Identifying CUI and FCI in Defense-Related Manufacturing: What You Need to Know

As the defense industry sharpens its focus on cybersecurity and data protection, manufacturers and suppliers—especially those involved in precision grinding, machining, and fabrication—must understand how to handle Controlled Unclassified Information (CUI) and Federal Contract Information (FCI) properly.

At AB Precision Grinding Co., we are actively working toward CMMC Level 1 compliance by the end of Q2, and Level 2 compliance by the end of the year. A key part of that effort is understanding how to identify, manage, and protect CUI and FCI in our everyday operations.

This article breaks down what CUI and FCI are, how to identify them, and what manufacturers need to do when handling defense-related contracts and technical information.

What Is Federal Contract Information (FCI)?

FCI is information provided by or generated for the U.S. Government under a contract that is not intended for public release. It generally includes:

• Purchase orders and contracts for DoD or federal work

• Billing information

• Shipping schedules

• Internal communications with the DoD

• Basic performance specs

  
  

However, FCI does not include publicly available information or commercial product details.

Key Characteristics of FCI:

• Typically appears in contract documents, RFQs, and POs

• Can include production schedules, logistics, or material requirements

• Must be protected under CMMC Level 1

  
  

What Is Controlled Unclassified Information (CUI)?

CUI is a category of information that the government has determined must be protected but does not rise to the level of classified. CUI can include:

• Engineering drawings

• Technical data or specs

• Test reports

• Tolerances and finishing requirements

• Proprietary information related to national defense

  
  

CUI is far more sensitive than FCI and must be protected under CMMC Level 2, which requires third-party certification and strict access control.

Common Examples of CUI in Manufacturing:

• Blueprints or 3D CAD files for defense components

• Markings like “CUI,” “Export Controlled,” or ITAR-restricted data

• Specifications with tight tolerances used in aerospace or defense grinding

• Vendor-submitted data with proprietary technical information

• First Article Inspection reports submitted under defense contracts

  
  

How to Identify CUI and FCI in Your Workflow

Recognizing whether a document or dataset qualifies as CUI or FCI is the first step in protecting it.

Here’s how to spot the difference in a precision grinding environment:

Document Type	Likely FCI	Likely CUI
DoD purchase orders	✅	❌
Blueprints for defense parts	❌	✅
Technical specs from the customer	❌	✅
Production schedules	✅	❌
Test results / FAI Reports	❌	✅
Communication with DoD buyers	✅	❌
Email with attached engineering files	❌	✅

If you’re unsure, default to caution and treat the document as CUI until clarified by the customer.

What Should You Do When Handling CUI or FCI?

At AB Precision Grinding Co., we are building internal systems to ensure we handle all data responsibly, based on its classification. Here's what manufacturers should do:

For FCI (CMMC Level 1):

• Use strong passwords and multi-factor authentication

• Limit access to authorized personnel

• Keep contract documents stored securely (digital or physical)

• Perform annual self-assessment and submit results to SPRS

  
  

For CUI (CMMC Level 2):

• Encrypt data at rest and in transit

• Implement access controls based on roles

• Use secure file transfer for engineering data

• Train employees to recognize and protect CUI

• Develop an incident response plan

• Perform third-party assessments for certification

  
  

How AB Precision Grinding Co. Is Preparing

We’re actively preparing for full CMMC compliance by:

• Classifying all incoming defense-related documentation

• Separating internal workflows for FCI and CUI

• Implementing multi-factor authentication and encrypted storage

• Training employees on data handling best practices

• Planning our CMMC Level 2 certification audit by year-end

  
  

Whether we're working on defense-critical components or precision-machined parts for aerospace applications, we approach data protection with the same discipline and attention to detail that defines our grinding work.

Conclusion

As defense cybersecurity standards evolve, understanding and properly handling CUI and FCI is not just a compliance issue—it’s a responsibility. Precision grinding and manufacturing operations must have systems in place to identify sensitive information, protect it, and train teams accordingly.

At AB Precision Grinding Co., we’re building our cybersecurity strategy in alignment with CMMC Level 1 and Level 2 requirements, and that starts with knowing how to spot CUI and FCI in the work we do.

Not sure if your project involves CUI or FCI? 

We’ll help you evaluate your documentation and set up the right protections from day one.

Contact AB Precision Grinding Co. to learn more about how we protect sensitive defense-related data while delivering unmatched grinding precision.