Regulation Implementing NDAA Procurement Ban Announced

On the afternoon of Aug. 7, 2019, the pre-publication version of the Federal Acquisition Regulation (FAR) rule implementing the first subsection of the procurement prohibition on certain Chinese telecommunications and video surveillance equipment was posted. It is anticipated that the rule will be published in the Federal Register as early as Thursday, Aug. 8 (regulations.gov).

These rules and contract clauses added to the FAR through the proceeding should be carefully reviewed by suppliers of video surveillance equipment to the government. As an “interim final rule,” the provisions will go into effect immediately on Tuesday, Aug. 13, with a notice and comment period following versus (more commonly) preceding the effective date.

Notably, the rule covers only the provision of the fiscal year 2019 National Defense Authorization Act (NDAA) Section 889 set to go into effect one year following enactment – subsection (a)(1)(A) relating to direct government procurement of covered equipment and services. The remaining provisions of Section 889 (including applicability to the use of federal grant funds) are scheduled to go into effect in August 2020.

The Security Industry Association (SIA) is working to provide members with a preliminary analysis of the rule as quickly as possible. Additionally, SIA will provide a briefing for members on the interim rule, and we welcome member input regarding the opportunity to offer comments on behalf of the industry.

If you have any questions, please contact Jake Parker, SIA senior director of government relations, at jparker@securityindustry.org.

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