What is NIST SP 800-171? A Practical Guide for Federal Contractors | Silent Sector

Cybersecurity Ventures projects that global cybercrime damage will hit $10.5 trillion annually by 2025. Federal contractors must take cybersecurity seriously to protect sensitive government data and maintain compliance.

Lauro Chavez, Managing Partner, Silent Sector says "Securing Controlled Unclassified Information (CUI) is beyond doing regulatory obligation. It's a critical step in fortifying the trust and resilience of our nation's digital infrastructure."

If your company handles CUI, compliance with NIST SP 800-171 is mandatory. This framework establishes security requirements for contractors working with the Department of Defense (DoD), NASA, the General Services Administration (GSA), and other federal agencies.

In this guide, you'll learn:

• What NIST SP 800-171 is and why it was created
• Who must comply and what's at stake for non-compliance
• Key security requirements and implementation steps
• Common compliance challenges and how to address them
• How NIST SP 800-171 compares to CMMC

What is NIST SP 800-171?

NIST SP 800-171 is a set of security standards developed by the National Institute of Standards and Technology (NIST) to protect CUI in non-federal systems.

Federal contractors handling CUI must implement these standards to comply with the Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.204-7012. Compliance ensures sensitive information stays secure from cyber threats.

Why Was NIST SP 800-171 Created?

The U.S. government, through NIST, developed NIST SP 800-171 to address growing cybersecurity threats and ensure the protection of CUI in nonfederal systems. 

CUI includes sensitive data created or handled by government agencies or their contractors that, while not classified, still require strict safeguards to prevent unauthorized access and cyber threats.

NIST SP 800-171 was first introduced in June 2015 following Executive Order 13556, which established a unified framework for managing CUI. 

Since its release, NIST has updated the framework multiple times to keep pace with evolving security risks. It outlines specific requirements for how organizations must access, store, and transmit CUI securely. 

Failing to comply can lead to:

• Loss of government contracts
• Legal penalties
• Increased risk of cyberattacks

Who Needs to Comply with NIST SP 800-171?

Any company or organization that processes, stores, or transmits CUI under a federal contract must comply. This includes:

• Defense contractors working with the DoD
• Aerospace and manufacturing companies in government supply chains
• IT service providers handling government data
• Universities and research institutions with federally funded projects
• Consulting firms with access to sensitive government information

Even subcontractors must follow these requirements. If your company works indirectly with federal agencies, you are still responsible for compliance.

Key Requirements of NIST SP 800-171

The framework consists of 110 security controls across 14 categories. These controls ensure CUI remains protected. 

Below is a summary of the four critical areas:

Access Control

Organizations must restrict access to CUI based on job roles and implement safeguards to prevent unauthorized use. 

Key requirements include:

• Role-based access: Only authorized personnel should have access to CUI based on job responsibilities.
  
  
• Multi-factor authentication (MFA): Require MFA for all system logins to add an extra layer of security.
  
  
• Session controls: Automatically log out inactive users and enforce strict password policies.
  
  
• External access restrictions: Limit or block access to CUI from external networks unless necessary and properly secured.
  
  

System & Communications Protection

CUI must be securely transmitted and stored to prevent unauthorized interception or exposure. Requirements include:

• Encryption: Encrypt CUI both in storage and during transmission using industry-standard encryption protocols.
  
  
• Network security: Use firewalls, virtual private networks (VPNs), and secure communication channels to prevent data leaks.
  
  
• Intrusion detection and prevention: Deploy monitoring tools to detect and respond to potential cyber threats in real-time.
  
  
• Secure configurations: Regularly update and harden system configurations to reduce attack surfaces.
  
  

Incident Response

Organizations must have a structured plan to detect, respond to, and recover from security incidents. This includes:

• Incident response plan: Develop a documented process for identifying and addressing security threats.
  
  
• Employee training: Educate staff on recognizing and reporting security incidents to prevent delays in response.
  
  
• Security audits: Perform regular system audits to detect vulnerabilities and verify compliance with security policies.
  
  
• Containment and recovery: Establish clear steps for isolating threats and restoring affected systems.
  
  

Risk Assessment

A proactive approach to identifying and mitigating security risks is essential for compliance. Key requirements include:

• Regular risk assessments: Evaluate cybersecurity risks periodically to identify weaknesses in security controls.
  
  
• Vulnerability management: Scan for and address software, hardware, and network vulnerabilities before they can be exploited.
  
  
• Continuous improvement: Update security practices based on new threats, lessons learned from incidents, and evolving regulations.
  
  

Organizations working with the Department of Defense and other federal agencies must ensure they meet these requirements to safeguard sensitive data and ensure continuity.

Steps to Implement NIST SP 800-171 Compliance

Achieving NIST SP 800-171 Compliance

Achieving NIST SP 800-171 compliance requires a structured approach to ensure CUI remains secure. Organizations must assess their current security posture, implement necessary controls, and continuously monitor their systems to stay compliant.

1. Assess Your Current Security Measures

Start with a gap analysis to identify security weaknesses in your existing infrastructure. Use the NIST Handbook 162 for self-assessment, or work with a cybersecurity consultant who specializes in NIST SP 800-171 compliance.

Small manufacturers can also seek guidance from their state's Manufacturing Extension Partnership (MEP) Center, which provides expertise in compliance preparation.

As you reach completion of your assessment, analyze the results to build a Plan of Action and Milestones (POAM). Your POAM should describe your remediation priorities and corrective actions to address each weakness or gap.

2. Develop a System Security Plan (SSP)

An SSP documents your security controls and how they align with NIST SP 800-171 requirements. It should include:

• A detailed inventory of IT assets and data storage locations.
• Policies for access control, encryption, and incident response.
• A timeline for implementing missing security measures.

3. Implement Necessary Security Controls

Adopt the required security controls to meet compliance standards. Key measures include:

• MFA: Strengthen login security.
• Data encryption: Secure CUI during storage and transmission.
• Access restrictions: Limit access to CUI based on job roles.
• Network protections: Use firewalls, intrusion detection systems, and secure configurations.

4. Conduct Employee Training

Human error is a major cybersecurity risk. Employees must understand security policies and the importance of protecting CUI. Training should cover:

• Recognizing phishing attacks and social engineering tactics.
• Proper data handling procedures.
• Reporting security incidents promptly.

5. Perform Continuous Monitoring & Audits

Compliance is an ongoing process that requires regular testing and updates. Organizations should:

• Conduct regular security audits to verify compliance.
• Monitor systems for threats and respond to potential breaches quickly.
• Update policies and security controls as new threats emerge.

Need Additional Support?

Navigating NIST SP 800-171 compliance can be complex, but you don't have to do it alone. Whether you need help with gap assessments, security control implementation, or ongoing monitoring, working with experienced professionals can streamline the process.

Professional service providers like Silent Sector offer the expertise and support needed to build a complete cybersecurity program that ensures compliance and strengthens your overall security posture.

Common Challenges in Meeting NIST SP 800-171 Compliance

Many contractors struggle with:

• Lack of resources: Small companies may lack dedicated IT teams.
• Complexity of requirements: The 110 security controls can be difficult to implement.
• Evolving cyber threats: Cybercriminals constantly find new attack methods.

Solution: Partner with cybersecurity experts who specialize in NIST SP 800-171 to streamline the compliance process.

NIST SP 800-171 vs. CMMC: What's the Difference?

If you work with the DoD, prepare for CMMC certification in addition to NIST SP 800-171 compliance.

Achieve NIST SP-800-171 Compliance with Silent Sector

Strengthen your cybersecurity and keep your company eligible for government contracts with NIST SP 800-171 compliance.

More than 100 companies rely on Silent Sector to strengthen their security posture and achieve compliance. With 14+ industry certifications and over seven years of delivering exceptional security services, we provide the expertise you need to secure high-value contracts.

Why choose Silent Sector to build a strong, compliant cybersecurity program?

• Simplify complexity: Our experts break down cybersecurity and compliance requirements into clear, actionable steps, eliminating confusion and inefficiency.
• Proven expertise: We've helped companies across industries meet compliance standards like SOC 2, NIST SP 800-171, and HIPAA, ensuring they align with regulatory requirements and company objectives.
• Tailored solutions: Whether you need a cyber risk assessment, penetration testing, or a full-scale security program, we customize our approach to fit your needs.
• Sustainable security: Our Expertise Impact Model™ connects you directly with seasoned professionals, reducing costs while building a long-term, scalable cybersecurity strategy.

Schedule a consultation today to strengthen your cybersecurity, meet compliance requirements, and protect your company from evolving threats.