DOD Reminds Contracting Officers that DFARS Cyber Clauses Have Consequences

On June 16, 2022, the DoD issued a memorandum “reminding” contracting officers that noncompliance with the Defense Federal Acquisition Regulation Supplement clause 252.204-7012, “Safeguarding Covered Defense Information and Cyber Incident Reporting,” may constitute a breach of contract, and that such breach may justify the government’s withholding progress payments, foregoing remaining contract options and potentially terminating part of or the entire contract.