Should You Expand Into Classified Work?

For small to mid-sized manufacturing companies, the idea of taking on classified work can seem like a step into a new world. It promises bigger contracts, higher revenue, and the chance to work on projects that push your company's capabilities. But it also comes with serious responsibilities—especially around security and compliance. So, is it worth it? Let’s break it down to help you decide whether venturing into classified work makes sense for your business.

What Is Classified Work?

Classified work involves handling information that is sensitive and protected by government regulations. This could mean working on defense projects, aerospace, intelligence, or cybersecurity initiatives that require strict security measures. Typically, these projects are labeled as "Secret," "Top Secret," or "Confidential." Working on such projects can elevate your company's profile and open doors to lucrative government contracts, but it also demands a different level of operational discipline.

The Pros of Going Into Classified Work

1. Access to High-Value Contracts

Government agencies and defense contractors often allocate significant budgets for classified projects. Participating can mean larger orders, longer-term contracts, and a steadier income stream.

2. Enhanced Reputation and Capabilities

Successfully handling classified projects signals that your company meets stringent standards, boosting your reputation in the industry. It may lead to more opportunities beyond government work.

3. Competitive Edge in Your Market

If your competitors haven't entered the classified space, you'll have a unique advantage, positioning your company as a trusted partner for specialized work.

The Challenges and Risks

1. Strict Security and Compliance Requirements

Working with classified information means implementing rigorous physical and cybersecurity measures. This often involves obtaining certifications such as DCSA certification and adhering to standards like NIST 800-171 or the Cybersecurity Maturity Model Certification (CMMC).

2. Upfront Investment in Infrastructure

This isn't a small change. You’ll need secure facilities, specialized training, and possibly new equipment—all of which require investment. For some companies, this can be a significant financial challenge.

3. Operational Complexity

Classified projects typically involve additional layers of paperwork, audits, and oversight. Managing these can strain your administrative resources and require dedicated personnel.

Is Your Business Ready?

Assessing Your Capacity

• Do you already meet security standards or are you willing to invest in becoming compliant?

• Is your current infrastructure capable of supporting controlled access and secure data handling?

• Do you have the management commitment and staff to handle the extra oversight?

Understanding the Commitment

Being part of classified work isn’t a one-time setup; it’s a continuous commitment to security, compliance, and process discipline. Consider whether your company is prepared to adapt operations and maintain these standards long-term.

Steps to Take If You Decide to Pursue Classified Work

1. Secure Leadership Support and Define Your Goals

Ensure your leadership understands the scope and implications. Clarify what you hope to achieve and whether the risks align with your business strategy.

2. Obtain the Necessary Certifications

This involves a thorough security assessment and implementing required measures. Working with a security consultant familiar with government standards can streamline this process.

3. Invest in Infrastructure and Training

Upgrade physical security, establish controlled access procedures, and train staff on handling classified information. This might also include specialized cybersecurity tools.

4. Develop and Document Processes

Standard Operating Procedures (SOPs) for security practices, personnel vetting, and incident responses are essential and often required by clients.

5. Build Relationships with Government Agencies and Prime Contractors

Networking and understanding procurement processes help position your company for success in this niche market.

Final Thoughts

Expanding into classified work can be a valuable avenue for growth, but it’s not a decision to take lightly. It demands investment, discipline, and a commitment to security. Carefully evaluate whether your company has the capacity, resources, and willingness to handle the responsibilities. If done right, it can open doors to a specialized market that rewards quality, compliance, and trust.

For more detailed guidance, consider consulting resources like the Department of Homeland Security or visiting the Cybersecurity Maturity Model Certification (CMMC) website. These provide standards and best practices to help your company prepare for classified work.

Remember: Moving into classified work isn’t just about winning contracts. It’s about committing to a higher standard of security—one that protects your company, your clients, and national interests.