Purpose. This section provides policy and describes the background investigative requirements for contractors (and contractor personnel), subcontractors (and subcontractor personnel), and those providing advisory and assistance services to determine their fitness for work on IRS contracts. Hereafter the term IRS contract refers to contracts, solicitations, orders, and awards for services (e.g., courier, mail, or janitorial services, etc.) granted by an IRS official, under which contractor (including subcontractor) employees require staff-like access to IRS-owned or controlled facilities (includes leased or contracted space), IT systems, SBU information, or security items or products. These individuals (all of whom are collectively referred to hereinafter, as "contractor employees," as appropriate) include but are not limited to:

Audience. The policy and guidance in this IRM apply to all business units.

Policy Owner. IRS Human Capital Officer.

Program Owner. Human Capital Office Policy and Audits and Personnel Security, Talent and Acquisition (TA) Division.

Contact Information. Website at: Personnel Security

Unless specified otherwise in this IRM, each contractor employee assigned to work under an IRS contract shall undergo investigative processing commensurate with the position risk level designation associated with the work to be performed, and comparable to that required for federal employees who occupy the same positions and who have the same position risk designation.

Investigative requirements also apply when permitting contractor employees staff-like access to IRS-owned or controlled facilities, IT systems, SBU information, or security items or products even if no formal contract was awarded by Procurement. In such instances, the responsibility for meeting investigative requirements described in this IRM rests with the BU authorizing access for these contractor employees.

In accordance with TD P 15-71, contractor employees hired for work within the United States or its territories and possessions and who require staff-like access to IRS-owned or controlled facilities, IT systems, SBU information, or security items or products, shall either be U.S. citizens or have LPR status.

IRS will adhere to the following standard when allowing contractor employees staff-like access to IRS-owned or controlled facilities, IT systems, SBU information, or security items or products:

PS/CSO is responsible for sponsoring contractors in USAccess. The contractor employee will:

In rare instances, ink and roll fingerprints will be taken by IRS Offices or approved enrollment stations. The authorized representative should complete two fingerprint cards for each contractor employee.

The integrity of the chain of custody of the completed ink and roll fingerprint card must be maintained; therefore, the completed fingerprint card must be mailed directly to PS/CSO by the entity administering the fingerprinting.

When the contractor employee will not have physical or systems access, non-custodial fingerprints taken at police or law enforcement offices can be utilized. The chain of custody requirement in HSPD-12 is not required for these contractor employees.

Any costs for fingerprinting outside an IRS office (except for an IRS approved enrollment station) will be borne by the contractor vendor or contractor employee.

Every IRS position, including those of contractor employees, must be designated with a position risk designation. Contractor employees must meet personnel suitability standards commensurate with their position risk designation. Refer to IRM 10.23.3.4, Scope of Position Designation System.

Interim staff-like access approval may be granted prior to the completion of the background investigation. Due to the risk associated with granting staff-like access prior to the completion of the required background investigation, interim staff-like access will only be granted in cases where it has been determined that the risk is acceptable.

Contractor employees who have been approved for interim staff-like access are granted staff-like access while in IRS-owned or controlled facilities (includes leased or contracted space), except for designated limited areas. Refer to IRM 10.2.18.5.1, Unescorted Access and IRM 10.2.18.8, Limited Area Access.

Interim staff-like access approval is based on the following eligibility/suitability checks:

Contractor employees who possess a current active U.S. Government security clearance for access to classified NSI may be granted interim staff-like access for positions after:

PS will accept background investigations and adjudications conducted by other federal agencies unless it is determined that the background investigation or adjudication does not sufficiently address the standards used by PS in determining contractor fitness.

Completed background investigations and final favorable adjudications will be accepted for staff-like access unless:

Additional requirements must be met for all position risk levels for final staff-like access to be granted: fingerprint screening, selective service registration, citizenship/residency requirements and full federal tax compliance.

Contractor employees who have been approved for final staff-like access, based on a favorably adjudicated background investigation, are granted staff-like access while in an IRS-owned or controlled facility (which includes leased or contracted space), except for designated limited areas. Refer to IRM 10.2.18.5.1, Unescorted Access and IRM 10.2.18.8, Limited Area Access.

Contractor employees who require staff-like access to IRS-owned or controlled facilities, IT systems, SBU information, or security items or products, regardless of location, must complete mandatory SAT before access is granted as described in IRM 10.23.2.10.

When the investigation is completed and the results are favorable, PS will e-mail the COR a memorandum of notice of final staff-like access approval.

The memorandum of notice of final staff-like access approval must be attached to the Request for ID Media/Access Card for Contract Employee application. For system access, the COR must have this memorandum of notice of final staff-like access approval on file before initiating a BEARS, Information System User Registration/Change Request. The COR will inform contractor employee of ID card pick up procedures.

When the results of the investigation are unfavorable and final staff-like access is not granted, PS will email the COR a memorandum of notice of final staff-like access denial. Refer to IRM 10.23.2.11 for more details of actions taken when the results are unfavorable.

Contractor employees who require staff-like access to IRS-owned or controlled facilities, IT systems, SBU information, or security items or products, regardless of location, must complete mandatory SAT upon on-boarding and yearly thereafter.

The COR or Manager of Record (MOR) is responsible for ensuring contractor employees receive SAT within five business days of being granted interim/final staff-like access. This training must be completed before being granted access to IRS-owned or controlled facilities, IT systems, SBU information, or security items or products. The SAT results must be uploaded in the Integrated Talent Management system to maintain staff-like access. For more information about SAT, refer to IRM 10.8.1.3.2, AT-1 Awareness and Training Policy and Procedures and for physical access, IRM 10.2.18, Physical Access Control .

If the contractor employee has IT Privileged Access, the COR or MOR is responsible for ensuring the contractor employee completes the Specialized IT Security Training pertinent to their roles and responsibilities before being granted access to the IT system or performing assigned duties. Contractor employees with such access are required to complete specialized training annually. Refer to IRM 10.8.1.3.2.2, AT-3 Role Based Training and IRM 10.8.2, Information Technology (IT) Security, IT Roles and Responsibilities.

When adverse information is discovered or detected during an investigation, the scope of the inquiry may be expanded to obtain additional information to determine whether the contractor employee may continue staff-like access to IRS-owned or controlled facilities, IT systems, SBU information, or security items or products.

If adverse information that may warrant action is discovered during a background investigation, the contractor employee must be so advised and offered an opportunity to refute, explain, clarify, or mitigate the information in question. The contractor employee will be advised that the IRS will not disclose any details of the adverse information to the vendor.

If after final adjudication, a determination is made of ineligibility to render services on a contract and access to IRS-owned or controlled facilities is denied, the contractor employee will be formally notified and informed of the decision and the reason(s). The vendor will be advised only that the contractor employee is denied employability on the IRS Government funded contract. This decision does not intend to imply that the contractor employee’s suitability for employment elsewhere in the company is affected.

Other federal agency personnel who require periodic access, on a recurring basis, may be granted staff-like access to IRS-owned or controlled facilities, IT systems, SBU information, or security items or products. The individual must have a completed and favorably adjudicated background investigation at, or higher, than the risk level of the work to be performed or the access to the controlled IRS work area. The background investigation and adjudicative determination must be verified through the parent agency’s security office and/or the appropriate OPM security indices. Refer to the following standard operating procedures, which are located on the PS Website.

Contractor employees must be escorted in the following instances, but will not be permitted to access IRS IT systems or SBU information:

When there is a material change in the IRS contract or working situation, revalidation of staff-like access is required for the affected contractor employee(s). Examples of material changes include:

In these situations, the following will occur:

Federal tax compliance checks are conducted on all revalidations.

Contractor employees in positions designated as high and moderate risk will be subject to re-investigation every five years.

Contractor employees in positions designated as low risk require an FBI fingerprint and a tax check every five years.

CORs are responsible for:

When a contractor employee leaves the contract, the following occurs:

IRS personnel security officers, in consultation with IRS IT systems security officers, COs, and CORs, must ensure all contractor employees requiring access to SBU information execute an NDA as a condition thereof.

Solicitations and contracts shall include a clause that requires position risk designations for the contractor employee, background investigation, or screening and federal tax compliance before staff-like access is granted to IRS-owned or controlled facilities, IT systems, SBU information, or security items or products.

The clause shall require the successful contractor’s employees to execute appropriate security forms including non-disclosure agreements (as required) prescribed by IRS PS prior to contract work being performed, and in advance of being granted staff-like access to IRS-owned or controlled facilities, IT systems, SBU information, security items or products (refer to IRM 10.23.2.2, General Investigative Requirements, IRM 10.23.2.17, Non-Disclosure Agreement (NDA) for SBU Information and TDP 15-71, Treasury Security Manual, Chapter II, Section 2, item 8, Nondisclosure Agreement for Sensitive Information).

PII in personnel security investigations, records, and operations shall be carefully safeguarded to protect the interests of both the individual and the IRS, pursuant to requirements of the Privacy Act. Unless categorized at a higher level, or determined to be classified NSI, personnel security information must be afforded the same degree of protection as material identified as SBU as defined in IRM 10.5.1.2.2, Sensitive But Unclassified (SBU) Data, and must be used only for authorized official purposes. When not in use, personnel security information must be stored in a General Services Administration approved security container or in an equally secure area.

Personnel Security investigation information requested by the subject of an investigation must be processed according to procedures established by IRS under provisions of the Privacy Act or the Freedom of Information Act, as appropriate. Requests for the release of the results of any personnel security investigation shall be referred to the Treasury/bureau or non-Treasury agency that conducted it.

Reports containing classified NSI must be protected in accordance with EO 13526, Classified National Security Information and appropriate Treasury regulations. For protection of NSI within the IRS, refer to IRM 10.9.1, Classified National Security Information .

For participants on advisory committees, pre-appointment checks are required which include a fingerprint check and tax check that is requested by the authorized IRS sponsoring official (SO). The authorized IRS SO must request the fingerprint check through PS. For more details about the appointee’s screening process, refer to IRM 6.304.1, Expert and Consultant Appointments.

Current IRS Advisory Committees are:

In accordance with Wage and Investment’s, Lockbox Security Guidelines, Section L.S.G.2.4.3, Employee Background Investigations, Lockbox employees must have an approved background investigation screening by IRS PS before being granted staff-like access to any lockbox facility, IT system (no matter where located), and/or sensitive data or information. Background investigations are conducted on a position risk basis as follows:

The investigative costs for background investigations are funded by HCO.

The funds for specific types of investigations will be transferred to HCO from the servicing private collection contractor/center. The SBSE organization is responsible for completing the action in the Integrated Financial System.

Adjudication - The evaluation of information in an individual’s background investigation or any other relevant/reliable information to determine if an individual is suitable or fit to perform work for or on behalf of the federal government; eligible for logical or physical access; or eligible to hold a sensitive position. An adjudicator carefully weighs information gathered during the background investigation (favorable-unfavorable, past-present) to reach a final determination.

Adjudicator - A trained personnel security specialist who evaluates background investigations and other pertinent information to make employment suitability and national security eligibility determinations.

Adverse Information - Information that adversely reflects on a person’s character, integrity or reliability that suggests that their ability to safeguard sensitive information may be impaired, or that their employment and national security eligibility is not in the best interest of the IRS. For example, a history of misbehavior, i.e., drug abuse, criminal activity, employment misconduct, etc.

Background Investigation - An official examination of facts or other pertinent information that covers a defined period of normally no more than 10 years. The information is compiled from a review of various records, interview with the subject, and interviews with persons who have knowledge of the subject. The information collected must be sufficient to allow an affirmative or negative determination of a person’s eligibility and suitability to work for the federal government.

Classified National Security Information (NSI) - Information controlled by the U.S. Government that has been determined pursuant to EO 13526, Classified National Security Information, or any predecessor order to require protection against unauthorized disclosure and is marked to indicate its classified status when in documentary form.

Continuous Evaluation (CE) – A vetting process to review the background of an individual who has been determined to be eligible for access to classified NSI or to hold a sensitive position at any time during the period of eligibility. CE leverages a set of automated record checks to assist in the assessment of an individual’s continued eligibility.

Contract - A mutually binding legal obligation or agreement for services/supplies prepared or granted by or on behalf of the Secretary of the Treasury or a Treasury/bureau head.

Contracting Officer (CO) - A U.S. Government official having written, designated authority to enter into, administer, and/or terminate contracts and make related determinations and findings with respect thereto on behalf of the United States government.

Contracting Officer’s Representative (COR) - An individual designated and authorized by the CO to perform contract administration activities on their behalf within the limits of delegated authority for a specific acquisition or contract.

Contractor Employee - An individual, not a federal employee, that performs work for or on behalf of the federal government.

Contractor Employee Fitness Determination - A fitness determination based on an individual’s character and conduct to work for or on behalf of the federal government as a contractor employee.

Controlled Facility - A designated facility, building, office where only personnel assigned to work in such areas are authorized unescorted access.

Credit Check - A credit history report conducted on the subject of a background investigation. The report contains financial information collected from creditors, lenders, and public records and organized by credit bureaus or other credit reporting services.

Defense Information System for Security (DISS) - A system of record for personnel security, suitability, credential management for the Department of Defense employees, military personnel, civilians, and contractors. DISS also provides secure communications between Adjudicators and Security Officers in support of eligibility and access management.

Defense Security Counterintelligence Agency (DCSA) - Primary investigative service provider for conducting efficient and effective background investigations and continuous vetting to safeguard the integrity and trustworthiness of the federal and contractor workforce. DCSA conducts background investigations for 95% of the federal government, including 105 departments and agencies.

Escorted Access - A contractor employee not yet granted staff-like access that needs to be accompanied by an "authorized escort" during work performance and movement throughout the facility.

Federal Tax Compliant - Federal tax returns are timely and accurately filed and timely payment of taxes without penalties or interest.

Fingerprint Check - Also referred to as a criminal history record or rap sheet - Is a listing of specific information taken from fingerprint submissions retained by the FBI in connection with arrests and, in some instances, federal employment, naturalization, or military service.

Foreign National - An individual who is not a U.S. citizen or a LPR authorized to reside in the U.S.

High Risk Position - A public trust position that has the potential for exceptionally serious impact on the "efficiency of the service" involving duties especially critical to the agency or a program mission with broad scope of policy or program authority.

Interim Staff-like Access - Access granted on a temporary basis based on the completion of minimum investigative requirements pending the completion of full investigative requirements, including receipt and adjudication of the individual’s completed background investigation.

IT Privileged Access - Administrator or root access to DS, DSTEST and IRSNET domains that contain highly sensitive, critical information. Refer to IRM 10.23.2.5.2 for examples of DS and IRSNET domains.

Lawful Permanent Resident (LPR) - A non-U.S. citizen who resides in the U.S. under legally recognized and lawfully recorded permanent residence as an immigrant. Also known as permanent resident alien, resident alien permit holder, and green card holder.

Lockbox Employee - An individual employed by a commercial bank that processes financial transactions for Treasury/bureaus.

Low Risk Position - Positions involving duties that have the potential for limited impact upon the agency mission based upon their limited program responsibilities that affect the "efficiency of the service."

Moderate Risk Position - A public trust position involving duties having the potential for moderate to serious impact on an agency or a program mission with significant program responsibilities and delivery of customer services to the public.

National Security Position - Any position, the occupant of which could bring about, by virtue of the nature of the position, a material adverse effect on national security. Such positions include, but are not limited to, those requiring eligibility to classified NSI; protecting the nation from acts of terrorism, espionage, or foreign aggression; and developing plans or polices related to national defense/military operations. Refer to 5 CFR 1400, Designation of National Security Positions, Section 1400.102.

National Industrial Security Program (NISP) – A single, integrated, cohesive industrial security program established by EO 12829 to protect federal government classified NSI that is released to contractors, licensees, and grantees of the United States Government and to preserve our Nation’s economic and technological interests.

Non-Disclosure Agreement (NDA) - A legally binding contract executed by an individual to protect U.S. Government sensitive and/or classified NSI from unauthorized disclosure. The agreement is a condition to have access to sensitive/classified NSI and specifies the security requirements and penalties for noncompliance. For access to classified NSI, the Classified Nondisclosure Agreement (SF 312) is required.

Notification of Access - A written notice delivered to the COR and contractor employee that signifies the final staff-like access determination.

Office of Personnel Management (OPM) - OPM is an independent federal agency that works in numerous broad areas to recruit and retain a first-rate federal workforce, which includes individuals performing work for or on behalf of the federal government.

Periodic Reinvestigation - An investigation that is required every five years for contractor employees who perform work for or on behalf of the federal government and are in positions designated high and moderate risk.

Personally Identifiable Information (PII) - Also considered SBU information. Information that is linked or linkable to an individual that must be protected to prevent the possibility of identity theft or invasion of privacy.

Personnel Security (PS) - An organization comprised of security specialists that are engaged in the formulation and application of security policies and procedures involving the trustworthiness and loyalty of persons employed with the federal government in sensitive and non-sensitive positions.

Position Designation Tool (PDT) - A logical questionnaire-based system designed by OPM to guide agencies in determining the proper level of investigation and screening required based on an assessment of risk and national security sensitivity.

Position Sensitivity - A risk designation based on an assessment of the degree of damage that an individual, by virtue of the occupancy of a position, could have an effect on the "efficiency of the service."

Pre-screen - A preliminary review of a security questionnaire and security checks to render an interim employment eligibility and suitability or fitness determination before initiating a background investigation.

Proposal to Deny Letter - A written notice delivered to the contractor employee when unfavorable information is discovered during a background investigation that could adversely affect the individual’s employment suitability. The notice gives the individual the opportunity to refute, explain, clarify, or mitigate the information in question prior to PS making a final determination.

Public Trust Position - Positions at the high or moderate risk levels as determined by the position’s potential for adverse impact to the "efficiency of the service." Such positions may involve policy making, major program responsibility, public safety and health, law enforcement duties, fiduciary responsibilities or other duties demanding a significant degree of public trust, and positions involving access to or operation or control of financial records, with a significant risk for causing damage or realizing personal gain.

Qualified Escort - An IRS employee or a contractor employee approved for final staff-like access at the same or higher position risk level as the contractor employee who requires escorting. At least one qualified escort per every five escorted persons is required and must accompany the escorted persons during work performance and throughout the facility. Refer to IRM 10.2.18.5.2, Escorted Access.

Reciprocity - Recognition and acceptance of prior background investigations and favorable fitness determinations conducted by another federal agency, without further processing when the determination was based on equivalent criteria used by gaining agency, i.e., investigation meets or exceeds required position risk/sensitivity level, investigation completed within the last five years.

Revalidation of Access - Reconfirmation of a contractor employee’s staff-like access when there are any material changes to a contract, a contractor employee name change, movement from one contract to another contract, or work performance on multiple contracts.

Security Clearance - Certification issued by a designated personnel security official or designee that grants an individual access to classified NSI, on a need-to-know basis, up to the required classification level (Top Secret, Secret, or Confidential) to perform official duties.

Security Items - Items that must be stored in a locked container, security container, or a secure room. These items include, but not limited to security devices/records, computer equipment, ID media. For details, refer to IRM 10.2.15, Minimum Protection Standards.

Sensitive But Unclassified Information (SBU) - Any sensitive information (including tax and tax-related information) that requires protection due to the risk and magnitude of loss or harm to the IRS or the privacy to which individuals are entitled under Section 552a of Title 5, United States Code (the Privacy Act), which could result from inadvertent or deliberate disclosure, alteration, or destruction.

Sensitive Position – Positions that the occupant could bring about, by virtue of the nature of the position, a material adverse effect on the national security, regardless of whether the occupant has access to classified NSI.

Staff-like Access - Refer to IRM 10.23.2.1, Program Scope and Objectives.

Staff-like Access Denial - An adjudicative decision to deny access based on information revealed in a background investigation, other relevant information, or both that indicates that contractor employee is not fit to perform work for or on behalf of the federal government.

Staff-like Access Revocation - An adjudicative decision to permanently withdraw the contractor employee’s staff-like access based on a background investigation, other relevant information, or both, that a cleared contractor employee is no longer fit to perform work for or on behalf of the federal government.

Subcontractor - A supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime contractor or another subcontractor. A subcontractor is considered a prime contractor in relation to each of its subcontractors.

U.S. Citizen - A person born in the U.S. or its territories or born in a foreign country to U.S. born parents are U.S. citizens by birth. A person not born in the U.S. can voluntarily become a naturalized U.S. citizen once all eligibility requirements are met. Also, a minor can derive U.S. citizenship following the naturalization of one of both parents.

Vendor - A business or person who provides goods or services.