The weekend’s disclosure that a U.S. Government contractor employee at Booz Allen Hamilton leaked top secret information to the press will have lasting repercussions for all government contractors working with sensitive information.

The most immediate impact may take the form of super-enhanced scrutiny of contractor’s compliance programs, training and enforcement procedures. Contractors that can’t prove effective compliance programs and enforcement could face contract terminations, show cause notices and/or suspensions.

Contractors can also expect the government to take a hard look at contractor’s project staffing decisions and their need-to know policies and procedures.

Contractors should also expect tougher security related terms in solicitations. They should expect increased weight placed on security compliance in the evaluation criteria and in source selection.

It would also not be surprising to see a renewed push for insourcing of sensitive work now that confidence in the contractor industry has been shaken.

In light of recent events, it is critical that all government contractors handling classified information review its policies, training and compliance with all security-related obligations. Blank Rome attorneys can assist your organization in auditing current policies and procedures related to the handling and storing of classified data, identify open security loopholes and areas of risk exposure, recommend improvements, and conduct enhanced training of employees.

In the current environment, increased due diligence is not only wise, but critical to fortify your organization from the increased scrutiny that is sure to come.