Executive Order 13764

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Presidential Documents

Federal Register
Vol. 82, No. 13
Monday, January 23, 2017

Title 3—

Executive Order 13764 of January 17, 2017

The President

Amending the Civil Service Rules, Executive Order 13488,
and Executive Order 13467 To Modernize the Executive
Branch-Wide Governance Structure and Processes for Security Clearances, Suitability and Fitness for Employment, and
Credentialing, and Related Matters
By the authority vested in me as President by the Constitution and the
laws of the United States of America, and as part of continuing efforts
to modernize the overarching executive branch enterprise to ensure that
all persons performing work for or on behalf of the Government are and
continue to be loyal to the United States, reliable, trustworthy, and of
good conduct and character, and by using mutually consistent standards
and procedures, it is hereby ordered as follows:
Section 1. Amendments to the Civil Service Rules. (a) Civil Service Rule
II is amended as follows:
(i) The title to 5 CFR Part 2 is revised to read as follows:
‘‘PART 2—APPOINTMENT THROUGH THE COMPETITIVE SERVICE;
RELATED MATTERS (RULE II)’’
(ii) The title to 5 CFR 2.1 is revised to read as follows:
‘‘§ 2.1 Competitive examinations and eligible registers; suitability and
fitness for civil service employment.’’

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(iii) 5 CFR 2.1(a) is revised to read as follows:
‘‘(a) OPM shall be responsible for:
‘‘(i) Open competitive examinations for admission to the competitive
service that will fairly test the relative capacity and fitness of the persons examined for the position to be filled.
‘‘(ii) Standards with respect to citizenship, age, education, training
and experience, physical and mental fitness, and for residence or
other requirements that applicants must meet to be admitted to or
rated in examinations.
‘‘(iii) Standards of suitability based on character and conduct for appointment to a position in the competitive service, for appointment
to a position in the excepted service where the incumbent can be
noncompetitively converted to the competitive service, and for career
appointment to a position in the Senior Executive Service.
‘‘(iv) Minimum standards of fitness based on character and conduct
for appointment in any other position in the excepted service of the
executive branch, except for (A) positions in any element of the intelligence community as defined in the National Security Act of 1947,
as amended, to the extent they are not otherwise subject to OPM appointing authorities, and (B) positions where OPM is statutorily precluded from prescribing such standards.’’
(b) Civil Service Rule V is amended as follows:
(i) 5 CFR 5.2(a) is revised to read as follows:
‘‘(a) Investigating the qualifications, suitability, and fitness of applicants
for positions in the competitive service, positions in the excepted service
where the incumbent can be noncompetitively converted to the competitive
service, career appointments to positions in the Senior Executive Service,

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and any other positions in the excepted service of the executive branch
for which the Director has standard-setting responsibility under Civil Service Rule II.
‘‘(i) The Director may require appointments to be made subject to investigation to enable the Director to determine, after appointment, that
the requirements of law or the Civil Service Rules and Regulations
have been met.
‘‘(ii) The Director may cause positions to be designated based on risk
to determine the appropriate level of investigation, and may prescribe
investigative standards, policies, and procedures.
‘‘(iii) The Director may prescribe standards for reciprocal acceptance
by agencies of investigations and adjudications of suitability and fitness, except to the extent authority to apply additional fitness standards is vested by statute in an agency.’’
(ii) 5 CFR 5.3(a)(1) is revised by striking ‘‘disqualified for Federal employment’’ and inserting in lieu thereof ‘‘disqualified or unsuitable for Federal
employment.’’
(c) Civil Service Rule VI is amended as follows:
(i) 5 CFR 6.3(b) is revised to read as follows:
‘‘(b) To the extent permitted by law and the provisions of this part,
and subject to the suitability and fitness requirements of the applicable
Civil Service Rules and Regulations, appointments and position changes
in the excepted service shall be made in accordance with such regulations
and practices as the head of the agency concerned finds necessary.’’
Sec. 2. Amendment to Executive Order 13488 of January 16, 2009. (a) Section
1(a) of Executive Order 13488 is revised to read as follows:
‘‘Section 1. Policy. (a) When agencies conduct fitness determinations, prior
favorable fitness or suitability determinations shall be granted reciprocal
recognition, to the extent practicable.’’
(b) Section 2 of Executive Order 13488 is revised to read as follows:
‘‘(a) ‘Agency’ means an executive agency as defined in section 105 of
title 5, United States Code, but does not include the Government Accountability Office.
‘‘(b) ‘Contractor employee’ means an individual who performs work for
or on behalf of any agency under a contract and who, in order to perform
the work specified under the contract, will require access to space, information, information technology systems, staff, or other assets of the Federal
Government, and who could, by the nature of his or her access or duties,
adversely affect the integrity or efficiency of the Government. Such contracts, include, but are not limited to:
‘‘(i) personal services contracts;
‘‘(ii) contracts between any non-Federal entity and any agency; and
‘‘(iii) sub-contracts between any non-Federal entity and another nonFederal entity to perform work related to the primary contract with the
agency.

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‘‘(c) ‘Excepted service’ has the meaning provided in section 2103 of title
5, United States Code, but does not include those positions in any element
of the intelligence community as defined in the National Security Act
of 1947, as amended, to the extent they are not otherwise subject to
Office of Personnel Management appointing authorities.
‘‘(d) ‘Fitness’ is the level of character and conduct determined necessary
for an individual to perform work for or on behalf of a Federal agency
as an employee in the excepted service (other than a position subject
to suitability), as a contractor employee, or as a nonappropriated fund
employee.
‘‘(e) ‘Fitness determination’ means a decision by an agency that an individual has or does not have the required level of character and conduct

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necessary to perform work for or on behalf of a Federal agency as an
employee in the excepted service (other than a position subject to suitability), as a contractor employee, or as a nonappropriated fund employee.
A favorable fitness determination is not a decision to appoint or contract
with an individual.
‘‘(f) ‘Nonappropriated fund employee’ means an employee paid from nonappropriated funds of an instrumentality of the United States under the
jurisdiction of the Armed Forces conducted for the comfort, pleasure,
contentment, and mental and physical improvement of personnel of the
Armed Forces as described in section 2105 of title 5, United States Code.
‘‘(g) ‘Position of Public Trust’ has the meaning provided in 5 CFR Part
731.
‘‘(h) ‘Suitability’ has the meaning and coverage provided in 5 CFR Part
731.
(c) Section 3 of Executive Order 13488 is revised to read as follows:
‘‘OPM and Agency Authority.
‘‘(a) Adjudications for determining fitness for contractual or nonappropriated fund employment. While the Office of Personnel Management
establishes the minimum adjudicative criteria for suitability and fitness
determinations for employment in the civil service pursuant to the Civil
Service Rules, the heads of agencies retain the discretion to establish
adjudicative criteria for determining fitness to perform work as a contractor
employee or as a nonappropriated fund employee. Such discretion shall
be exercised with due regard to the regulations and guidance prescribed
by the Office of Personnel Management for the civil service and, for
contractual work, subject to applicable regulations and directives of the
Office of Management and Budget.

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‘‘(b) Investigations for determining fitness for contractual or nonappropriated fund employment. Contractor employee fitness or nonappropriated fund employee fitness is subject to the same position designation requirements and investigative standards, policies, and procedures
as fitness determinations for civil service employees, as prescribed by
the Office of Personnel Management under the Civil Service Rules.
‘‘(c) Reciprocity. Fitness determinations and investigations for fitness determinations for contractor employees and for nonappropriated fund employees are subject to the same reciprocity requirements as those for employment in the civil service, as prescribed by the Office of Personnel Management under the Civil Service Rules.’’
(d) Executive Order 13488 is revised by striking section 4 in its entirety,
and redesignating sections 5 through 8 as sections 4 through 7, respectively.
Sec. 3. Amendments to Executive Order 13467 of June 30, 2008, as amended.
(a) The preamble to Executive Order 13467 is revised to read as follows:
‘‘By the authority vested in me as President by the Constitution and
the laws of the United States of America, including sections 3301, 7103(b),
and 7301 of title 5, United States Code, and in order to strengthen and
ensure a secure, efficient, timely, reciprocal, and aligned system for investigating and determining suitability or fitness for Government employment,
fitness to work as a contractor or a nonappropriated fund employee, eligibility
for access to classified information or to hold a sensitive position, and
authorization to be issued a Federal credential, while providing fair, impartial, and equitable treatment, and protecting individual rights under the
Constitution and laws of the United States, and taking appropriate account
of title III of Public Law 108–458, it is hereby ordered as follows:’’
(b) Section 1.1 of Executive Order 13467 is revised to read as follows:
‘‘Section 1.1. Policy. (a) Executive branch vetting policies and procedures
relating to suitability, contractor or Federal employee fitness, eligibility to
hold a sensitive position, authorization to be issued a Federal credential
for access to federally controlled facilities and information systems, and

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eligibility for access to classified information shall be aligned using consistent
standards to the extent possible, shall provide for reciprocal recognition,
and shall ensure cost-effective, timely, and efficient protection of the national
interest, while providing fair treatment to those upon whom the Federal
Government relies to conduct our Nation’s business and protect national
security.
‘‘(b) The Government’s tools, systems, and processes for conducting these
background investigations and managing sensitive investigative information
should keep pace with technological advancements, regularly integrating
current best practices to better anticipate, detect, and counter malicious
activities, and threats posed by external or internal actors who may seek
to do harm to the Government’s personnel, property, and information.
To help fulfill these responsibilities, there shall be a primary executive
branch investigative service provider whose mission is to provide effective,
efficient, and secure background investigations for the Federal Government.
‘‘(c) Executive branch vetting policies and procedures shall be sustained
by an enhanced risk-management approach that facilitates early detection
of issues by an informed, aware, and responsible Federal workforce; results
in quality decisions enabled by improved vetting capabilities; and advances
Government-wide capabilities through enterprise approaches.

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‘‘(d) The appointment or retention of each covered individual shall be
subject to an investigation. Federal investigative standards established pursuant to this order shall be designed to develop information as to whether
the employment or retention in employment in the Federal service of
the person being investigated is clearly consistent with the interests of
the national security, and the scope of the investigation shall be determined
in the first instance according to the degree of material adverse effect
the occupant of the position sought to be filled could bring about, by
virtue of the nature of the position, on the national security.’’
‘‘(e) Investigative agencies shall control the reports, information, and other
investigative materials that are developed during the vetting process. Recipient departments and agencies may retain and use the received reports,
information, and other investigative material within that recipient for authorized purposes (including, but not limited to, adjudications, hearings
and appeals, continuous evaluation, inspector general functions, counterintelligence, research, and insider threat programs), in compliance with
the Privacy Act of 1974, as amended (section 552a of title 5, United
States Code). Investigative agencies shall ensure that their applicable System of Records Notices include, at a minimum, the authorized uses of
the recipient departments and agencies such as those set forth above.
Recipient departments and agencies shall not make any external releases
of received information, other than to an investigative subject for the
purpose of providing procedural rights or administrative due process;
and shall direct any other requests for external releases of copies of
the reports, information, and other investigative materials to the investigative agency. In the event redisclosure by the recipient agency is required
by compulsory legal process, the recipient agency shall consult with the
investigating agency. The investigative agency shall maintain the reports,
information, and other investigative material in a system of records subject
to the Privacy Act and ensure that any re-disclosure does not violate
statutory restrictions or result in the unauthorized disclosure of: classified
information, information subject to a claim of privilege, or information
that is otherwise lawfully exempt from disclosure. Subject to Security
Executive Agent authorizations consistent with section 3341(e)(5) of title
50, United States Code, the investigative agencies shall make reports,
information, and other investigative material available, as necessary, to
carry out the responsibilities set forth in this order, including but not
limited to, authorized executive branch-sponsored research and initiatives
for enterprise-wide continuous performance improvement of vetting policy
and procedures, as permitted by law.’’
(c) Section 1.2 of Executive Order 13467 is revised to read as follows:

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‘‘Sec. 1.2. Applicability. (a) This order applies to vetting of all covered
individuals as defined in section 1.3(h), except that:
‘‘(i) the provisions regarding eligibility for physical access to federally
controlled facilities and logical access to federally controlled information
systems do not apply to individuals exempted in accordance with guidance
pursuant to the Federal Information Security Management Act (title III
of Public Law 107–347) and Homeland Security Presidential Directive
12 of August 27, 2004; and
‘‘(ii) the qualification standards for enlistment, appointment, and induction into the Armed Forces pursuant to title 10, United States Code,
are unaffected by this order.
‘‘(b) This order also applies to vetting for employees of agencies working
in or for the legislative or judicial branches when the vetting is conducted
by the executive branch.’’
(d) Section 1.3(a) of Executive Order 13467 is revised to read as follows:
‘‘(a) ‘Adjudication’ means the evaluation of pertinent data in a background
investigation, as well as any other available information that is relevant
and reliable, to determine whether a covered individual is:
‘‘(i) suitable for Government employment;
‘‘(ii) eligible for logical and physical access;
‘‘(iii) eligible for access to classified information;
‘‘(iv) eligible to hold a sensitive position; or
‘‘(v) fit to perform work for or on behalf of the Government as a Federal
employee, contractor, or nonappropriated fund employee.’’
(e) Sections 1.3(c) and 1.3(d) of Executive Order 13467 are revised to
read as follows:
‘‘(c) ‘Classified information’ means information that has been determined
pursuant to Executive Order 13526 of December 29, 2009, or a successor
or predecessor order, or the Atomic Energy Act of 1954 (42 U.S.C. 2011
et seq.) to require protection against unauthorized disclosure.
‘‘(d) ‘Continuous evaluation (CE)’ means a vetting process to review the
background of an individual who has been determined to be eligible
for access to classified information or to hold a sensitive position at
any time during the period of eligibility. CE leverages a set of automated
record checks and business rules to assist in the on-going assessment
of an individual’s continued eligibility. CE is intended to complement
continuous vetting efforts.’’
(f) Section 1.3(f) of Executive Order 13467 is deleted.
(g) Sections 1.3(j), (k), (l), and (m) are redesignated as sections 1.3(m),
(n), (o), and (p); sections 1.3(g), (h), and (i) are redesignated as sections
1.3(h), (i), and (j); and section 1.3(e) is redesignated as section 1.3(g).

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(h) New sections 1.3(e) and 1.3(f) are added to Executive Order 13467
to read as follows:
‘‘(e) ‘Continuous performance improvement’ means assessing national policy and operations, adverse events, and emerging trends and technology
throughout the Government’s end-to-end vetting program. It relies on research to generate data-driven decisions and uses outcome-based measurements to adjust policy and operations.
‘‘(f) ‘Continuous vetting’ means reviewing the background of a covered
individual at any time to determine whether that individual continues
to meet applicable requirements.’’
(i) Redesignated section 1.3(h) of Executive Order 13467 is revised to
read as follows:
‘‘(h) ‘Covered individual’ means a person who performs, or who seeks
to perform, work for or on behalf of the executive branch (e.g., Federal
employee, military member, or contractor), or otherwise interacts with

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the executive branch such that the individual must undergo vetting, but
does not include:
‘‘(i) the President or (except to the extent otherwise directed by the
President) employees of the President under section 105 or 107 of title
3, United States Code;
‘‘(ii) the Vice President or (except to the extent otherwise directed
by the Vice President) employees of the Vice President under section
106 of title 3, United States Code, or annual legislative branch appropriations acts; or
‘‘(iii) with respect to background investigations only, duly elected or
appointed governor of a State or territory, or an official who has succeeded
to that office under applicable law in accordance with Executive Order
13549 of August 18, 2010, and its implementing directive.’’
(j) New sections 1.3(k) and 1.3(l) are added to Executive Order 13467
to read as follows:
‘‘(k) ‘Fitness’ means the level of character and conduct determined necessary for an individual to perform work for or on behalf of a Federal
agency as an employee in the excepted service (other than a position
subject to suitability), or as a ‘contractor employee’ or a ‘nonappropriated
fund employee’ as those terms are defined in Executive Order 13488
of January 16, 2009, as amended.
‘‘(l) ‘Investigation’ means the collection and analysis of pertinent facts
and data to support a determination of whether a covered individual
is, and continues to be:
‘‘(i) eligible for access to classified information;
‘‘(ii) eligible to hold a sensitive position;
‘‘(iii) suitable or fit for Federal employment;

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‘‘(iv) fit to perform work for or on behalf of the Federal Government
as a contractor or nonappropriated fund employee; or
‘‘(v) authorized to be issued a Federal credential.’’
(k) Redesignated section 1.3(n) of Executive Order 13467 is revised to
read as follows:
‘‘(n) ‘National Background Investigations Bureau’ (NBIB) means the National Background Investigations Bureau, established within the Office
of Personnel Management under section 1103(a)(3) of title 5, United States
Code, or a successor entity, with responsibility for conducting effective,
efficient, and secure personnel background investigations pursuant to law,
rule, regulation, or Executive Order.’’
(l) Redesignated section 1.3(o) of Executive Order 13467 is revised to
read as follows:
‘‘(o) ‘Sensitive Position’ means any position within or in support of a
department or agency, the occupant of which could bring about, by virtue
of the nature of the position, a material adverse effect on the national
security, regardless of whether the occupant has access to classified information, and regardless of whether the occupant is an employee, a military
service member, or a contractor.
(m) New section 1.3(q) is added to Executive Order 13467 to read as
follows:
‘‘(q) ‘Vetting’ is the process by which covered individuals undergo investigation, evaluation, and adjudication of whether they are, and remain
over time, suitable or fit for Federal employment, eligible to occupy a
sensitive position, eligible for access to classified information, eligible
to serve as a nonappropriated fund employee or a contractor, eligible
to serve in the military, or authorized to be issued a Federal credential.
Vetting includes all steps in the end-to-end process, including determining
need (appropriate position designation), validating need (existence of a
current investigation or adjudication), collecting background information

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via standard forms, investigative activity, adjudication, providing administrative due process or other procedural rights, and ongoing assessments
to ensure that individuals continue to meet the applicable standards for
the position for which they were favorably adjudicated.’’
(n) The title to Part 2 of Executive Order 13467 is revised to read as
follows:
‘‘PART 2—VETTING ENTERPRISE, RECIPROCITY, CONTINUOUS PERFORMANCE IMPROVEMENT, AND GOVERNANCE’’
(o) Section 2.1 of Executive Order 13467 is revised to read as follows:
‘‘Sec. 2.1. Vetting Enterprise. (a) The executive branch-wide vetting enterprise shall use, to the greatest extent practicable, aligned and consistent
vetting policies, procedures, and standards, as determined by the Council
and the Executive Agents. The Executive Agents shall issue guidance to
implement this provision.
‘‘(b) The aligned executive branch-wide vetting enterprise shall employ
modern and consistent standards and methods, enable innovations with
enterprise information technology capabilities and end-to-end automation
to the extent practicable, and ensure that relevant information maintained
by agencies can be accessed and shared rapidly across the executive
branch, while protecting national security, protecting privacy-related information, protecting civil rights and civil liberties, ensuring resulting decisions are in the national interest and in accordance with due process
requirements, and providing the Federal Government with an effective
trusted workforce.
‘‘(c) The investigative and adjudicative standards for fitness shall, to the
extent practicable, be consistent with the standards for suitability. The
Executive Agents shall establish in Federal investigative standards the
elements of the level of investigation necessary for vetting for fitness.
‘‘(d) All covered individuals shall be subject to continuous vetting under
standards (including, but not limited to, the frequency of such vetting)
as determined by the Security Executive Agent or the Suitability and
Credentialing Executive Agent exercising its Suitability Executive Agent
functions, as applicable.
‘‘(e) Vetting shall include a search of records of the Federal Bureau of
Investigation, including a fingerprint-based search, and any other appropriate biometric or database searches not precluded by law.’’
(p) Sections 2.2, 2.3, 2.4, and 2.5 of Executive Order 13467 are redesignated
as sections 2.4, 2.5, 2.6, and 2.7.

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(q) New sections 2.2 and 2.3 are added to Executive Order 13467 to
read as follows:
‘‘Sec. 2.2. Reciprocity. Except as otherwise authorized by law or policy
issued by the applicable Executive Agent, agencies shall accept background
investigations and adjudications conducted by other authorized agencies
unless an agency determines that a particular background investigation or
adjudication does not sufficiently address the standards used by that agency
in determining the fitness of its excepted service employees who cannot
be noncompetitively converted to the competitive service. Except as described
above and except to the extent authority to apply additional requirements
is vested by statute in an agency, an agency may not establish additional
investigative or adjudicative requirements (other than requirements for the
conduct of a polygraph examination consistent with law, directive, or regulation) that exceed existing requirements without the approval of the Suitability
and Credentialing Executive Agent exercising its Suitability Executive Agent
functions or Security Executive Agent, as appropriate. Any additional requirements approved by the appropriate Executive Agent shall be limited to
those that are necessary to address significant needs unique to the agency
involved, to protect national security, or to satisfy a requirement imposed
by law.’’

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‘‘Sec. 2.3. Continuous Performance Improvement. Executive branch vetting
policies, processes, and procedures shall be supported by institutionalized
enterprise-wide continuous performance improvement, which shall align
with and support process improvements.’’
(r) Redesignated section 2.4 of Executive Order 13467 is revised to read
as follows:
‘‘Sec. 2.4. Establishment and Functions of Performance Accountability
Council. (a) There is hereby established a Security, Suitability, and
Credentialing Performance Accountability Council (Council).
‘‘(b) The Deputy Director for Management, Office of Management and
Budget, shall serve as Chair of the Council and shall have authority,
direction, and control over the Council’s functions. Membership on the
Council shall include the Suitability and Credentialing Executive Agent,
the Security Executive Agent, and the Under Secretary of Defense for
Intelligence. These four officials collectively shall constitute ‘the Security,
Suitability, and Credentialing Performance Accountability Council Principals.’ The Director of the National Background Investigations Bureau
shall also serve as a member of the Council. The Chair shall select a
Vice Chair to act in the Chair’s absence. The Chair shall have authority
to designate officials from additional agencies who shall serve as members
of the Council. Council membership shall be limited to Federal Government
employees in leadership positions.
‘‘(c) The Council shall be accountable to the President to achieve, consistent
with this order, the goals of the executive branch vetting enterprise, and
is responsible for driving implementation of reform efforts and enterprise
development, ensuring accountability by agencies, ensuring the Executive
Agents align their respective processes, and sustaining continuous performance improvement and reform momentum.
‘‘(d) The Council shall:
‘‘(i) ensure enterprise-wide alignment of
credentialing, and as appropriate, fitness processes;

suitability,

security,

‘‘(ii) hold agencies accountable for the implementation of suitability,
security, fitness, and credentialing processes and procedures;
‘‘(iii) define requirements for enterprise-wide reciprocity management
information technology, and develop standards for enterprise-wide information technology;
‘‘(iv) work with agencies to implement continuous performance improvement programs, policies, and procedures; establish annual goals and
progress metrics; and prepare annual reports on results;
‘‘(v) ensure and oversee the development of tools and techniques for
enhancing background investigations and adjudications;
‘‘(vi) enable discussion and consensus resolution of differences in processes, policies, and procedures among the Council Principals, and other
agencies as appropriate;
‘‘(vii) share best practices;

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‘‘(viii) advise the Executive Agents on policies affecting the alignment
of investigations and adjudications;
‘‘(ix) work with agencies to develop agency policies and procedures
to enable sharing of vetting information consistent with the law and the
protection of privacy and civil liberties and to the extent necessary for
enterprise-wide efficiency, effectiveness, and security;
‘‘(x) monitor performance to identify and drive enterprise-level process
enhancements, and make recommendations for changes to executive
branch-wide guidance and authorities to resolve overlaps or close policy
gaps where they may exist;

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‘‘(xi) promote data-driven, transparent, and expeditious policy-making
processes; and
‘‘(xii) develop and continuously reevaluate and revise outcome-based
metrics that measure the quality, efficiency and effectiveness of the vetting
enterprise.
‘‘(e) The Chair shall, to further the goals of the vetting enterprise and
to the extent consistent with law, establish subordinate entities, mechanisms, and policies to support and assist in exercising the Council’s authorities and responsibilities, and facilitate, consistent with the executive
branch’s enterprise strategy, adoption of enterprise-wide standards and
solutions to ensure security, quality, reciprocity, efficiency, effectiveness,
and timeliness. The Chair may assign, in whole or in part, to the head
of any agency (solely or jointly) any function within the Council’s authority
or responsibilities pursuant to this order.’’
(s) Redesignated section 2.5 of Executive Order 13467 is revised to read
as follows:
‘‘Sec. 2.5. Establishment, Designation, and Functions of Executive Agents.
(a) There are hereby established a Suitability and Credentialing Executive
Agent and a Security Executive Agent.
‘‘(b) The Director of the Office of Personnel Management shall serve as
the Suitability and Credentialing Executive Agent. With respect to the
Suitability Executive Agent functions, the Director:
‘‘(i) shall, pursuant to sections 1103 and 1104 of title 5, United States
Code, and the Civil Service Rules, be responsible for suitability and fitness
by prescribing suitability standards and minimum standards of fitness
for employment; prescribing position designation requirements with regard
to the risk to the efficiency and integrity of the service; prescribing applicable investigative standards, policies, and procedures for suitability and
fitness; prescribing suitability and fitness reciprocity standards; making
suitability determinations; and taking suitability actions;
‘‘(ii) shall issue regulations, guidance, and standards to fulfill the Director’s responsibilities related to suitability and fitness under Executive Order
13488 of January 16, 2009, as amended;
‘‘(iii) shall promote reciprocal recognition of suitability or fitness determinations among the agencies, including acting as the final authority
to arbitrate and resolve disputes among the agencies involving the reciprocity of investigations and adjudications of suitability and fitness;
‘‘(iv) shall continue to initially approve, and periodically review for
renewal, agencies’ requests to administer polygraphs in connection with
appointment in the competitive service, in consultation with the Security
Executive Agent as appropriate;
‘‘(v) shall make a continuing review of agency programs for suitability
and fitness vetting to determine whether they are being implemented
according to this order;

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‘‘(vi) may issue guidelines and instructions to the heads of agencies
to promote appropriate uniformity, centralization, efficiency, effectiveness,
reciprocity, timeliness, and security in processes relating to determining
suitability or fitness; and
‘‘(vii) shall, pursuant to section 1104 of title 5, United States Code,
prescribe performance standards and a system of oversight for any suitability or fitness function delegated by the Director to the head of another
agency, including uniform and consistent policies and procedures to ensure
the effective, efficient, timely, and secure completion of delegated functions.
‘‘(c) With respect to the Credentialing Executive Agent functions, the
Director of the Office of Personnel Management:

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‘‘(i) shall develop standards for investigations, reinvestigations, and continuous vetting for a covered individual’s eligibility for a personal identity
verification credential permitting logical and physical access to federally
controlled facilities and federally controlled information systems (PIV credential);
‘‘(ii) shall develop adjudicative guidelines for a covered individual’s
eligibility for a PIV credential;
‘‘(iii) shall develop guidelines on reporting and recording determinations
of eligibility for a PIV credential;
‘‘(iv) shall develop standards for unfavorable determinations of eligibility
for a PIV credential, including procedures for denying and revoking the
eligibility for a PIV credential, for reconsideration of unfavorable determinations, and for rendering the PIV credential inoperable;
‘‘(v) shall develop standards and procedures for suspending eligibility
for a PIV credential when there is a reasonable basis to believe there
may be an unacceptable risk pending an inquiry or investigation, including
special standards and procedures for imminent risk;
‘‘(vi) shall be responsible for developing uniform and consistent policies
and procedures to ensure the effective, efficient, timely, and secure completion of investigations and adjudications relating to eligibility for a PIV
credential;
‘‘(vii) may develop guidelines and instructions to the heads of agencies
as necessary to ensure appropriate uniformity, centralization, efficiency,
effectiveness, and timeliness in processes relating to eligibility for a PIV
credential;

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‘‘(viii) shall monitor and make a continuing review of agency programs
for determining eligibility for a PIV credential to determine whether they
are being implemented according to this order; and
‘‘(ix) shall consult to the extent practicable with other agencies with
responsibilities related to PIV credentials to ensure that policies and procedures are consistent with law including:
‘‘(A) the Office of Management and Budget, in exercising its responsibilities under section 11331 of title 40, United States Code, section
3553(a) of title 44, United States Code, division A, sections 1086(b)(2)
and (b)(3) of Public Law 114–92, and Homeland Security Presidential
Directive 12 of August 27, 2004;
‘‘(B) the Department of Homeland Security, in exercising its responsibilities under sections 3553(b), (f), and (g) of title 44, United States
Code;
‘‘(C) the Department of Defense, in exercising its responsibilities under
section 3553(e) of title 44, United States Code, and division A, sections 1086(a)(1)(E), (b)(1), and (b)(2) of Public Law 114–92;
‘‘(D) the Office of the Director of National Intelligence, in exercising
its responsibilities under section 3553(e) of title 44, United States
Code, and division A, section 1086(b)(2) of Public Law 114–92;
‘‘(E) the Department of Commerce and the National Institute of Standards and Technology, in exercising their responsibilities under section
278g–3 of title 15, United States Code, and Homeland Security Presidential Directive 12 of August 27, 2004;
‘‘(F) the General Services Administration, in exercising its responsibilities under division A, section 1086(b)(2) of Public Law 114–92; and
‘‘(G) the Federal Acquisition Regulation agencies, in exercising their
responsibilities under chapter 137 of title 10, section 121(c) of title
40, and section 20113 of title 51, United States Code.
‘‘(d) In fulfilling the Credentialing Executive Agent function of developing
policies and procedures for determining eligibility for a PIV credential
and to protect the national security, the Director of the Office of Personnel
Management shall coordinate with and obtain the concurrence of the

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other Council Principals. Agencies with authority to establish standards
or guidelines or issue instructions related to PIV credentials shall retain
the discretion as to whether to establish policies, guidelines, or instructions
developed by the Credentialing Executive Agent.
‘‘(e) The Director of National Intelligence shall serve as the Security Executive Agent. The Security Executive Agent:
‘‘(i) shall direct the oversight of investigations, reinvestigations, adjudications, and, as applicable, polygraphs for eligibility for access to classified
information or eligibility to hold a sensitive position made by any agency;
‘‘(ii) shall make a continuing review of agencies’ national security background investigation and adjudication programs to determine whether they
are being implemented according to this order;
‘‘(iii) shall be responsible for developing and issuing uniform and consistent policies and procedures to ensure the effective, efficient, timely,
and secure completion of investigations, polygraphs, and adjudications
relating to determinations of eligibility for access to classified information
or eligibility to hold a sensitive position;
‘‘(iv) may issue guidelines and instructions to the heads of agencies
to ensure appropriate uniformity, centralization, efficiency, effectiveness,
timeliness, and security in processes relating to determinations by agencies
of eligibility for access to classified information or eligibility to hold
a sensitive position, to include such matters as investigations, polygraphs,
adjudications, and reciprocity;
‘‘(v) may, if consistent with the national security, authorize exceptions
to or waivers of national security investigative requirements, and may
issue implementing or clarifying guidance as necessary;
‘‘(vi) shall serve as the final authority to designate an agency or agencies,
to the extent that it is not practicable to use the National Background
Investigations Bureau, to conduct investigations of persons who are proposed for access to classified information or for eligibility to hold a sensitive position to ascertain whether such persons satisfy the criteria for
obtaining and retaining access to classified information or eligibility to
hold a sensitive position;
‘‘(vii) shall serve as the final authority to designate an agency or agencies
to determine eligibility for access to classified information or eligibility
to hold a sensitive position in accordance with Executive Order 12968
of August 2, 1995, as amended;
‘‘(viii) shall ensure reciprocal recognition of eligibility for access to
classified information or eligibility to hold a sensitive position among
the agencies, including acting as the final authority to arbitrate and resolve
disputes among the agencies involving the reciprocity of investigations
and adjudications of eligibility; and

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‘‘(ix) may assign, in whole or in part, to the head of any agency (solely
or jointly) any of the functions detailed in (i) through (viii) of this subsection, with the agency’s exercise of such assigned functions to be subject
to the Security Executive Agent’s oversight and with such terms and
conditions (including approval by the Security Executive Agent) as the
Security Executive Agent determines appropriate.
‘‘(f) Nothing in this section shall be construed in a manner that would
limit the authorities of the Director of the Office of Personnel Management,
the Director of National Intelligence, or the Secretary of Defense under
law.’’
(t) Redesignated section 2.6 of Executive Order 13467 is revised to read
as follows:
‘‘Sec. 2.6. Roles and Responsibilities of the National Background Investigations Bureau and the Department of Defense.
‘‘(a) The National Background Investigations Bureau shall:

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‘‘(1) serve as the primary executive branch service provider for background investigations for eligibility for access to classified information;
eligibility to hold a sensitive position; suitability or, for employees in
positions not subject to suitability, fitness for Government employment;
fitness to perform work for or on behalf of the Government as a contractor;
fitness to work as a nonappropriated fund employee, as defined in Executive Order 13488 of January 16, 2009, as amended; and authorization
to be issued a Federal credential for logical and physical access to federally
controlled facilities or information systems;
‘‘(2) provide effective, efficient, and secure personnel background investigations for the Federal Government;
‘‘(3) provide the Council information, to the extent permitted by law,
on matters of performance, timeliness, capacity, information technology
modernization, continuous performance improvement, and other relevant
aspects of NBIB operations;
‘‘(4) be headquartered in or near Washington, District of Columbia;
‘‘(5) have dedicated resources, including but not limited to a senior
privacy and civil liberties official;
‘‘(6) institutionalize interagency collaboration and leverage expertise
across the executive branch;
‘‘(7) continuously improve investigative operations, emphasizing information accuracy and protection, and regularly integrate best practices,
including those identified by subject matter experts from industry, academia, or other relevant sources;
‘‘(8) conduct personnel background investigations in accordance with
uniform and consistent policies, procedures, standards, and requirements
established by the Security Executive Agent and the Suitability and
Credentialing Executive Agent exercising its Suitability Executive Agent
functions; and
‘‘(9) conduct other personnel background investigations as authorized
by law, rule, regulation, or Executive Order.’’

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‘‘(b) The Secretary of Defense shall design, develop, deploy, operate, secure,
defend, and continuously update and modernize, as necessary, vetting
information technology systems that support all background investigation
processes conducted by the National Background Investigations Bureau.
Design and operation of the information technology systems for the National Background Investigations Bureau shall comply with applicable
information technology standards and, to the extent practicable, ensure
security and interoperability with other background investigation information technology systems. The Secretary of Defense shall operate the database in the information technology systems containing appropriate data
relevant to the granting, denial, or revocation of eligibility for access
to classified information or eligibility for a sensitive position pertaining
to military, civilian, or Government contractor personnel, see section
3341(e) of title 50, United States Code, consistent with and following
an explicit delegation from the Director of the Office of Personnel Management pursuant to section 1104 of title 5, United States Code.’’
‘‘(c) Delegations and designations of investigative authority in place on
the date of establishment of the National Background Investigations Bureau
shall remain in effect until amended or revoked. The National Background
Investigations Bureau, through the Director of the Office of Personnel
Management, shall be subject to the oversight of the Security Executive
Agent in the conduct of investigations for eligibility for access to classified
information or to hold a sensitive position; and to the oversight of the
Suitability and Credentialing Executive Agent in the conduct of investigations of suitability or fitness and logical and physical access, as provided
in section 2.5 of this order. The Council shall hold the National Background

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Investigations Bureau accountable for the fulfillment of the responsibilities
set forth in section 2.6(a) of this order.’’
(u) Subsections (b) and (c) of redesignated section 2.7 of Executive Order
13467 are revised to read as follows:
‘‘(b) Heads of agencies shall:
‘‘(i) designate, or cause to be designated, as a ‘sensitive position,’ any
position occupied by a covered individual in which the occupant could
bring about by virtue of the nature of the position, a material adverse
effect on the national security;
‘‘(ii) establish and maintain within their respective agencies, an effective
program to ensure that employment and retention of any covered individual
within the agency is clearly consistent with the interests of national security
and, as applicable, meets standards for eligibility for access to classified
information or to hold a sensitive position, suitability, fitness, or
credentialing, established by the respective Executive Agent;
‘‘(iii) carry out any function assigned to the agency head by the Chair,
and shall assist the Chair, the Council, the Executive Agents, the National
Background Investigations Bureau, and the Department of Defense in carrying out any function under sections 2.4, 2.5, and 2.6 of this order;
‘‘(iv) implement any policy or procedure established pursuant to this
order;
‘‘(v) to the extent permitted by law, make available to the Council,
the Executive Agents, the National Background Investigations Bureau, and
the Department of Defense such information as may be requested to implement this order, including information necessary to implement enterprisewide vetting policies and procedures;
‘‘(vi) except as authorized by section 3341(e)(5) of title 50, United States
Code, promptly furnish, or cause to be promptly furnished, to the Office
of Personnel Management the information deemed by the Executive Agents
to be necessary for purposes of record keeping and reciprocity including,
but not limited to, the date on which a background investigation is initiated,
the date on which the background investigation is closed, and the specific
adjudicative or access decision made. The Executive Agents shall determine
the appropriate timeline pursuant to which this information must be reported to the Office of Personnel Management. The Executive Agents
shall maintain discretion to determine the scope of information needed
for record keeping and reciprocity purposes. The Office of Personnel Management shall regularly provide this information to the Director of National
Intelligence for national security purposes.

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‘‘(vii) ensure that all actions taken under this order take account of
the counterintelligence interests of the United States, as appropriate; and
‘‘(viii) ensure that actions taken under this order are consistent with
the President’s constitutional authority to:
‘‘(A) conduct the foreign affairs of the United States;
‘‘(B) withhold information the disclosure of which could impair the
foreign relations, the national security, the deliberative processes of
the Executive, or the performance of the Executive’s constitutional duties;
‘‘(C) recommend for congressional consideration such measures as the
President may judge necessary or expedient; and
‘‘(D) supervise the unitary executive branch.
‘‘(c) All investigations being conducted by agencies that develop information indicating that an individual may have been subjected to coercion,
influence, or pressure to act contrary to the interests of the national
security, or information that the individual may pose a counterintelligence
or terrorist threat, or as otherwise provided by law, shall be referred
to the Federal Bureau of Investigation for potential investigation, and
may also be referred to other agencies where appropriate.’’

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(v) Section 3 of Executive Order 13467 is revised to read as follows:
‘‘Sec. 3. General Provisions. (a) Executive Order 13381 of June 27, 2005,
as amended, and Executive Order 10450 of April 27, 1953, as amended,
are revoked. By revoking Executive Order 10450 of April 27, 1953, as amended, there is no intent to alter the requirement for an investigation for national
security purposes or the ‘‘clearly consistent with the interest of national
security’’ standard prescribed by that Executive Order for making the determinations referenced in section 2.7(b)(ii). Further, suitability, fitness,
credentialing, and national security eligibility regulations, standards and
guidance issued by, or interagency agreements entered into by, the Council,
the Executive Agents, or any agency pursuant to Executive Order 10450
of April 27, 1953, as amended, shall remain valid until superseded. Nothing
in this order shall:
‘‘(i) supersede, impede, or otherwise affect:
‘‘(A) Executive Order 10577 of November 23, 1954, as amended;
‘‘(B) Executive Order 12333 of December 4, 1981, as amended;
‘‘(C) Executive Order 12829 of January 6, 1993, as amended; or
‘‘(D) Executive Order 13526 of December 29, 2009; or
‘‘(ii) diminish or otherwise affect the denial and revocation procedures
provided to individuals covered by Executive Order 10865 of February
20, 1960, as amended; or
‘‘(iii) be applied in such a way as to affect any administrative proceeding
pending on the date of this order.
‘‘(b) Executive Order 12968 of August 2, 1995, is amended:
‘‘(i) by inserting: ‘Sec. 3.5. Continuous Evaluation. An individual who
has been determined to be eligible for or who currently has access to
classified information shall be subject to continuous evaluation as further
defined by and under standards (including, but not limited to, the frequency of such evaluation) as determined by the Director of National
Intelligence.’; and
‘‘(ii) by striking ‘the Security Policy Board shall make recommendations
to the President through the Assistant to the President for National Security
Affairs’ in section 6.3(a) and inserting in lieu thereof ‘the Director of
National Intelligence shall serve as the final authority’;
‘‘(iii) by striking ‘Security Policy Board’ and inserting in lieu thereof
‘Security Executive Agent’ in each instance;
‘‘(iv) by striking ‘the Board’ in section 1.1(j) and inserting in lieu thereof
‘the Security Executive Agent’; and
‘‘(v) by inserting ‘or appropriate automated procedures’ in section 3.1(b)
after ‘by appropriately trained adjudicative personnel’.
‘‘(c) Provisions of Executive Order 12968 of August 2, 1995, as amended,
that apply to eligibility for access to classified information shall apply
to eligibility to hold any sensitive position regardless of whether that
sensitive position requires access to classified information, subject to the
Security Executive Agent issuing implementing or clarifying guidance regarding requirements for sensitive positions. Nothing in this order shall
supersede, impede, or otherwise affect the remainder of Executive Order
12968 of August 2, 1995, as amended.

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‘‘(d) Nothing in this order shall be construed to impair or otherwise
affect the:
‘‘(i) authority granted by law to a department or agency, or the head
thereof; or
‘‘(ii) functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
‘‘(e) This order shall be implemented consistent with applicable law and
subject to the availability of appropriations.

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‘‘(f) Existing delegations of authority made pursuant to Executive Order
13381 of June 27, 2005, as amended, to any agency relating to granting
eligibility for access to classified information shall remain in effect, subject
to the exercise of authorities pursuant to this order to revise or revoke
such delegation.
‘‘(g) Existing delegations of authority made by the Office of Personnel
Management to any agency relating to suitability or fitness shall remain
in effect, subject to the exercise of authorities to revise or revoke such
delegations.
‘‘(h) If any provision of this order or the application of such provision
is held to be invalid, the remainder of this order shall not be affected.
‘‘(i) This order is not intended to, and does not, create any right or
benefit, substantive or procedural, enforceable at law or in equity by
any party against the United States, its departments, agencies, or entities,
its officers, employees, or agents, or any other person.’’
Sec. 4. General Provisions. (a) This order shall be implemented consistent
with applicable law and subject to the availability of appropriations.
(b) If any provision of this order or the application of such provision
is held to be invalid, the remainder of this order shall not be affected.
(c) This order is not intended to, and does not, create any right or benefit,
substantive or procedural, enforceable at law or in equity by any party
against the United States, its departments, agencies, or entities, its officers,
employees, or agents, or any other person.

THE WHITE HOUSE,
January 17, 2017.
[FR Doc. 2017–01623
Filed 1–19–17; 11:15 am]

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