DFARS 252.204-7012 requires defense contractors to protect Controlled Unclassified Information (CUI) by implementing NIST SP 800-171 security requirements, developing a System Security Plan (SSP), and reporting cyber incidents within 72 hours.

All subcontractors must fully adhere to DFARS 252.207-7012 and have complete cybersecurity controls and reporting procedures in place.

Cloud service providers critical to defense contractors must meet stringent security standards including obtaining FedRAMP authorization and implementing additional DFARS 252.204-7012 specified security measures for Covered Defense Information protection.

Defense contractors must ensure subcontractor compliance with DFARS 252.204-7012 through flow-down requirements and are also responsible for CMMC certification which includes third-party assessment and overlaps with some DFARS requirements but introduces additional data protection controls.