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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

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The absurdity of government contracting

It is time for a top-to-bottom review of the acquisition process.

I take no joy in writing this article, but it is a desperate plea for improvement.

From 1995-2001, I worked for the Department of the Army as a contract specialist procuring advanced communications and electronics systems, equipment and services.

The first contract I ever negotiated was valued at over $3 million opposite an emerging company from Massachusetts. I had just finished my four-week Contracts 101 training in Virginia, and I was eager to put my newfound knowledge of the Federal Acquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS), and Army Federal Acquisition Regulation Supplement (AFARS) to work on behalf of the Army and the American taxpayer. Then reality set in. Despite being armed with this new knowledge and skill, I was hamstrung by a procurement system so vast, complex and rigid it would make Kafka blush.

Throughout the course of my next seven years with the Army, we were promised acquisition reform, enhanced efficiencies, paperless transactions and less red tape, particularly in connection with the procurement of commercial items and services.

Since leaving the Army, I have focused my practice primarily on commercial contracts in a variety of industries, ranging from media and entertainment to digital advertising and technology. Increasingly, however, I have been handling more government contracting issues for our clients, including negotiating contracts for prime and subcontractors and handling diligence and regulatory issues in connection with mergers and acquisitions. It never ceases to amaze and disappoint me how different these commercial contracts are to federal contracts. The commercial process is still so much faster and efficient; the contracts are generally much shorter and less complex; and the parties are able to navigate contentious issues through negotiations rather than having to abide by a panoply of opaque and largely wasteful regulations.

Keep reading this article at: https://www.afcea.org/content/absurdity-government-contracting

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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/

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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/

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Small business contractors experience diverse results under Coronavirus

Some firms suffer amid COVID-19, while others benefit from prescient agencies.

The COVID-19 coronavirus has been a mixed bag for small business contractors working with the federal government. Some are facing unique challenges as they try to fulfill their contractual obligations amid site shutdowns, while others are able to meet their obligations relatively seamlessly under contracts designed for telework.

Small business problems range from workers’ compensation details to meeting contractual specifications when not allowed to work on government sites. These problems may be the tip of the iceberg as the government moves forward in the post-COVID-19 era, experts say.

Yet some contracting bodies lessened the impact by awarding contracts that allowed, or even encouraged, telework and other alternate workplace requirements. Ultimately, structuring future contracts along these lines, where applicable, may hold the key to prevent challenges if similar situations unfold.

Uncertainty is the overriding concern of federal small business contractors, says Forrest Burke, CEO of Connected Logistics.  He relates that the federal government has shown flexibility in the move toward telework, and that flexibility has helped the transition become more seamless. But the top priority for many small businesses is to maintain their staff, and that often requires out-of-pocket outlays to keep people on payroll.

Keep reading this article at: https://www.afcea.org/content/small-business-contractors-experience-diverse-results-under-coronavirus

The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized.  Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/

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