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.