Cleared Defense Contractor (CDC) includes which entities?

• A. Only DoD personnel
• B. All industrial or commercial contractors, licensees, certificate holders, or grantees of an agency, including all subcontractors; a personal services contractor; or any other category of person who acts for or on behalf of an agency and are granted Personnel Security Clearances or are being processed for PCLs.
• C. Only contractors with Facility Clearances
• D. Only individuals with a security clearance from a CSA

Answer: (B)

The concept being tested is who qualifies as a Cleared Defense Contractor. A CDC isn’t limited to DoD personnel; it covers any entity or person acting for or on behalf of an agency who has a Personnel Security Clearance or is being processed for one. That includes industrial or commercial contractors, licensees, certificate holders, or grantees of an agency, and it must also include all subcontractors; a personal services contractor; or any other category of person performing work for an agency under the clearance process. The distinction is between the organization’s status (such as a Facility Clearance) and the individual’s clearance status; someone can be part of a cleared organization or be in the midst of obtaining a PCL, which still makes them a CDC.

The narrower options don’t fit because they exclude parts of this broad scope: limiting to DoD personnel ignores the many contractors and others who work under agency contracts; limiting to contractors with Facility Clearances focuses only on organizational clearance and misses individuals who have or are pursuing PCLs; and limiting to individuals with a clearance from a CSA omits those who are being processed for PCLs or who operate under a facility or agency clearance.