Piloting Supply Chain Risk Management Practices for Federal Information Systems



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Piloting Supply Chain Risk Management Practices for Federal Information Systems Marianne Swanson Computer Security Division Information Technology Laboratory

Agenda Terms and Background Implementing Supply Chain Risk Management Supply Chain Risk Management Practices Contact Information 2

Terms Supply Chain Set of organizations, people, activities, information, and resources for creating and moving a product/elements or service (including sub-elements) from suppliers through to an organization's customers. Element COTS or GOTS software, hardware and firmware and is synonymous with components, devices, products, systems, and materials. 3

Terms (continued) Supplier An organization that produces elements and provides them to a customer or an integrator to be integrated into the overall system; it is synonymous with vendor and manufacturer. It also applies to maintenance/disposal service providers. Integrator A third party organization that specializes in combining products/elements of several suppliers to produce elements (information systems.) 4

Background Comprehensive National Cybersecurity Initiative11: Develop Multi-Pronged Approach for Global Supply Chain Risk Management (SCRM) Provide US Government with robust toolset of supply chain methods and techniques Multi-tiered Approach: Cost effective procurement related strategies Industry input into supply chain practices and development of international standards Ability to share supply chain threat information 5

Lifecycle Processes and Standards Working Group Develop guidance for civilian agencies on implementing supply chain risk mitigation strategies. Test existing and proposed guidance during pilots in FY09 and FY10 Collaborate with organizations and industry on developing supply chain standards and practices 6

Guidance Draft NIST Inter-Agency Report (NIST IR) 7622 Piloting Supply Chain Risk Management Practices for Federal Information Systems First Public Draft June, 2010 Final January, 2011 Future NIST Special Publication First Public Draft June, 2011 7

Supply Chain Pilots Department of Defense Department of Homeland Security Piloting of guidance in NISTIR 8

Collaboration ISO CS-1 Global Supply Chain Risk Management Ad Hoc Meetings IT and Telecom Sector Coordinating Councils (SCCs) and Government Coordinating Councils GCCs) 9

Implementing Supply Chain Risk Management Prerequisites for Successful SCRM Implementation Establish a Supply Chain Risk Management Capability (SCRMC) Roles and Responsibilities SCRMC Procurement Process 10

Prerequisites for Successful SCRM Implementation Integrate information system security requirements from inception Ensure funding for information security and SCRM Follow consistent, well-documented repeatable system engineering and acquisition processes Proper oversight of suppliers Actively manage suppliers through Service Level Agreements/contracts Fully implement the NIST 800-53 security controls 11

Establish a SCRMC Ad-hoc or formal team Develop policy and procedures When team comes together Who performs requirement analysis, makes risk decisions, prepares procurement related documents, and specifies any specific training requirements. 12

13

SCRMC Implementation 14

Step 1: Determine Supply Chain Risk Threshold FIPS 199 High Impact System NIST Special Publication 800-53 Rev. 3 Security Control: SA-12 Supply Chain Protection 15

Step 2: Develop Requirements Identify critical elements, processes, systems, and information across the program Determine appropriate level of risk Review all data gathered during the pre-solicitation Obtain any additional information Consider a procurement strategy Develop a Statement of Work (SOW) 16

Statement of Work Detailed description of the technical, security, and SCRM requirements Performance measures Evaluation criteria Measurement thresholds 17

Step 3: Identify Potential Suppliers Conduct a market analysis Post a sources sought notification Gather information from open-sources 18

Open Sources Central Contractor Registry (CCR) Commercial & Government Entity (CAGE) Dunn & Bradstreet Business Identification Number Cross-reference (BINCS) 19

Step 4: Coordinate Acquisition Plan and Contract Execution Develop an Acquisition Plan List of potential sources of suppliers Description of how competition will be sought Description of various contacting considerations Strategies for mitigating supply chain risk Disclose any legal issues Perform technical review Select supplier 20

Step 5: Perform Continuous Monitoring Record lessons learned Monitor and periodically reevaluate changes in risk, suppliers, operational environment, and usage. Replacement components and maintenance should be reviewed for supply chain risk 21

Supply Chain Practices 21 varying practices Acquirer: Programmatic and validation activities Supplier or integrator: General, technical and validation requirements Topic areas include: Procurement Design/Development Testing Operational Personnel 22

Procurement Maximize acquirer s visibility into Integrators and Suppliers Protect confidentiality of element uses 23

Design/Development Incorporate supply chain assurance in requirements Select trustworthy elements Enable diversity Identify and protect critical processes and elements Use defensive design 24

Design/Development (continued) Protect the supply chain environment Configure elements to limit access and exposure Harden supply chain delivery mechanisms 25

Testing Manual review Static analysis Dynamic analysis Penetration testing 26

Operational Protect/monitor/audit operational systems Formalize service/maintenance Configuration Management Negotiate requirement changes Manage supply chain vulnerabilities Reduce supply chain risks during software updates and patches Supply chain incident response Reduce supply chain risks during disposal 27

Personnel Personnel considerations in the supply chain Promote awareness, educate and train personnel on supply chain risk 28

Contact Information Marianne Swanson, Senior Advisor for Information System Security marianne.swanson@nist.gov Civilian Pilots: DoD Pilots: Standards: Kurt Seidling, Program Manager, DHS kurt.seidling@dhs.gov Annette Mirsky, Pilot Program Manager, OASD NII CI&IA annette.mirsky@osd.mil Don Davidson, Senior Advisor Standards OASD NII CI&IA don.davidson@osd.mil 29