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It’s been a hot summer so far but Federal Risk and Authorization Program (“FedRAMP”) is just starting to heat up. In June, FedRAMP (the Federal government’s program for security authorizations for cloud solutions) released the final Emerging Technology Prioritization Framework, which outlines the prioritization of certain artificial intelligence capabilities. In mid-July, FedRAMP announced its Agile Delivery pilot program, which is a new process for reviewing significant changes without the need for advanced approval. FedRAMP also announced a new technical documentation hub (automate.fedramp.gov) that focuses on provided support to cloud service providers in the development of digital authorization packages. Lastly, just as the heat wave in Washington, D.C. ended, FedRAMP published the final version of the FedRAMP OMB Memo (“OMB Memo”) on July 26, 2024. The OMB Memo revamps FedRAMP through changes to the authorization paths and continuous monitoring and incident response processes, as well as enhancements through automation. Below are key points to know about each FedRAMP update released this summer.Continue Reading Summer Heat Ramping Up: FedRAMP Releases Final OMB Memo and Announces Update on Roadmap Progress, Automation Site Launch, and the Agile Delivery Pilot Launch

For companies in the U.S. that hold certain personal data and U.S. Government-related data, rules stemming from recent Executive Order (“EO”) 14117 on “Preventing Access to Americans’ Bulk Sensitive Personal Data and United States Government-Related Data by Countries of Concern” may create obstacles and new compliance obligations. Under this EO, the Attorney General is charged with issuing regulations to either outright prohibit or impose restrictions on transactions involving bulk sensitive personal data or U.S. Government-related data when such transactions involve a “country of concern.”Continue Reading Data, Deals, and Diplomacy: How the Bulk Data Executive Order Will Shape Future Contracts and Security Practices

On June 17, 2024, the Department of Justice (“DOJ”) announced the latest settlement under its Civil Cyber-Fraud Initiative (“CCFI”) (previously discussed here).[1] The settlement resulted in a total of $11,300,000 in payments from two consulting companies (Guidehouse, Inc., the prime contractor, which paid $7,600,000; and Nan Kay and Associates, the subcontractor, which paid $3,700,000) to resolve allegations the two companies violated the False Claims Act by failing to meet cybersecurity requirements in federally-funded contracts.Continue Reading Latest Cyber-Related FCA Settlement Underscores the Breadth of DOJ’s Civil Cyber-Fraud Focus

On April 1, 2024, the FAR Council published a new Final Rule that establishes FAR Part 40 – but without any new provisions of substance. This Final Rule becomes effective on May 1, 2024. Subsequently, the FAR Council published a Request for Information (“RFI”) on April 10, 2024. The RFI seeks feedback on the scope and organization of FAR Part 40 and is open for comment until June 10, 2024.Continue Reading Not an April Fools Joke – FAR Part 40 Final Rule Has Been Published

On March 28, 2024, the Office of Management and Budget (“OMB”) issued Memorandum M-24-10, Advancing Governance, Innovation, and Risk Management for Agency Use of Artificial Intelligence (the “Memo”). This is the final version of a draft memorandum OMB released for public comment on November 1, 2023. The Memo primarily focuses on agency use of AI and outlines minimum practices for managing risks associated with the use of AI in the federal government. The Memo also provides recommendations for managing AI risks in federal procurement of AI that industry should keep in mind, specifically entities developing AI tools to sell to the federal government.Continue Reading Better Safe Than Sorry: OMB Releases Memorandum on Managing AI Risks in the Federal Government

The Cybersecurity and Infrastructure Security Agency (“CISA”) recently released its new Proposed Rule pursuant to the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (“CIRCIA”), which was published in the Federal Register on April 4, 2024 and is open for public comment through June 3, 2024. The Proposed Rule will be published in Part 6 of the Code of Federal Regulations, in a new Section 226, as part of the Department of Homeland Security’s regulations on Domestic Security.Continue Reading CISA Cyber Incident Reporting for Critical Infrastructure Will Significantly Impact Government Contractors, Suppliers, and Service Providers

On March 11, 2024, the Cybersecurity and Infrastructure Security Agency (“CISA”) and the Office of Management and Budget (“OMB”) released the highly-anticipated Secure Software Development Attestation Form (also known as the “Common Form”) and on March 18, 2024 CISA’s repository for the forms went live.Continue Reading CISA Opens Repository for Submission of Software Security Attestation Forms

On January 26, 2024, the Federal Risk and Authorization Management Program (“FedRAMP”) published a draft Emerging Technology Prioritization Framework developed in response to President Biden’s Executive Order 14110 on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (previously analyzed by our colleague here and discussed in a flash briefing available here). The Executive Order charged FedRAMP with developing a framework to prioritize Emerging Technologies in the FedRAMP authorization process, starting with generative AI.Continue Reading Emerging AI Landscape: FedRAMP Publishes Draft Emerging Technology Prioritization Framework in Response to Executive Order on Artificial Intelligence

To kick off the New Year, Sheppard Mullin’s Governmental Practice Cybersecurity & Data Protection Team has prepared a cybersecurity-focused 2023 Recap (including links to all of the resources the team has put out over the past year) and 2024 Forecast (that previews what we expect to see in 2024). This Recap & Forecast covers the following five high-interest topic areas related to cybersecurity and data protection:Continue Reading Governmental Practice Cybersecurity and Data Protection, 2023 Recap & 2024 Forecast Alert

On December 12, 2023, the Department of Justice (“DOJ”) issued guidance related to the process by which companies may request the United States Attorney General authorize delays of cyber incident disclosures, pursuant to a new Securities and Exchange Commission (“SEC”) rule. As a reminder, the SEC rule (which went into effect on Dec. 18, 2023) requires companies to disclose material cyber incidents via Form 8-K within four days of making a materiality determination. Our colleagues previously discussed the SEC rule and its new cyber reporting requirements here.Continue Reading For Limited Use Only: Guidance on National Security Delay Determinations under the SEC Cyber Reporting Rule