published.
17. Non-Display of OMB Expiration Date
We are not seeking approval to omit the display of the expiration date of the OMB approval on the collection instrument.
18. Exceptions to “Certification for Paperwork Reduction Submissions”
We are not requesting any exemptions to the provisions stated in 5 CFR 1320.9.
| File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
| Author | Kaitlin Chiarelli |
| File Modified | 0000-00-00 |
| File Created | 2025-09-19 |