DOD Contractor Cybersecurity Rule Brings New FCA Risks

Law360 (October 21, 2020, 5:24 PM EDT) — The U.S. Department of Defense recently published an interim rule to establish new methods for assessing contractor implementation of cybersecurity requirements.[1] The interim rule presents new and significant areas of potential liability for contractors under the False Claims Act.

Most notably, the interim rule will require many contractors to conduct a self-assessment of their cybersecurity and submit, as a condition for award, a summary-level score reflecting the state of their compliance. This requirement creates FCA risks that contractors should fully understand and appreciate before the interim rule takes effect on Nov. 30, and which may require prompt action thereafter to enhance…

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