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Unauthorized disclosure of classified information can cause up to exceptionally grave damage to national security. The Department of Defense (DOD) is responsible for about 2 million personnel with clearances that allow them access to classified information.
In fiscal year 2004 federal spending on service contracts grew to over $189 billion governmentwide. This growth, along with cuts in the acquisition workforce and increases in high-dollar procurement actions, creates a challenging environment.
The Department of Defense (DOD) is on the brink of operations in Iraq while seeking to respond to changes in security threats and still meeting the challenges transforming the military. DOD spends an average of $150 billion annually on acquisitions that support these and other missions.
The Federal Information Security Management Act of 2002 reauthorizes and expands the information security, evaluation, and reporting requirements enacted in the National Defense Authorization Act for Fiscal Year 2001.
Provisions in the National Defense Authorization Act for Fiscal Year 2001 seek to minimize pervasive information security weaknesses that place federal operations at significant risk of disruption, tampering, fraud, and inappropriate disclosure of sensitive information.
This testimony discusses the Department of Defense's (DOD) use of the Office of Management and Budget's Circular A-76, which establishes federal policy for the performance of recurring commercial activities.