FAR Rule 2019-009 published on July 14, 2020 is effective on August 13, 2020 and implements prohibitions contained in section 889(a)(1)(B) of the National Defense Authorization Act (NDAA) for Fiscal Year 2019.
Section 889 of the NDAA for FY 2019 contains two prohibitions related to Federal contracting:
The first prohibition, set forth in section 889(a)(1)(A), took effect August 13, 2019, and prohibits the Government from buying and using covered telecommunications equipment or services from five named Chinese companies and their subsidiaries or affiliates.
The second prohibition, set forth in section 889(a)(1)(B), is effective August 13, 2020, and prohibits the Government from contracting with any entity that uses 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, on or after August 13, 2020, unless an exception applies or a waiver has been granted.
The interim rule requires offerors, after conducting a reasonable inquiry, to provide a representation regarding use of covered telecommunications equipment or services when submitting an offer. Further, contracts, task orders, and delivery orders must contain a clause that requires reporting if use of covered telecommunications equipment or services is discovered during performance of the contract. The interim rule applies to acquisitions of commercial items, including COTS items, and to purchases at or below the simplified acquisition threshold.
These implementation procedures apply to contracts, task orders, and delivery orders, including orders against basic ordering agreements (BOAs), and calls against blanket purchase agreements (BPAs). These implementation procedures also apply to BPAs and BOAs to facilitate the inclusion of these terms in BPA calls and BOA orders, which is required.
For DLA’s Automated Simplified Acquisitions, the DLA Master Solicitation will be updated On Page 1 to include amended language in Section 2 (b). In addition, effective dates will be revised for clauses 52.204-24 (AUG 2020) and 52.204-25 (AUG 2020).
For other contract ordering vehicles such Indefinite Delivery Indefinite Quantity contracts (IDIQs), Basic Order Agreements (BOAs), and Blanket Purchase Agreements (BPAs), DLA contracting activities are in process of issuing modifications to insert section 889 requirements.
New contract actions issued after August 13, 2020 will contain the appropriate clauses to implement section 889 requirements.
In the event contractor compliance is not possible, follow the reporting requirements in Section (d) of Clause 52.204-25 and discuss with your contract administrator/contracting officer.
Additional information is available at Acquisition.gov FAR Case 2019-009