ITI Responds to Enactment of Major Government Acquisition Supply Chain Law
WASHINGTON – Today, the Prohibition on Contracting with Entities Using Certain Telecommunications and Video Surveillance Equipment or Services (FAR Case 2019-009), which implements Sec. 889 of the FY2019 National Defense Authorization Act, banning U.S. government contractor use of telecommunications equipment from Huawei and ZTE and certain video surveillance equipment from three other named entities, formally went into effect for U.S. government contractors.
“Many of ITI’s members are longstanding partners with the U.S. federal government, and we wholeheartedly support the U.S. Congress’ goal of protecting federal supply chains from potentially-compromised equipment,” said Gordon Bitko, ITI’s SVP for Public Sector Policy. “However, because of the extended time it took to roll out rules for these far-reaching requirements, contractors may not be able to consistently meet the law’s objectives. We look forward to providing input into the rule and continuing our work with federal agencies to secure the U.S. government’s IT networks and infrastructure while minimizing unintended negative commercial impacts.”
The Federal Acquisition Regulatory Council published an interim rule (opens in a new tab) on July 14, 2020, giving contractors just under a month to conduct the rule’s required examination of company records to ensure the absence of covered equipment and services. The rule applies to all U.S. government contracts, including micro-purchases and contracts for the acquisition of commercial items, both of which are typically exempt from federal acquisition requirements and is expected to dramatically impact the federal government’s ability to procure necessary products and services.
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