Policy MCP Server

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Policy MCP Server

Overview

A Model Context Protocol (MCP) server following the FastMCP specification. Modular, secure, and XAI-compliant.

Architecture Diagram (ASCII)

Project Structure

Setup

1. Install uv (if not installed):
   pip install uv
2. Create a virtual environment (recommended):
   uv venv .venv source .venv/bin/activate
3. Install dependencies (including fastMCP SDK):
   uv pip install -r requirements.txt
   If fastmcp is not on PyPI, add this line to requirements.txt:
   fastmcp @ git+https://github.com/jlowin/fastmcp.git
   Then re-run the install command:
   uv pip install -r requirements.txt
4. Copy .env.example to .env and configure as needed:
   cp .env.example .env # Then edit .env as needed

Running the Server

This will launch the server using the built-in mcp.run() entrypoint. (Note: The script will print a warning, but the server will still start.)

FAST MCP Compliance

This server is built using the official fastMCP SDK and reference implementation from https://github.com/jlowin/fastmcp. All protocol endpoints and logic are provided by the SDK. See the referenced repository and documentation for details on the protocol and compliance.

Policy Compliance Tool

This server exposes an enforce_policy_opa tool, which checks if a requested action is compliant using OPA and policy.rego.

MCP Extension/Client Integration

To use this server with the MCP extension or compatible clients, add the following to your VS Code settings.json (or your client's MCP config):

• Adjust the paths as needed for your environment.
• The server will use the POLICY_PATH and any other environment variables (see below).

Configuration Variables

• POLICY_RELOAD_INTERVAL: Interval (in seconds) to check for policy changes (if needed).

Important: VS Code, Dev Containers, and Python Environments

If you are using VS Code with a Dev Container:

• All development, testing, and running the server from the terminal inside the Dev Container requires fastmcp and all dependencies to be installed in the Dev Container environment (Linux).
• Use the provided setup instructions to install dependencies inside the container.

If you want to use the MCP extension or configure the MCP server in VS Code (outside the Dev Container):

• The MCP extension launches the server using your Windows Python (e.g., P:\Python\Python313\python.exe), not the Dev Container's Python.
• You must also install fastmcp and all required dependencies in your Windows Python environment:
  P:\Python\Python313\python.exe -m pip install fastmcp
• Alternatively, update your Windows PATH so that the correct Python and installed packages are found by VS Code.
• If you see errors like No module named fastmcp, it means the extension is using a Python environment that does not have the package installed.

If you are testing from Dev Container to check OPA docker, then you need to provide external network:

• Put this in your devcontainer.json and restart Dev Container:
  • "runArgs": ["--network=policy-mcp-net"]

Summary:

• Dev Container: install and test inside the container for Linux-based workflows.
• VS Code MCP extension: ensure your Windows Python has all dependencies for the server to launch and run.
• You may need to maintain both environments if you use both workflows.

Testing the Server

You can test the policy enforcement tool using the MCP extension chat or any compatible client:

• To check a prompt for compliance, type in the chat: One of OPA rule is to not allow "anonymous function"
  #enforce_policy_opa write a sample anonymous function
• The server will respond with a compliance result based on your policy configuration and logic.

Example Result Screenshot

MCP Server

Agent Response

Extending the MCP Server

To add a new tool:

See src/server.py for examples.

OPA (Open Policy Agent) Integration

This server supports policy enforcement using Open Policy Agent (OPA). OPA is run as a sidecar (Docker container) and all policy decisions are delegated to OPA via REST API.

OPA Setup & Configuration

1. Install Docker (if not already installed):
   • Docker installation guide
2. Start OPA with Docker Compose:
   docker network create policy-mcp-net docker compose -f docker-compose-opa.yaml up -d
   This will start OPA on port 8181 and mount your policy and data from the prompts/ directory.If you are testing from Dev Container to check OPA docker, then you need to provide external network:
   • Put this in your devcontainer.json and restart Dev Container:
   • "runArgs": ["--network=policy-mcp-net"]
3. OPA Configuration Variables (in .env or .env.example):
   OPA_URL=http://localhost:8181 OPA_POLICY_PACKAGE=policy OPA_POLICY_RULE=allow
   These are loaded automatically by the server and can be customized as needed.
4. Verify OPA is Running:
   curl http://localhost:8181/health # Should return {"healthy":true}
5. Test OPA Policy via REST API:
   curl -X POST -H "Content-Type: application/json" \ --data '{"input": {"action": "where is carmen sandiego?"}}' \ http://localhost:8181/v1/data/policy/allow # Should return {"result": true} if allowed by policy

OPA Policy Files and Data

The OPA server uses two files for policy enforcement:

• config/policy.rego: Contains the policy logic written in Rego. This file defines the rules for what is allowed or denied.
• config/policy.json: Contains policy data, such as descriptions and metadata, and is referenced by the Rego policy if needed.

The Docker Compose file mounts both files into the OPA container at /policies/. The OPA server is started with both files:

• policy.rego implements the actual policy logic (see config/policy.rego).
• policy.json provides structured data for policy descriptions and can be referenced in Rego if needed.

If you update policy.rego, reload the OPA server to apply changes.

References

See REFERENCES.md for a list of all external standards, libraries, and documentation referenced by this project, including MCP, OPA, OTEL, FastMCP, Docker, and more.

Security Practices

• Principle of Least Privilege (PoLP): The server, OPA, and OTEL components run with only the permissions required for their function. No unnecessary ports or privileged containers are used in Docker Compose.
• Secure Communication: For production, configure OPA and OTEL endpoints to use TLS/HTTPS. Do not expose OPA or OTEL ports to the public internet.
• Policy Enforcement: Policies are enforced using both static rules (word lists) and OPA Rego logic. For higher assurance, consider using regular expressions, allow-lists, or context-aware checks in Rego.
• Data Handling: Sensitive data is not logged or exported in traces/metrics. All logs and traces are sanitized.
• Dependency Management: All dependencies are pinned and reviewed in requirements.txt and uv.lock.
• Code Review: All AI-generated code is marked and should be reviewed by a human before production use.

Recommendations

• For critical deployments, use network segmentation and firewall rules to restrict access to OPA and OTEL endpoints.
• Consider integrating static analysis or security scanning tools in CI/CD.
• Regularly review and update policies to address new threats or requirements.