On Aug. 12, U.S. Director of National Intelligence (DNI) John Ratcliffe issued a memorandum to the U.S Department of Defense (DOD) granting a waiver to the prohibitions listed in Section 889 (a)(1)(B) of the 2019 National Defense Authorization Act (NDAA). Citing national security interests in the context of DOD procurement, DNI Ratcliffe exercised existing authorities to offer a temporary waiver until Wednesday, Sept. 30, 2020.
Security companies should be aware that this applies only to DOD contractors providing products that are “low-risk to national security such as food, clothing, maintenance services, construction materials that are not electronic and numerous other items that [the Office of the DNI] has identified as commodities, low-risk commodities,” according to Under Secretary of Defense for Acquisition and Sustainment Ellen Lord. This delay could affect customers who have federal contracts, depending on the products they provide.
After the Sept. 30 deadline, unless an additional extension is granted, contractors will be required to comply with the requirements set forth in NDAA Sec. 889(a)(1)(B). For information on the final rule, please review SIA’s preliminary analysis.