What German A&D Contractors Need To Know About VS-NfD Compliance

German aerospace and defense contractors must be able to manage classified information securely while keeping projects moving forward. Securing Verschlusssache-Nur für den Dienstgebrauch (VS-NfD) data has become a make-or-break capability for companies seeking Bundeswehr (military) and NATO contracts. 

Yet many engineering teams have scattered data systems and inconsistent security practices that put compliance at risk. 

This guide unpacks how contractors can weave VS-NfD compliance into their everyday product development workflows.

Short on Time? Here's a Brief Overview  

• VS-NfD classification represents the lowest tier of classified information in Germany, equivalent to NATO/EU Restricted, requiring specific security controls for handling.

• PLM systems provide the essential foundation for compliance by centralizing product data with integrated security controls and audit trails.

• Security features like encryption, role-based access, and audit logging are mandatory for systems handling VS-NfD information.

• Combining PLM with targeted low code applications enables organizations to build custom compliance workflows while maintaining security.

What Is VS-NfD and Why It Matters to A&D Contractors

Verschlusssache-Nur für den Dienstgebrauch (VS-NfD), which translates to “Classified-For Official Use Only,’ sits at the entry level of Germany's four-tier classification system. It ranks below VS-Vertraulich (Confidential), Geheim (Secret), and Streng Geheim (Top Secret). 

According to the German Federal Office for Information Security (BSI), information tagged as VS-NfD could potentially harm German interests if it falls into unauthorized hands.

How it compares

VS-NfD matches the NATO/EU “Restricted” level, requiring consistent protection for equivalent data in international projects. Even at this lower classification level, leaks of information like technical drawings or operational details could harm national interests, reveal capabilities, or provide adversaries with insights.

Handling VS-NfD data correctly is often mandatory for Bundeswehr contracts. Companies must commit to protection in accordance with specific guidelines, such as the VS-NfD Merkblatt. Non-compliance risks legal trouble and contract termination, while any accidental breaches could severely damage reputations and trust.

As such, strong VS-NfD compliance offers a competitive edge, since secure firms are better positioned in bids, while less secure businesses risk exclusion entirely.

The Role of PLM in Supporting VS-NfD Compliance

Product Lifecycle Management (PLM) systems create a secure home for all product-related information. Instead of scattering sensitive data across multiple systems, PLM provides one central repository with built-in security controls.

Digital thread maintenance
PLM's strength in classification management lies in its ability to maintain the “digital thread” that connects all product information. When engineers create designs containing VS-NfD information, the PLM system preserves that classification as the design moves through development, manufacturing, and support. In short, sensitive information is prevented from slipping through security cracks.

Configuration and access management
Configuration management becomes straightforward with PLM. The system tracks every document version, recording who made changes, when they occurred, and what was modified. This means auditors and security officers can easily find exactly what they need.

Furthermore, access management in PLM applies the “need-to-know” principle essential for classified information. For instance, a hydraulic system engineer might review VS-NfD specifications for their component without accessing classified details about unrelated electronics.

Security Features A&D Contractors Should Look for in a PLM System

For a PLM system to properly support VS-NfD compliance, it needs specific security functions aligned with German standards.

Encryption and access controls
Strong encryption is vital in VS-NfD data protection. Your PLM should encrypt sensitive information both at rest and in transit. 

PLM systems should implement encryption methods that comply with BSI Technical Guideline TR-02102, which specifies approved cryptographic algorithms (such as AES-256, RSA-2048, and ECDSA with P-256 or higher curves) and minimum key lengths. Systems should also support secure key management through hardware security modules (HSMs) that have received BSI approval for VS-NfD use. 

Role-based access control with detailed permissions helps enforce the need-to-know principle. So, the PLM should let administrators set precise access rules based on job roles, projects, and security clearances.

Audit and classification features
Comprehensive audit logging captures a complete record of classified information handling. A good PLM system tracks who accessed information, when and where they accessed it, what actions they performed, and what changes they made. These logs should be tamper-resistant and available for security reviews.

Next, classification labeling ensures VS-NfD markings stay attached to sensitive information. The PLM should support classification tags that travel with documents throughout their lifecycle. Automatic marking of new documents prevents accidental exposure when information moves between systems.

Finally, integration with existing security tools rounds out the picture. PLM systems should connect with identity management systems, certificate authorities, and network security tools used for VS-NfD approval.

The link between PLM and low code (an optional extra)
Low code platforms can enhance PLM systems for VS-NfD environments by speeding up the development of security-focused applications. These platforms let organizations build custom interfaces and workflows for specific compliance needs while inheriting the PLM system's underlying security controls.

A contractor might use a low code platform to create the key processing for a dashboard showing all VS-NfD-classified components in a product, along with their current approval status and access history. This means security officers get a clear view of classification status without requiring deep PLM expertise.

Common Challenges and How To Overcome Them

Implementing VS-NfD-compliant systems presents several notable challenges for German aerospace and defense contractors.

1. Legacy systems and data migration
Legacy systems and scattered data create frequent headaches. Many contractors have sensitive information spread across various systems and moving this information into a secure PLM environment requires careful planning to maintain proper classification and access controls.

Companies that do that successfully typically begin with a thorough data inventory to identify all repositories that hold potential VS-NfD information. They then create a migration strategy with clear classification guidelines, ensuring that data receives appropriate security tags as it is moved to the new system.

2. Cross-border collaboration
Cross-border collaboration adds another layer of complexity. Defense projects often involve teams from multiple countries working under different security frameworks. A design classified as VS-NfD in Germany might connect with components governed by different classification schemes elsewhere.

Effective approaches include creating clear information exchange processes built on formal partner agreements. These typically establish security-equivalency mappings between classification systems and implement secure sharing portals.

3. Cultural resistance
Human factors can undermine even the best technical security measures. Engineers used to freely sharing information may view new security protocols as roadblocks to getting work done.

Companies that navigate this challenge successfully invest in practical training. They highlight the business value of compliance—securing contracts and avoiding penalties—while designing security procedures that minimize disruption to daily work.

About CLEVR and How We Can Help

CLEVR specializes in implementing secure solutions enhanced with low code capabilities for regulated industries. We understand the unique challenges faced by aerospace and defense contractors that need to manage VS-NfD-classified information across complex supply chains.

Our team brings together deep knowledge of Siemens Teamcenter PLM with advanced low code development expertise. We help organizations build secure foundations for managing classified product data alongside intuitive applications that make compliance straightforward.

Get in touch to learn more or schedule a consultation.

Research Methodology

This analysis draws on information from German Federal Office for Information Security (BSI) publications, NATO security mechanisms, and established best practices for handling classified information in defense environments. We included insights from security specialists working in aerospace and defense and examined real-world implementation challenges.

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