Section 889a1B of 2019 NDAA: Prohibitions on Telecomm Equipment

The Division of Protection, the Basic Companies Administration, and the Nationwide Aeronautics and Area Administration has revealed an interim remaining rule implementing part 889(a)(1)(B) of the John S. McCain Nationwide Protection Authorization Act for Fiscal Yr 2019 (Pub. L. 115-232, the 2019 NDAA).¹ ² This interim remaining rule is efficient August 13, 2020 and events might submit feedback per the directions within the Federal Register discover by September 14, 2020.

Part 889(a)(1)(B) of the 2019 NDAA prohibits govt companies from coming into into, or extending or renewing, a contract with an entity that makes use of any tools, system, or service that makes use of coated telecommunications tools or providers as a considerable or important element of any system, or as vital know-how as a part of any system. The statute covers sure telecommunications tools and providers produced or supplied by Huawei Applied sciences Firm or ZTE Company (or any subsidiary or affiliate of these entities) and sure video surveillance merchandise or telecommunications tools and providers produced or supplied by Hytera Communications Company, Hangzhou
Hikvision Digital Know-how Firm, or Dahua Know-how Firm (or any subsidiary or affiliate of these entities).

The statute applies to any tools, system, or service that makes use of coated telecommunications tools or providers as a considerable or important element of any system. It’s not restricted to finish merchandise produced by the 5 above named firms.

The Federal Acquisition Rules (FAR) Council is at present working to replace the System for Award Administration (SAM) with the intention to require offerors to signify whether or not they use coated telecommunications tools or providers, or use any tools, system, or service that makes use of coated
telecommunications tools or providers.

The FAR Council explains that it is crucial for contractors to develop a compliance plan so as to have the ability to submit correct representations to the Authorities. The FAR Council explains that creating a compliance plan will help contractors to be compliant and it expects contractors to develop a compliance plan throughout the first 12 months that Part 889(a)(1)(B) is in impact.

In line with the FAR Council, a contractor ought to take the next steps to implement a complete compliance plan:

Regulatory Familiarization. Familiarize itself with the rule and required actions.

Company Enterprise Monitoring. Decide if it utilized coated telecommunications tools or providers as a considerable or important element of any system, or as vital know-how as a part of any system.

Training. Educate the entity’s applicable professionals to make sure they’re acquainted and comfy with the compliance plan.

Price of Removing. As soon as use of coated telecommunications tools or providers is recognized, if the entity decides to exchange these tools or providers, guarantee new tools and providers are acquired.

Illustration. Present illustration to the Authorities concerning whether or not the entity is using coated telecommunications tools or providers and alert the Authorities if use is found throughout contract efficiency.

Price to Develop a Section-out Plan and Submit Waiver Info. As defined within the Federal Register Discover, there are restricted alternatives for contractors to request waivers. Due to this fact, if a contractor plans to request a waiver, it ought to develop a phase-out plan and supply this plan together with different required waiver info to the Authorities.³

As defined above, despite the fact that the interim remaining rule is efficient August 13, 2020, the FAR Council is accepting feedback on or earlier than September 14, 2020.

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1. 85 Fed. Reg. 42665 (Jul. 14, 2020), out there at https://www.federalregister.gov/paperwork/2020/07/14/2020-15293/federal-acquisition-regulation-prohibi-tion-on-contracting-with-entities-using-certain.

2. Part 889(a)(1)(A) went into impact on August 13, 2019. See 84 Fed. Reg. 40216 (Aug. 13, 2019).

3. See 85 Fed. Reg. 42665, 42667.