Who pays for security clearances? Do companies pay for
security clearances? Does a person/individual pay for a security clearance? How
is security clearances paid for? Does the government pay for security
clearances? How much does a security clearance cost?
First and foremost, let’s nip the myth that companies pay
for security clearances. They do NOT pay for them. I’ll post information at the
bottom of this post as proof, and there is a reason for it. Again, companies do
not pay for security clearances. PLEASE stop this myth. I’ll explain why this
is a problem as well.
Now, companies may pay for someone while the clearance is
being processed and the time spent by personnel to send the information but
they will not pay for the cost of an investigation (about $6k for a priority
TS).
I am writing this post because it will be Googled.
I'll go ahead and list some detailed information regarding
this because I feel that it's not fair for me to simply sit and say that it's
incorrect without backing it up.
To preface this, the reason why we do not allow contractors
to pay for clearances, or individuals, is because it creates a gap between
companies who have capital funding compared to small businesses. At least for
now, it's why the government covers the cost. The cost of the specific
investigation itself is billed by OPM/NBIB to the sponsoring agency. So for
instance, if you are Company A contracted directly under DoD, DoD will pay for
that billed investigation from OPM. If you are Company B, which is second tier
to Company A, DoD would still foot that bill. This applies in all organizations
and agencies. It's simply not permitted for a company/individual to pay for it.
The reason this is a pet peeve of mine is because the whole
misconception continues to cause us problems in contract management. The rumor
continues to spread and many of us in the NISP are trying really hard to stop
it. Why? Because it causes many issues with contracts for one, but it also
causes companies to not hire someone because they think they are footing the
bill.
And I mean this all respectfully; I'm not trying to be an
ass about it.
“Security clearances cost money. And for every step in the
life of your security clearance—from initial investigations to
reinvestigations, and even the new continuous evaluation checks—the federal
government pays. As NBIB explains, “Funding for NBIB is provided solely through
the Office of Personnel Management (OPM) Revolving Fund.” Here’s what that
means. Let’s say that some office in the Department of Defense hires a new
employee who requires some level of background check. In the end, that office
will pay for that clearance by way of the OPM revolving fund.”
Now, there has been a study conducted to allow contractors
to pay for clearances. It simply wasn't feasible for multiple reasons.
“There is a misconception that government contractors pay
for their own security clearance investigations. While there are costs
associated with maintaining a personnel security program or attempting to move
a candidate through the process, the investigations are all paid for by DSS
using appropriated funds.”
For clarity, this is under DoD contract management.
“The federal sponsor agencies pay OPM for the background
investigation service of the individual they wish to grant classified access. “
Additional information from FAS:
“According to the testimony of Stephen Lewis, Deputy
Director, Security Directorate, Office of the Under Secretary of Defense
(Intelligence), the costs for background investigations of individuals employed
by companies who contract with DOD are paid for by the department and not the
contractor because “analysis shows that if we were to allow the contractors to
build [the cost of those clearances] into the contract ... then they would add
overhead on the management of that, so the most cost-effective way was to
manage it from the department. We pay those costs, because we pay it either
way.”
Another bit of source:
“You do not have to pay for your security clearance
background investigation. Your military branch, federal agency/department or
prospective federal agency/department will pay for your security clearance
investigation. For DoD contractors, the Defense Security Service (DSS) will be
paying for all contractor-related security clearance investigations. Despite
the misconception, contracting companies in the NISP do not pay for the
security clearance investigations of their employees.”
More:
“Many contractors say that a security clearance is needed to
apply for their jobs. How can I get a security clearance in advance so I can
apply for these jobs and can I pay for it myself?”
“The Office of Personnel Management (OPM) has no procedure
for an individual to independently apply for an investigation or security
clearance. Security clearances are based on investigations requested by Federal
agencies, appropriate to specific positions and their duties. Until a person is
offered such a position, the government will not request or pay for an
investigation for a security clearance. “
Seriously, please stop this myth because it is causing so
many issues with contracting. If you are here, you’re likely finding yourself
trying to argue that a company pay’s for a clearance. Clearances cost about $6k
for a new priority TS. The agency that companies are under subsides the cost.
