Government contractors must now protect sensitive data that isn't secret
What happened
The US government is changing its buying rules to make contractors protect sensitive, unclassified information. This means companies doing business with the Defense Department, NASA, and other agencies will need new systems to handle this data.
Why it matters
The government has long struggled with how to protect sensitive information that doesn't meet the bar for classification. This rule creates a new category for that data. Companies that want to work with the Defense Department, NASA, and other agencies must now build new systems to protect this "controlled unclassified information." This changes their costs and their liability.
The signal
Watch for how many contractors report new compliance costs or changes to their data handling systems in the next year.