Security Clearances at the Speed of Startups

Imagine you got a job offer from a company but weren’t allowed to start work – or get paid – for almost a year. And if you can’t pass a security clearance your offer is rescinded. Or you get offered an internship but can’t work on the most interesting part of the project. Sounds like a nonstarter. Well that’s the current process if you want to work for companies or government agencies that work on classified programs.


One Silicon Valley company, Palantir, is trying to change that and shorten the time between getting hired and doing productive work. Here’s why and how.

Over the last five years more of my students have understood that Russia’s brutal war in Ukraine and strategic competition with the People’s Republic of China mean that the world is no longer a stable and safe place. This has convinced many of them to work on national security problems in defense startups.

However, many of those companies and government agencies require you to work on projects with sensitive information the government wants to protect. These are called classified programs. To get hired, and to work on them, you need to first pass a government security clearance. (A security clearance is how the government learns whether you are trustworthy enough to keep secrets and not damage national security.)

For jobs at most defense startups/contractors or national security agencies, instead of starting work with your offer letter, you’d instead receive a “conditional” job offer – that’s a fancy way to say, “we want you to work here, but you need to wait 3 to 9 months without pay until you start, and if you can’t pass the security clearance we won’t hire you.” That’s a pretty high bar for students who have lots of other options for where to work.

Types of Security Clearances
The time it takes for the clearance process depends on the thoroughness and how deeply the government investigates your background. That’s directly related to how classified will be the work you will be doing. The three primary levels of classification (from least to greatest) are Confidential, Secret, and Top Secret. The type and depth of background investigations to get a security clearance depends on what level of classified information you will be working with. For example, if you just need access to Confidential or Secret material they would do a National Agency Check with Law and Credit (NACLC). The government will look at the FBI’s criminal history repository, do a credit check, and a check with your local law enforcement agencies. This can take a relatively short time (~3 months).

On the other hand if you’re going to work on a Top Secret/SCI project, this requires a more extensive (and much longer ~6-9 months) background check called a Single Scope Background Investigation (SSBI). Some types of clearances also require you to take a polygraph (lie-detector) test.

How Does the Government “Clear” you?
The National Background Investigation Services (NBIS) is the government agency that will investigate your background. They will ask about your:

  • Drugs and Alcohol (hard drugs, addiction, chronic drinking, etc.)
  • Criminal conduct (felonies..)
  • Financial stability (they’ll run a Credit Bureau Report)
  • How you’ve used IT systems (e.g. have you hacked any?)
  • United States allegiance
  • Foreign influence (do you own property overseas? Foreign investments, etc.)
  • Psychological conditions and personal behavior.
  • Travel History (have you lived or gone to China, Russia, Iran, North Korea, Syria, etc.)
  • Plus, they will talk to your friends, relatives, current and ex-significant others, etc. to learn more about you

Palantir’s Accelerated Student Clearance Plan
Palantir wants their interns and new hires to hit the ground running and work on the toughest and most interesting government problems from day one. However, these types of problems require having a security clearance. The problem is that today, all companies start an application for a security clearance the day you show up for work.

Palantir’s idea? If you get an internship or full-time offer from Palantir while you’re still in school, they will immediately employ you as a contractor. This will let them start your security clearance process while in school before you show up for work. That means you will be cleared ~9 months later in time for your first day on the job. Think of this like a college early admissions program. (If you’re interning, Palantir will hold your clearance for you if you come back to Palantir the following year.)

Why Do This?
Obviously this is a long-term strategic investment in Palantir’s college talent, but it also affects the entire defense ecosystem – to create a broader team of America’s best engineers who are able to support our country’s most critical missions. And they are encouraging other Defense Tech companies to implement a similar program.

I think it’s a great idea.

Now what are the other innovative ideas Silicon Valley can do to attract a national security workforce?

8 Responses

  1. EE, CS, or ME degree candidates should get a clearance through a university research organization at the start of their senior year, by default. It should actually not be an option.

    • You’re suggesting that each EE, CS, or ME student should have all their personal relationships investigated by the US Gov, take a polygraph, and be forced to disclose all foreign travel or investments indefinitely? I think *that* is a nonstarter.

    • NACLC and SSBI referenced in the article were replaced by T3 & T5s in 2012. Pre-employment eligibility requests, which eliminate the requirement to hire someone as a consultant, have been allowed from the beginning. And starting eligibility for someone without a contractual requirement to do so is a violation of 32 CFR 117, and NISPOM before that, as is creating a cache of employees. If you know Steve Blank, let him know is ghost writer or AI let him down by over a decade…

  2. Steve,
    You may have missed a dirty secret among the large federal contractors. They often purposely include the small and economically-disadvantaged contractors (8As) for their bid captures. This allows them to check off the requirements for inclusion of X percent of subcontracting to Small Businesses.

    However, the primes well know that the subs do not have the necessary Cleared Personnel until the contract is awarded and can start the recruitment process. Once the contract is awarded, the prime then tells the small subcontractors that since they cannot fill the slots with “Cleared Personnel”, the prime will have to take over the sub’s intended work. Which means that the prime earns more.

    Interestingly, the DHS does NOT recognize a DOD Security Clearance. Insane.

    There are many companies who will NOT welcome a change in the long security clearance process.
    We should have a chat soon.

    Stephen Day
    Stephen@heartlandclinicsusa.com

  3. In addition to understanding who the person is, a security clearance sets a standard of behavior against which to identify gross deviations and to monitor attempts to recruit that person.

    If you hold a clearance like a TSBISCI – top secret secret background investigation special compartmentalized information — you will have monthly reviews of your behavior.

    Often the interviewers are looking for inadvertant conduct that suggests the party holding the clearance is the object of a recruitment or penetration attack.

  4. I will not support anything with Peter Thiel involved. He’s trying to subvert our democracy.

  5. Another bottleneck area (somehow related), is obtaining work visa or green card for foreign talents/graduates in the US. The requirements for H-1B or any employment-based sponsorship will reduce their career options.

    For employers (especially startups), it is also a hassle, cost wise and also the long processing time to be able to have that talent start working.

  6. I think this is a great idea. Clearance process is a bar to entry for many students. An accelerated process would attract more of our best and brightest.

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