Glossary / Defense / DFARS 252.204-7012

DFARS 252.204-7012

Also known as: DFARS 7012 · Safeguarding Covered Defense Information and Cyber Incident Reporting

Defense

The DoD contract clause that requires defense contractors to safeguard sensitive information and report cyber incidents within 72 hours.

DFARS 252.204-7012, titled "Safeguarding Covered Defense Information and Cyber Incident Reporting," is a Department of Defense contract clause (codified at 48 CFR 252.204-7012) that applies to contractors and subcontractors whose systems store, process, or transmit Covered Defense Information (CDI) — a category that includes Controlled Unclassified Information (CUI). It requires the contractor to provide "adequate security" on covered information systems by implementing the security requirements in NIST Special Publication 800-171, to report any cyber incident to the DoD within 72 hours of discovery through the reporting portal at https://dibnet.dod.mil, and to preserve affected media for DoD review. Under paragraph (m), the clause must be flowed down without alteration into subcontracts that involve covered defense information or operationally critical support.

Source: DFARS 252.204-7012 (eCFR, 48 CFR 252.204-7012)

Where you'll see it

Vendor contractApplicationPolicy

Why it matters for your business

  • If a defense contract includes this clause, the startup must have NIST SP 800-171 controls in place — not just promise them — before handling covered information.
  • The 72-hour reporting duty and the flow-down obligation make cyber posture a contractual, not just technical, question that affects cyber-liability underwriting.
  • A misrepresentation about 7012/800-171 compliance can create False Claims Act exposure that touches D&O and E&O coverage.

People also ask

How fast must a cyber incident be reported under DFARS 252.204-7012?

Within 72 hours of discovery of any cyber incident, reported to the Department of Defense through the DIBNet portal at https://dibnet.dod.mil.

Does DFARS 252.204-7012 flow down to subcontractors?

Yes. The clause must be included, without alteration, in subcontracts that involve covered defense information or provide operationally critical support — so subcontractors carry the same safeguarding and reporting duties.

Ready to take the next step?

Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.