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The NISPOM Rule defines the SMO as an entity employee occupying a position in the entity with ultimate authority over the facility's operations and the authority to direct actions necessary for the safeguarding of classified information in the facility.

Federal contractors in the NISP need to be “cleared.” The firm/company must receive a Facility Security Clearance or an (FCL). Key Management Personnel or KMPs need Personnel Security Clearances (PCLs) before their firms/companies can be cleared.

The role of the SMO has not changed from the old NISPOM to the new NISPOM Rule. The NISPOM Rule now provides more detailed information on the responsibilities of the SMO. It more clearly defines the SMO's responsibilities with respect to ensuring the protection of classified information by their facility.

The National Industrial Security Program Operating Manual (NISPOM) establishes the standard procedures and requirements for all government contractors about classified information. It covers the entire field of government-industrial security-related matters.

The NISPOM establishes requirements for the protection of classified information disclosed to or developed by contractors, licensees, grantees, or certificate holders (hereinafter referred to as contractors) to prevent unauthorized disclosure.

The National Industrial Security Program Operating Manual (NISPOM) went through a major change in February of 2021. The document, which was formally a DoD manual, is now a federal rule known as 32 CFR Part 117.

The 32 Code of Federal Regulations Part 117, National Industrial Security Program Operating Manual," provides relevant information on oversight of the NISP. The 32 CFR Part 117 or NISPOM Rule replaced the NISPOM previously issued as a DOD policy (DOD 5220.22-M) on Feb. 24, 2021.