New Regulation Impacts EVERY Federal Contractor

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Part B of the National Defense Authorization Act of 2020, Section 889 comes into effect on August 12th, and will affect EVERY federal contractor.

It prohibits the government from contracting with any company that uses certain telecommunication equipment or services produced by 5 Chinese-based companies (Huawei; ZTE Corp; Hytera; Hangzhou Hikivsion; Dahau Technology)

It applies to every industry; to every size contract; whether or not the equipment/services are used specifically for a federal contract.

Agencies cannot award a contract, or extend/renew an existing contract, with a company that uses any of these prohibited equipment/services.

Telecommunications systems include such things as mobile phones and hotspots, laptops, tablets, network equipment, routers and switches, radio transceivers & systems; video surveillance products and services, including security systems. Also remember to check items that may be used by your employees working from home.

You’ll need to  conduct a ‘reasonable inquiry’ into whether your company uses “covered telecommunications” equipment/services, as a ‘substantial or essential component’ of any system.

A ‘reasonable inquiry’ is designed to uncover information you already have in your possession about the producer or provider of these products/services. It need not include an internal or third-party audit.

 

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