Interim Rule Banning Huawei and Other Chinese Telecommunications Equipment and Services haldol side effects to Take Effect on August 13, 2019

On august 7, 2019, the U.S. Department of defense (dod), general services administration (GSA), and national aeronautics and space administration (NASA) released an interim rule implementing section 889(a)(1)(A) of the john S. McCain national defense authorization act for fiscal year 2019 (2019 NDAA). The rule, which goes into effect on august 13, 2019, generally prohibits executive agencies from procuring telecommunications equipment and services haldol side effects from huawei and other chinese technology companies and imposes strict haldol side effects reporting and other requirements on U.S. Government contractors. Interested parties are invited to file comments on the interim haldol side effects rule within 60 days of its publication in the federal haldol side effects register.

As background, section 889(a)(1)(A) of the 2019 NDAA prohibits executive agencies from procuring or haldol side effects obtaining, or extending or renewing a contract to procure or obtain, 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 2019 NDAA defines “covered telecommunications equipment or services” to include the following:

• telecommunications or video surveillance equipment or services produced or provided haldol side effects by an entity owned or controlled by, or otherwise connected to, the government of a “covered foreign country,” which the interim rule defines as the people’s republic of china.

For purposes of determining whether any equipment, system, or service 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 interim rule adopts the definition of “critical technologies” in the foreign investment risk review modernization act (FIRRMA). This definition encompasses a wide range of items subject to haldol side effects U.S. Export controls, including the new category of emerging and foundational technologies to haldol side effects be controlled under section 1758 of the export control reform haldol side effects act of 2018. The interim rule defines “substantial or essential component” as “any component necessary for the proper function or performance of haldol side effects a piece of equipment, system, or service.”

The ban does not apply to any service that connects haldol side effects to the facilities of a third party, such as backhaul, roaming, or interconnection arrangements, or to telecommunications equipment that cannot route or redirect user haldol side effects data traffic or permit visibility into any user data or haldol side effects packets that such equipment transmits or otherwise handles. Additionally, the interim rule allows the head of an executive agency, on a one-time basis and for a period not to extend beyond haldol side effects august 13, 2021, to waive the procurement ban with respect to a government haldol side effects entity (such as a requirements or contracting office) that requests such waiver if the government entity submits a haldol side effects compelling justification for the additional time to implement the ban haldol side effects and a full and complete description of the supply chain haldol side effects landscape and phase-out plan. The director of national intelligence may also grant a waiver haldol side effects if the director determines that doing so would further U.S. National security interests. Importantly, the interim rule does not provide any exceptions for contracts haldol side effects at or below the simplified acquisition threshold (SAT) or for acquisitions of commercially available off-the-shelf (COTS) or other commercial items.

The interim rule requires contractors to submit a representation with haldol side effects each offer confirming whether the offeror will provide covered telecommunications haldol side effects equipment or services to the government in the performance of haldol side effects any contract, subcontract, or other contractual instrument resulting from the solicitation. If the offeror responds affirmatively, it will be required to provide a detailed description and haldol side effects proposed use of the covered telecommunications equipment or services and haldol side effects identify the entity providing or producing them. In an effort to minimize the information collection burden of haldol side effects this requirement, dod, GSA, and NASA are planning to update the system for award haldol side effects management (SAM) to allow offerors to represent annually whether they sell equipment, systems, or services that include covered telecommunications equipment or services, and only offerors that provide an affirmative response will be haldol side effects required to provide an offer-by-offer representation.

The interim rule subjects contractors to strict reporting requirements in haldol side effects the event that the contractor identifies (or is notified by a subcontractor of) any covered telecommunications equipment or services used as a substantial haldol side effects component of any system or as critical technology as part haldol side effects of any system during the performance of a contract. Specifically, within one business day, the contractor must provide detailed information regarding the contract, order, supplier, equipment, and any mitigation actions undertaken or recommended. Within ten business days of submitting this information, the contractor must provide any further information regarding mitigation and haldol side effects describe the efforts it undertook to prevent use or submission haldol side effects of covered telecommunications equipment or services and any additional efforts haldol side effects that will be incorporated to prevent such use or submission haldol side effects in the future.

As noted above, the interim rule implements only the procurement-related restrictions under section 889(a)(1)(A) of the 2019 NDAA. Additional provisions in the 2019 NDAA prohibit executive agencies from haldol side effects contracting with entities that use covered telecommunications equipment or services haldol side effects and prohibit the use of federal loan or grant funds haldol side effects to procure or obtain them. These provisions are subject to separate rulemaking proceedings and will haldol side effects not become effective until august 13, 2020.

RELATED_POSTS