(b) Adequate security — NIST SP 800-171
Paragraph (b) requires "adequate security" on all covered contractor information systems — for covered contractor information systems not operated on behalf of the Government, paragraph (b)(2) specifies the security requirements of NIST SP 800-171 Rev. 2. When a cloud service provider stores, processes or transmits covered defense information, paragraph (b)(2)(ii)(D) requires that service to meet the FedRAMP Moderate baseline (or equivalent). See FedRAMP vs CMMC for what that means in practice.
(c) Rapid incident reporting — 72 hours
Paragraph (a) defines "rapidly report" as within 72 hours of discovery of any cyber incident. Under paragraph (c)(1), the report is made to DoD via DIBNet (dibnet.dod.mil). Paragraph (c)(3) requires a DoD-approved medium assurance certificate to report, which takes time to obtain — get one before you need it, not during an incident.
(d) Malicious software
Paragraph (d) requires submitting malicious software discovered in connection with a reported incident to the DoD Cyber Crime Center (DC3), in accordance with instructions provided by DC3 or the contracting officer. Do not send malicious software to the contracting officer.
(e) Media preservation — 90 days
Paragraph (e) requires preserving and protecting images of all known affected information systems and all relevant monitoring or packet capture data for at least 90 days from submission of the cyber incident report, so DoD can assess damage.
(f) Access for forensic analysis
Paragraph (f) requires providing DoD access to additional information or equipment necessary for forensic analysis of the incident.
(m) Flowdown to subcontractors
Paragraph (m) requires flowing the clause down to subcontracts where the subcontractor will handle covered defense information — including the incident-reporting obligation. Paragraph (m)(2) also requires subcontractors to report incidents directly to DoD and give the prime the incident report number. See the subcontractor flowdown auditor.
7012 vs CMMC
7012 is the obligation; CMMC is the verification. 7012 has required NIST SP 800-171 since 2017 — CMMC (under DFARS 252.204-7021) adds the assessment and affirmation that prove you actually implemented it. The comparison is in DFARS 7012 vs 7021, and the current rollout state is on CMMC status.