Effective Immediately! FAR Amended To Include Prohibition On Chinese Telecommunications Eq...

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By Townsend L. Bourne, David S. Gallacher and Jonathan E. Meyer

In accordance with Section 889(a)(1)(A) of the 2019 National Defense
Authorization Act (Pub. L. No. 115-232) (the "2019 NDAA"), which
required imposition of broad restrictions on procurements involving
certain Chinese telecommunications hardware manufacturers such as
Huawei Technologies Co. and ZTE Corp within one year, the FAR Council
has released an interim rule implementing these restrictions. Today,
the FAR Council released Federal Acquisition Circular 2019-05 (84
Fed. Reg. 40,216), creating a new FAR Subpart 4.21, as well as two new
contract clauses, FAR 52.204-24 and 52.204-25, all of which are
effective August 13, 2019. These restrictions apply not only to prime
contractors, but also to all subcontractors and throughout the supply
chain. Government contractors need to know that these new requirements
are effective immediately and that opportunities for waivers are very
limited.

http://www.mondaq.com/article.asp?articleid=836904&email_access=on

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Bill Horne
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