President Biden Issues Cybersecurity Order Impacting Federal Contractors
Summary
Beyond causing long lines and shortages at the gas pump, the cyberattack on the Colonial Pipeline this month may have important implications for federal contractors. In furtherance of that goal, the order generally requires the following: • Evaluating, and potentially amending, contract terms between the federal government and its technology-related service providers, such that the service providers have a broader right (and in some cases, an affirmative duty) to disclose cyber threat information to federal agencies, and that they implement additional measures to cooperate with government agencies in monitoring for potential cyberattacks and responding to incidents. • Improving the federal government’s means to detect cyber incidents early and increasing requirements for logging events and preserving other threat data. Though Biden’s executive order directly impacts government contractors, these new requirements are yet another marker toward stringent contractual security terms with vendors more globally. All businesses should institute regular review of vendor agreements to ensure that they keep up with industry norms on data security.