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The FAR Council Publishes Long-Awaited CUI Rule

Government Contracts Navigator

On January 15, 2025, the Federal Acquisition Regulation (“FAR”) Council issued its long-awaited “CUI Rule.” CUI, or Controlled Unclassified Information, is information that the government creates or possesses, or that an entity creates or possesses for or on behalf of the government, that a law, regulation, or governmentwide policy requires or permits an agency to handle using safeguarding or dissemination controls. For nearly 15 years, contractors have struggled to determine what information meets this definition. The CUI rule is an opportunity for the federal government to finally provide contractors with the guidance needed to better identify and safeguard the CUI they receive in connection with their federal contracts.

Contractors Handling CUI Will Be Subject to a New FAR Clause

The federal government will implement the bulk of the CUI Rule through a new FAR clause: FAR 52.204-XX. FAR 52.204-XX will apply to all contracts where CUI is involved in the contract, except for contracts that are for purely commercially available off-the-shelf items. The CUI rule also makes clear that federal agencies, not contractors, are responsible for determining whether contracts will involve CUI.

To read the full post, please visit our Government Contracts Navigator blog.