Knowledge
Security Clearance Overview
A security clearance is one of the hottest commodities a current or
potential federal contractor can have. It's also one of the most
confusing for employees, who are often handed a set of forms with no
context or additional information.
The U.S. government uses clearances to counter threats that may stem
from foreign intelligence services, organizations or people who wish
to overthrow the government and individuals who are dishonest or may
be susceptible to pressure or improper influence.

Who Must Have a Security Clearance?
Anyone in a position that requires access to classified information
must have a clearance.
Clearances are generally granted to a particular level of information,
so a job that requires access to confidential information would require
a confidential clearance.
Access to classified information requires two elements: the appropriate
level of security clearance and a "need to know." Just having a
clearance does not guarantee access to all classified information.
Clearances and Jobs
The federal government does not issue clearances directly to
individuals. Clearances are tied to positions, so a person who wants a
clearance must apply for contractor or federal jobs that require clearances. Some positions within the military also carry clearances.
Cleared positions -- positions with the federal government and its
contractors that require access to classified data -- often come with
higher salaries than non-cleared positions.
Reciprocal Clearances and Clearance Transfers
The U.S. Department of Defense (DOD) is the largest
grantor of security clearances, but many other agencies operate their
own security programs. Clearances granted by these agencies generally may not
transfer anywhere else. If two agencies allow clearances to be
transferred between them, this flexibility, known as reciprocity, can save both contractors and the government time and money by preventing duplicate investigations.
Wikipedia
states that "Investigations conducted by one federal agency are no
longer supposed to be duplicated by another federal agency when those
investigations are current within 5 years and meet the scope and
standards for the level of clearance required." However, some federal
agencies do not recognize others' equivalent clearances and will insist
on another full investigation.
Active and Inactive Clearances
A person either has a clearance or does not; there are no
in-between states. "Current" and "active" are synonymous in this
context, as are "inactive" and "expired."
A clearance becomes inactive when the position no longer requires it or
the person holding it leaves the position. Clearances are fairly easy
to reactivate within 24 months (unless the five-, 10- or 15-year
reinvestigation would fall in that period). After that, reactivating a
clearance can be difficult. Take a look at this GovCentral
article for ways to preserve and reactivate security clearances.
Clearance Controversies
In the wake of the 2010 WikiLeaks release of more than 250,000 diplomatic cables, the "largest unauthorized release of contemporary classified information in history," the President's Intelligence Advisory Board began a review of the executive branch's handling of classified information. According to NextGov, "The board is tasked with ensuring that agencies have a proper understanding of the requirements in safeguarding classified information, getting a general sense of government officials' attitudes on leaks, and assessing how the government handles sensitive information and documents."
More on Security Clearances
Check out these other articles in the GovWin Knowledge Library.
Types of Security Clearances
How Security Clearance Investigations Work
Obtaining a Facility Clearance
Links & Resources
"Are You Eligible for a Security Clearance?"
http://govcentral.monster.com/videos/quizzes/57-are-you-eligible-for-a-security-clearance
Military Security Clearances
http://usmilitary.about.com/cs/generalinfo/a/security.htm
Security Clearance FAQ (PDF)
http://www.clearancejobs.com/security_clearance_faq.pdf
Security Clearances Can Pay Off
http://www.washingtonpost.com/wp-dyn/content/article/2006/02/08/AR2006020802348.html
This article is part of GovWin.com's jobs and staffing resources. Check out the GovWin staffing section, ask the experts a question or follow @HireGovCon on Twitter for the latest govcon job listings.
Lindley Ashline is the Web editor at GovWin.com, the network that helps government contractors win new business every day. She can be reached at lindleyashline@deltek.com, or you can follow her on Twitter @lindleyashline.