If you're a government contractor or work with federal agencies, you've probably encountered the phrase "information may be CUI" and wondered what it actually means for your organization. This designation isn't just jargon, it's a critical compliance marker that determines how you must handle, store, and protect certain data.

Information may be CUI means your data could fall under the Controlled Unclassified Information framework, requiring specific safeguarding and handling procedures. This applies to contractors, subcontractors, and organizations that create, receive, or process information for or on behalf of the government.

Understanding CUI identification saves you from costly compliance violations and helps you build the right security controls from day one. We'll walk you through the legal foundation and CUI definition that drives these requirements, show you practical methods for identifying CUI in your systems using the CUI framework, and cover the essential CUI handling requirements and marking guidelines you need to follow. You'll also learn about common CUI identification mistakes that trip up even experienced organizations.By the end, you'll know exactly when that "may be CUI" warning applies to your data and what steps you need to take next.

Identifying CUI in Your Organization Using the CUI Framework

The Three-Step CUI Identification Process (Created, Used, Identified)

When you're working to identify Controlled Unclassified Information within your organization, you need to follow a systematic three-step process that ensures comprehensive coverage. The first step involves examining information as it's created within your systems and workflows. You must evaluate whether newly generated documents, reports, or data contain sensitive information that could impact government operations or national security if disclosed inappropriately.

The second step focuses on information that's actively used in your daily operations. This includes reviewing existing documents, databases, and communications that flow through your organization. You should assess whether this information, even if not originally classified as CUI, now meets the criteria for controlled handling due to its current application or context.

The final step requires formal identification and documentation of CUI status. During this phase, you must make definitive determinations about which information qualifies as CUI and ensure proper categorization according to established guidelines.

Government Decision Tree for Determining CUI Status

Now that we've covered the basic identification process, you need to understand how government agencies approach CUI determination through structured decision-making frameworks. The government utilizes a standardized decision tree that helps you evaluate information systematically and consistently across different scenarios.

Your organization should implement similar decision-making processes that align with federal standards. This approach ensures that you're applying the same criteria and methodologies that government agencies use when making CUI determinations, reducing the likelihood of misclassification and compliance issues.

Using the CUI Registry and Category Classifications

With this systematic approach in mind, you must familiarize yourself with the CUI Registry, which serves as the authoritative source for CUI categories and handling requirements. The registry provides detailed classifications that help you determine the appropriate level of protection for different types of information.

You should regularly consult the CUI Registry when making identification decisions, as it contains the most current category definitions and requirements. This resource helps ensure that your CUI identification process remains aligned with federal standards and regulatory expectations.

Understanding the Difference Between CUI Basic and CUI Specified

Previously, you may have encountered references to different levels of CUI protection, and it's crucial to understand these distinctions. CUI Basic represents the foundational level of protection that applies to most Controlled Unclassified Information. When you identify information as CUI Basic, you must apply standard safeguarding and dissemination controls as outlined in federal guidelines.

CUI Specified, on the other hand, requires additional protective measures beyond the basic requirements. You'll encounter CUI Specified when dealing with information that has specific statutory, regulatory, or policy requirements that mandate enhanced protection. Your organization must implement supplementary controls and handling procedures for CUI Specified information to ensure full compliance with these heightened requirements.

Practical Methods for Locating CUI in Your Systems

Leveraging Microsoft 365 and Purview for CUI Discovery

Microsoft Purview serves as a valuable tool for defense contractors looking to identify Controlled Unclassified Information (CUI) within their Microsoft 365 environment to achieve CMMC 2.0 compliance. The platform helps Organizations Seeking Certification (OSC) effectively locate CUI across Exchange, SharePoint, OneDrive, and Teams environments.

However, you need to understand the limitations when using Microsoft Purview for CUI detection. The platform relies on sensitive information types (SITs), trainable classifiers, and regular expressions that aren't specifically optimized for CUI identification. This approach can result in high false positive rates, which may artificially inflate your compliance scope and increase costs.

Microsoft Purview also imposes significant file size restrictions that can impact your CUI detection efforts. The platform has a 150 MB per file limit for eDiscovery workflows and a 20 MB sampling limit for deep document scanning. These limitations are particularly problematic in defense environments where large technical files like AutoCAD drawings are common. Additionally, Purview has limited support for CAD files (DWG) and Visio documents, basic image support without deep OCR capabilities, and generally unsupported ODF formats.

The Data Map feature supports up to 1 TB of metadata but struggles with large data estates exceeding 100 TB due to a 7-day scan duration limit, which can slow down your discovery process and increase operational costs.

Mapping Internal Processes and Data Flows Outside Microsoft 365

Now that we've covered Microsoft 365 capabilities, you'll need to address the critical challenge of locating CUI data outside your Microsoft 365 environment. This process requires you to systematically map all your internal processes and data flows to identify potential areas where CUI might reside beyond your cloud platform.

You should start by documenting every system, application, and data repository in your organization. This includes on-premises file servers, network-attached storage devices, legacy applications, databases, and any hybrid cloud environments. Your mapping process should also account for systems that process, transmit, view, or print CUI, as these interactions can bring additional components into your compliance scope.

Consider that printing CUI on a local printer brings the printer, its network, and connected endpoint devices into scope for CMMC compliance. This interconnectedness means your data flow mapping must be comprehensive to avoid missing critical CUI locations.

For organizations with complex IT environments spanning on-premises, cloud, and hybrid systems, specialized CUI scoping projects can provide the necessary expertise to guide you through this identification process. These solutions offer platform-agnostic flexibility to detect CUI across diverse data estates, ensuring you don't miss critical information that could lead to compliance gaps.

Walkthrough of CUI Categorization Using NARA's Website

With this mapping complete, you can now learn to categorize potential CUI using the National Archives and Records Administration (NARA) website. Visit the CUI website and click on "Category list" to access the comprehensive CUI framework.

You'll find the "Organizational Index Groupings" column containing various CUI categories. Each category provides detailed information to help you determine if your data qualifies as CUI. For example, under the "Defense" section, you'll find "Controlled Technical Information," which serves as an excellent case study for understanding the categorization process.

When you click on any CUI category, you'll see a detailed category description explaining what the information type encompasses, where reference documentation is located, and relevant regulatory definitions. However, the most critical information appears at the bottom of each category page in the "Safeguarding and/or Dissemination Authority" table.

This table indicates whether the CUI is classified as Basic or Specified, provides the required banner marking, and most importantly, links to the authoritative reference document. These reference documents contain specific requirements for system configurations, cloud environment types, and security controls needed for that particular CUI category.

Analyzing Specific Examples Like Controlled Technical Information

Previously, we mentioned Controlled Technical Information as a common CUI category. Let's examine this example to understand the categorization process thoroughly. When you access the Controlled Technical Information page and click the reference link under "Safeguarding and/or Dissemination Authority," you'll open a document containing detailed definitions and requirements.

Search for "Controlled Technical Information" within the document to find the precise definition of CTI. The document explains that CTI relates to technical data or computer software as defined in referenced DFARS clauses, specifically excluding commercial off-the-shelf items you could purchase at retail stores.

To fully understand if your data qualifies as CTI, you need to research the referenced DFARS clause 252.227-7013 "Rights in Technical Data for Non-Commercial Items." A Google search for "DFARS 252.227-7013" will lead you to the Acquisition.gov page containing complete definitions for computer database, computer program, and computer software.

This multi-step process helps you refine your understanding and accurately determine whether your data constitutes CUI. Remember, not everything you handle is CUI. For instance, your company budget isn't CUI unless you're a federal agency reporting to the Office of Management and Budget. The key is ensuring the information falls within a law, regulation, or government-wide policy that applies to contractors, and that it can be identified within the NARA CUI registry subcategories.

Common CUI Identification Mistakes and How to Avoid Them

Why Not Everything is CUI (Budget Example)

One of the most critical mistakes you can make in CUI identification is assuming that all government-related information automatically qualifies as Controlled Unclassified Information. This misconception leads to over-classification and unnecessary resource allocation.

CUI is designated by the government or an authorized official—not by you as the contractor. Just because information relates to a government contract doesn't make it CUI. For instance, your internal budget calculations for a government project may contain proprietary business information, but unless the government has specifically designated this financial data as CUI, it remains your internal business information.

If you suspect information has been incorrectly marked as CUI, you should raise the issue with your DoD contracting officer rather than making unilateral classification decisions. This prevents the common error of treating all contract-related data as sensitive when only specific elements actually require CUI protections.

Understanding Government-Wide Policy Requirements

Now that we've established what doesn't qualify as CUI, you need to understand that proper CUI identification requires staying current with government-wide policy requirements. Using outdated or incomplete guidance represents one of the most frequent classification errors contractors make.

Without current guidance aligned with DFARS and CMMC updates, your misclassification risks increase significantly. You must ensure your organization references the most recent policy documentation rather than relying on outdated internal procedures that may no longer reflect current requirements.

Distinguishing Between Contractor Data and Government-Owned Information

With policy requirements in mind, you must clearly distinguish between your contractor-generated data and government-owned information. This distinction is crucial for proper CUI handling and compliance.

Your internal business information, such as proprietary methodologies, internal communications, or company financial data, typically doesn't qualify as CUI unless the government has specifically designated it as such. However, technical specifications, engineering designs tied to defense programs, export-controlled information under ITAR or EAR, and personally identifiable information related to government contracts do qualify as CUI.

Poor internal communication between your departments—IT, compliance, engineering, and HR—often leads to contradictory classification practices. Without centralized standards, you risk mishandling both contractor data and government-owned information.

Avoiding Over-Classification of Internal Business Information

Previously, we've seen how misunderstanding CUI designation leads to over-classification. You must avoid treating all internal business information as CUI, as this creates unnecessary security burdens and resource waste.

Your HR team's employee records, for example, may contain PII that requires protection, but not all employee information qualifies as CUI. Only when this PII directly relates to government contracts does it potentially require CUI protections. Over-classifying internal business information diverts resources from protecting actual CUI and can create confusion about what truly requires stringent security measures.

To prevent these common mistakes, you should implement ongoing training and education for your staff on what constitutes CUI, develop clear internal policies for identification and handling, and conduct regular audits to identify classification issues early. These practices ensure you maintain proper CUI identification without over-protecting information that doesn't require such stringent controls.

CUI Handling, Marking, and Compliance Requirements

Proper Safeguarding and Physical Protection Standards

When handling information that may be CUI, you must implement robust physical protection standards to prevent unauthorized access or disclosure. Your organization should establish clear protocols for storing CUI in locked containers, secure facilities, or approved information systems that meet federal security requirements. You need to ensure that physical documents containing CUI are never left unattended in unsecured areas and that electronic storage systems have appropriate access controls and encryption measures in place.

Your workspace should maintain a clean desk policy where CUI materials are properly secured at the end of each workday. Additionally, you must control physical access to areas where CUI is processed, ensuring only authorized personnel can enter these spaces. Transportation of CUI requires special consideration - you should use approved methods and maintain chain of custody documentation throughout the process.

Marking Guidelines and Documentation Requirements

Understanding CUI marking guidelines is essential for proper compliance. You must clearly identify and mark all CUI materials according to federal standards, which helps ensure proper handling throughout the information lifecycle. Your marking practices should be consistent and follow prescribed formats that indicate the specific CUI category and any applicable dissemination controls.

When creating documentation that contains CUI, you need to apply appropriate markings from the initial creation through final disposition. This includes both physical documents and electronic files. Your organization should maintain detailed records of CUI creation, handling, and destruction to support audit requirements and demonstrate compliance with federal regulations.

Dissemination Controls and Access Management

Your access management protocols must align with the principle of "need to know" when dealing with CUI. You should implement role-based access controls that limit information access to only those individuals who require it for their official duties. This includes establishing clear approval processes for sharing CUI with external parties, including contractors and other government agencies.

You must also maintain detailed logs of who accesses CUI, when they access it, and for what purpose. Your organization should regularly review access permissions and promptly revoke access when personnel no longer require it for their duties. Electronic systems should include audit trails that track all CUI access and modifications.

Training Requirements and Personnel Responsibilities

Your personnel handling CUI must receive comprehensive training on identification, protection, and handling requirements. This training should cover the CUI framework, proper marking procedures, safeguarding requirements, and incident reporting protocols. You need to ensure that all staff understand their individual responsibilities and the potential consequences of mishandling CUI.

Regular refresher training is essential to maintain awareness and adapt to evolving requirements. Your organization should document all CUI training completion and maintain records to demonstrate compliance. Additionally, you must establish clear reporting procedures for suspected CUI incidents or violations, ensuring personnel know how to escalate concerns appropriately.

Understanding whether "information may be CUI" requires a systematic approach to identification and proper handling. By using the CUI framework's "Create, Use, Identify" methodology and leveraging the NARA CUI registry, you can accurately determine if your organization handles Controlled Unclassified Information. Remember that not everything is CUI – the information must be created by or for the government, fall under specific laws or regulations, and match the categories outlined in the official registry.

Once you've identified CUI in your systems, proper marking, safeguarding, and compliance become critical. Ensure your team receives appropriate CUI training, establishes controlled environments for handling this information, and follows the specific dissemination and destruction requirements. The consequences of mishandling CUI can include sanctions and compliance violations, making it essential to implement robust procedures that address these requirements comprehensively.