Purpose of DD Form 254
The main purpose of the DD Form 254 is to provide cleared contractors with the necessary security classification guidance to properly protect classified information during contract performance. It details:
- Classification levels (Confidential, Secret, Top Secret)
- Safeguarding and storage requirements
- Access and personnel clearance needs
- Handling, marking, and dissemination rules
- Distribution and reporting requirements
Federal Acquisition Regulation (FAR) and the National Industrial Security Program Operating Manual (NISPOM, 32 CFR Part 117) mandate its use for contracts requiring access to classified information.
Who Needs a DD Form 254?
Any U.S. contractor or subcontractor awarded a DoD contract involving classified information must receive a DD Form 254. This includes:
- Prime contractors
- Subcontractors at all tiers
- Companies performing on solicitations (RFPs, etc.) with potential classified access
It is required throughout all phases of the contracting lifecycle. A new form is typically issued for each new contract or significant change.
Key Sections of the DD Form 254
The current April 2018 version of the form includes 18 items covering:
- Item 1: Clearance and Safeguarding levels
- Item 2: Prime Contract, Subcontract, or Solicitation number
- Item 3: Original or Revised specification
- Contractor identification (CAGE code, address)
- Classification guidance details
- Required distribution and signatures
Attachments and references often provide more detailed classification guidance.
How to Complete DD Form 254: Step-by-Step?
Follow the official instructions from the Executive Services Directorate. Key steps include:
- Determine the highest Facility Clearance Level (FCL) required (Item 1a)
- Specify safeguarding level for storage at the contractor facility (Item 1b)
- Enter contract/solicitation numbers (Item 2)
- Mark as Original or Revised with date (Item 3)
- Provide detailed classification guidance in subsequent items
- Identify required distribution (Item 17)
The form can be generated electronically through the National Industrial Security Program (NISP) Contract Classification System (NCCS).
Download Official DD Form 254
Official Blank Form: Download DD Form 254 PDF
Instructions for Completing DD Form 254: Download Official Instructions (Updated July 2025)
DD Form 254 Best Practices for US Contractors
- Verify Facility Clearance (FCL) status via DCSA’s National Industrial Security System (NISS)
- Ensure the form is never left blank and is properly signed
- Issue separate DD Forms 254 for each subcontractor
- Update and reissue the form for any changes in classification guidance
- Work closely with your Facility Security Officer (FSO) and Government Contracting Activity (GCA)
Related Regulations and Resources
- Defense Counterintelligence and Security Agency (DCSA)
- Center for Development of Security Excellence (CDSE) – Training on DD Form 254
- 32 CFR Part 117 – NISPOM
- FAR 4.402 – Safeguarding Classified Information