In April 2024, DCSA began developing a replacement for NISS called NISS Increment 2, or NI2. The agency plans to spend approximately $163 million building it. NI2 is intended to deliver a multi-disciplinary risk picture across the defense industrial base, with role-based case management, automated communications, integrated analytics, and expanded access for government customers. Development is proceeding under an Agile methodology, which formally emphasizes early and continuous engagement with end users as a core principle of the approach.

The National Industrial Security System — NISS — is the web-based platform DCSA uses to manage and document the industrial security activities it performs across more than 12,500 cleared contractor facilities. It is also, by the consistent account of the officials who use it daily, a system that compounds the workload it is supposed to streamline.

The list of challenges documented by the GAO, drawn from focus groups with DCSA regional personnel, interviews with military department officials, and feedback from defense industry representatives, is extensive. NISS is slow, frequently timing out or failing to save work. It experiences significant periods of total unavailability. Its search functionality requires labor-intensive manual navigation through multiple records to surface information that should be readily queryable. It lacks trend reporting capabilities, forcing officials to export raw data and construct analytic products outside the system using workarounds. It does not interoperate reliably with other key systems — including the Enterprise Mission Assurance Support Service, the NISP Contract Classification System, and the Defense Information System for Security — meaning that data must frequently be manually re-entered across platforms. Information Systems Security Professionals reported that the lack of integration between NISS and the Enterprise Mission Assurance Support Service alone doubles or triples their workload on classified IT system oversight.