Hard Brexit Impact Analysis

Page 80 of 106 Category If no agreement is reached: Consequence EU Document Trade Industrial security PERSONNEL SECURITY CLEARANCE (PSC): EU classified contracts or classified grant agreements shall include provisions indicating that staff of a contractor, subcontractor or beneficiary who, for the performance of the classified contract, subcontract or grant agreement, require access to EU classified information, shall be security cleared at the relevant level by the NSA, DSA or any other competent authority of the Member State in which the contractor, subcontractor, or beneficiary is registered. As of the withdrawal date, the personnel security clearances issued by the United Kingdom NSA, DSA or other competent security authority are no longer valid for the purposes of Commission Decision (EU, Euratom) 2015/444. This could, under the terms of the classified contract/grant agreement that was signed, constitute a ground for termination, unless the contractor/ beneficiary has taken appropriate remedial measures. Irish citizens with a PSC issued in the UK will have to apply for a PSC in one of the EU 27 countries. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF INDUSTRIAL SECURITY Trade Industrial security SUBCONTRACTS: No subcontract involving access to EU classified information may be awarded to subcontractors registered in a third country, unless there is a particular regulatory framework for the security of information. Non-compliance with this obligation could, under the terms of the classified contract/grant agreement that was signed, constitute a ground for termination, unless the contractor/beneficiary has taken appropriate remedial measures (such as ensuring that the subcontract is changed to a subcontractor with security clearance issued by an EU 27 Member State or third country with a security agreement). UK subcontractors will not be allowed access to EU classified information unless there is a third country agreement between the UK and the EU. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF INDUSTRIAL SECURITY Trade Industrial security Withdrawal date ongoing procedures Subcontracts: Where an award procedure is ongoing on the withdrawal date, tenderers or applicants with subcontracts that do not comply with the security requirements will be rejected. Where applications or tenders for EU funded work include subcontractors who are not security certified the bids will be automatically rejected as invalid. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF INDUSTRIAL SECURITY