Chinese firms | The Contracting Education Academy

January 5, 2021 By cs

More guidance on contracting prohibition with entities using telecom equipment and services

Federal agencies, particularly the General Services Administration (GSA), continue to publish guidance relating to the prohibitions of Section 889 of the FY 2019 National Defense Authorization Act (NDAA).

Section 889 prohibits the federal government from obtaining, and federal contractors from using, certain telecommunications equipment and services offered by Chinese companies, such as Huawei and ZTE. Previous posts on Section 889 are available here, here, here, and here.

More recently, GSA published a series of resources for federal contractors, including webinar slides and an updated Frequently Asked Questions (FAQ) guide to provide details regarding GSA’s implementation of Section 889.

These resources give federal contractors insight into GSA’s strategy for implementing Section 889, and they help to resolve some of the ambiguities and administrative uncertainties contained in the interim rule.

Read some of the highlights from these resources at: https://www.mondaq.com/unitedstates/government-contracts-procurement-ppp/1013820/more-gsa-guidance-on-section-88939s-prohibition-on-contracting-with-entities-using-certain-telecommunications-equipment-and-services

September 24, 2020 By cs

Comments on government supply chain rule push for better definitions and more time

Industry groups and other comments highlight the difficulty of complying with a provision of last year’s defense authorization act that requires the removal of products from companies including Huawei and ZTE.

The broad, ambiguous language of Congressionally-mandated rule for government contractors to remove products and services from companies that pose threats to national security is complicating implementation, according to public comments.

The comment period for the interim Federal Acquisition Rule implementing Part B of Section 889 — a provision of the 2019 National Defense Authorization Act — closed last week, and the more than 30 comments submitted raise questions related to fundamental compliance issues.

While in general, commenters agree with the rule’s intent, groups representing industry, including the National Defense Industrial Association, BSA | The Software Alliance, the Coalition for Government Procurement and the Internet Association submitted detailed letters to Regulations.gov outlining compliance challenges. Nearly all asked for extended timelines for implementation and better definitions for key terms and phrases used in the regulation.

Keep reading this article at: https://www.nextgov.com/cybersecurity/2020/09/comments-government-supply-chain-rule-push-better-definitions-and-more-time/168460/

July 29, 2020 By cs

Deadline looms for contractors to ditch banned Chinese equipment

Federal contractors face a late-summer deadline to ensure they’re not using banned Chinese equipment and services to fulfill their federal contracts, a top White House federal acquisition official stressed.

Federal contractors have until Aug. 13 to comply with Part B of Section 889 of the 2019 National Defense Authorization Act, Office of Federal Procurement Policy Administrator Michael Wooten said during a July 13 Professional Services Counsel (PSC) webcast.

That provision prohibits government contractors from using technology and services tied to Chinese equipment manufacturers that have been deemed cybersecurity threats by the U.S. government. Those companies include telecommunications gear-makers Huawei and ZTE, as well as video surveillance manufacturer Hikvision.

The Trump administration has worked to push Huawei and ZTE out of U.S. federal and commercial telecommunications networks, both domestically and internationally, deeming the companies’ close relationships to the Chinese government as a virulent cybersecurity threat.

Keep reading this article at: https://fcw.com/articles/2020/07/13/rockwell-defense-contractors-huawei-ban.aspx

July 23, 2020 By cs

Cutting Chinese suppliers from government supply chains will cost billions every year

Prospective contractors are invited to comment on how much it might cost them.

**Click on image above to see Federal Register notice.**

Implementation of a rule barring federal agencies from entering into contracts with entities that use equipment from a selection of Chinese telecommunications and surveillance companies is expected to cost the government $11 billion in year one, and just over $2 billion each subsequent year, according to an action published in the Federal Register on July 14th.

The Federal Register action details an interim rule from the Department of Defense, the General Services Administration and NASA to implement the second part of section 889 of the John S. McCain National Defense Authorization Act of 2019.

Starting Aug. 13., Contracting Officers will include provisions in their solicitations that prohibit contractors from using the covered equipment and require bidders to state whether they do. Agency leaders can issue waivers in the case of emergencies, or other conditions, under the interim rule.

Covered equipment and services refer to those provided by Huawei, ZTE, Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company or Dahua Technology Company, or any subsidiary or affiliate of those entities.

Keep reading this article at: https://www.nextgov.com/cybersecurity/2020/07/cutting-chinese-suppliers-government-supply-chains-will-cost-billions-every-year/166846/

July 15, 2020 By cs

Second supply chain risk management rule drops putting agencies, vendors on notice

Starting Aug. 13, agencies will no longer be able to contract with companies using Chinese-made telecommunications products or services in their supply chains.

A new rule from the Federal Acquisition Regulatory Council prohibits agencies from buying products or services from companies which use Huawei, ZTE, or other prohibited products from Chinese companies. The prohibition applies to the use of telecommunications equipment or services, whether or not it is used in the performance of work under a federal contract.

The one exception is if the agency’s secretary issues a waiver for the contract.

“The statute is not limited to contracting with entities that use end-products produced by those companies; it also covers the use of any equipment, system or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system,” the council stated.

Keep reading this article at: https://federalnewsnetwork.com/acquisition-policy/2020/07/second-supply-chain-risk-management-rule-drops-putting-agencies-vendors-on-notice/

Federal agencies, particularly the General Services Administration (GSA), continue to publish guidance relating to the prohibitions of Section 889 of the FY 2019 National Defense Authorization Act (NDAA).

Industry groups and other comments highlight the difficulty of complying with a provision of last year’s defense authorization act that requires the removal of products from companies including Huawei and ZTE.

Federal contractors face a late-summer deadline to ensure they’re not using banned Chinese equipment and services to fulfill their federal contracts, a top White House federal acquisition official stressed.

Prospective contractors are invited to comment on how much it might cost them.

Starting Aug. 13, agencies will no longer be able to contract with companies using Chinese-made telecommunications products or services in their supply chains.

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