Beginning August 13, 2020, executive agencies will be prohibited from contracting with companies that use “covered telecommunications products or services” (i.e., technologies from certain China-based companies) – even if the use is unrelated to performance of federal contracts.

On July 13, 2020, the FAR Council issued an interim rule amending the Federal Acquisition Regulation (FAR) to implement section 889(a)(1)(B) of the National Defense Authorization Act (NDAA) for FY 2019. Section 889 has several rules prohibiting the use of federal funding for the procurement of the “covered telecommunications products or services,” including Section 889(a)(1)(A), which went into effect in August 2019 and prohibits federal agencies from procuring any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component or as critical technology as part of any system.

Click here to read the full client alert explaining the potential impacts of the rule on US federal contractors and their suppliers.