Suspension of Security Clearances and Evaluation of Government Contracts
February 25, 2025
Action Summary
- Directive Scope: Suspension of active security clearances for Peter Koski and all Covington & Burling LLP personnel involved with former Special Counsel Jack Smith, pending review of their involvement in “weaponizing the judicial process.”
- Agency Coordination: The Attorney General along with heads of State, Defense, Energy, National Intelligence, CIA, OMB, and OPM are directed to take immediate action in accordance with applicable law.
- Contract Evaluations & Termination: Agencies are instructed to review all government contracts with Covington & Burling LLP; the Director of OMB is to issue further instructions, including aligning funding decisions with Administration priorities, particularly those set out in Executive Order 14147 (January 20, 2025).
- Interagency Communication: If any covered individuals hold clearances from agencies not directly addressed, the Director of the Office of Personnel Management must forward this memorandum to the relevant agency for compliance.
- Legal Disclaimer: The memorandum does not create any enforceable rights or benefits against the United States or its agencies.
Risks & Considerations
- The suspension of security clearances and evaluation of government contracts with Covington & Burling LLP could lead to increased scrutiny of legal and consulting firms associated with government work. This may impact Vanderbilt University if it engages with similar firms for legal or consulting services.
- There is a potential risk of reputational damage for institutions associated with entities under investigation for the “weaponization of the judicial process.” Vanderbilt should assess any indirect connections to ensure its reputation remains intact.
- The directive to review government contracts may lead to a broader examination of contractual relationships, which could affect any existing or future contracts Vanderbilt has with federal agencies.
- Vanderbilt may need to consider the implications of this memorandum on its legal and compliance strategies, particularly if similar actions are taken against other firms or entities with which the university is affiliated.
Impacted Programs
- Vanderbilt’s Legal Department may need to review its current and potential future engagements with law firms to ensure compliance with any new federal guidelines or scrutiny.
- The Office of Sponsored Programs might need to reassess its processes for managing government contracts to align with any new federal expectations or requirements.
- Vanderbilt’s Government Relations Office could play a key role in monitoring developments related to this memorandum and advising university leadership on potential impacts.
Financial Impact
- While the direct financial impact on Vanderbilt University may be limited, there could be indirect effects if the university’s partners or contractors are affected by similar government actions.
- Vanderbilt may need to allocate resources to ensure compliance with any new federal guidelines resulting from this memorandum, potentially impacting budget allocations for other initiatives.
- There could be opportunities for Vanderbilt to engage in research or policy analysis related to government contracting and legal compliance, potentially attracting new funding or partnerships.
Relevance Score: 3 (The memorandum presents moderate risks involving compliance or ethics that Vanderbilt should monitor closely.)
Key Actions
- Vanderbilt’s Legal and Compliance Office should review any existing or potential engagements with Covington & Burling LLP to ensure compliance with the new directives. This will help mitigate any risks associated with the suspension of security clearances and the evaluation of government contracts.
- The Office of Federal Relations should monitor developments related to the suspension of security clearances and government contract evaluations to assess any potential impacts on federal funding or partnerships that may involve Vanderbilt University.
- Vanderbilt’s Research Administration should evaluate any collaborations or projects that may be indirectly affected by changes in government contract evaluations, ensuring that all research activities remain compliant with federal guidelines.
Opportunities
- The executive action provides an opportunity for Vanderbilt’s Law School to engage in research and analysis of the legal implications of security clearance suspensions and government contract evaluations. This could enhance the university’s expertise and influence in legal and governmental affairs.
- Vanderbilt can leverage its expertise in public policy to contribute to discussions on the implications of the executive order, potentially positioning itself as a thought leader in the area of government accountability and transparency.
Relevance Score: 3 (Some adjustments are needed to processes or procedures to ensure compliance and capitalize on research opportunities.)
Timeline for Implementation
Immediate action required as the directive instructs agencies to “immediately take steps” to suspend security clearances and review government contracts.
Relevance Score: 5
Impacted Government Organizations
- Secretary of State: Directed to oversee actions related to the suspension of security clearances in cases involving sensitive legal engagements.
- Secretary of Defense: Tasked with ensuring that military and defense-related security clearances and contracts are re-evaluated in light of the directive.
- Attorney General: Charged with suspending specific security clearances and terminating engagements with Covington & Burling LLP, as well as coordinating with other department heads on review actions.
- Secretary of Energy: Included in the directive, impacting how energy-related departments handle security clearance issues and contract evaluations.
- Director of the Office of Management and Budget (OMB): Responsible for issuing memoranda to all agencies for reviewing government contracts and ensuring compliance with the administration’s priorities.
- Director of National Intelligence: Involved in the oversight of security clearance suspensions that affect intelligence operations and related contracts.
- Director of the Central Intelligence Agency (CIA): Governed by the directive in terms of reviewing security clearances and evaluating legal engagements connected to national security interests.
- Director of the Office of Personnel Management (OPM): Tasked with providing the memorandum to any clearance-granting agency not originally included, ensuring that all relevant agencies take review actions.
Relevance Score: 3 (Six to ten federal agencies are impacted by this executive action.)
Responsible Officials
- Secretary of State – Responsible for ensuring directives are communicated to the respective Department of State offices.
- Secretary of Defense – Tasked with overseeing the suspension of security clearances and ensuring compliance within the Department of Defense.
- Attorney General – Charged with directing all relevant agencies to suspend security clearances and terminate engagements with Covington & Burling LLP, as well as coordinating further legal steps.
- Secretary of Energy – Required to implement these directives within the Department of Energy.
- Director of the Office of Management and Budget – Instructed to issue a memorandum to all agencies to review Government contracts with Covington & Burling LLP and align funding decisions with administration goals.
- Director of National Intelligence – Expected to act on these directives within the intelligence community.
- Director of the Central Intelligence Agency – Also responsible for ensuring that security clearance suspensions and related reviews are observed within the CIA.
- Director of the Office of Personnel Management – Directed to forward the memorandum to any agency that may have granted security clearances to the covered individuals.
Relevance Score: 5 (Directives affect top-level Cabinet officials and high-ranking agency heads with significant executive responsibilities).