Section 889 Roll-Out Continues with OMB Revised Guidance for Federal Grants and Agreements
Client Alert | 1 min read | 08.13.20
Today, August 13, the Office of Management and Budget (OMB) published a series of changes to the OMB Guidance for Grants and Agreements, including the addition of 2 CFR 200.216, Prohibition on certain telecommunication and video surveillance services or equipment, which prohibits grant and loan recipients and subrecipients from using federal funds to enter into, or renew, contracts for equipment, services, or systems that use covered telecommunications equipment or services as a substantial or essential component of any system or critical technology as part of any system. This change is intended to implement the prohibition on Huawei, ZTE, and other covered telecommunications equipment and services issued in the 2019 National Defense Authorization Act Section 889. OMB has added a new definition for telecommunications and video surveillance costs and has clarified that costs for telecommunications and video surveillance services or equipment are allowable except for covered telecommunications equipment and services which are unallowable. Federal awarding agencies are required to prioritize funding for entities to transition from covered communications equipment and services, to procure replacement equipment and services, and to ensure the communication service to users and customers is sustained.
For additional information about recent Section 889 updates, see Crowell’s previous alerts:
Insights
Client Alert | 1 min read | 04.18.24
GSA Clarifies Permissibility of Upfront Payments for Software-as-a-Service Offerings
On March 15, 2024, the General Services Administration (GSA) issued Acquisition Letter MV-2024-01 providing guidance to GSA contracting officers on the use of upfront payments for acquisitions of cloud-based Software-as-a-Service (SaaS). Specifically, this acquisition letter clarifies that despite statutory prohibitions against the use of “advance” payments outside of narrowly-prescribed circumstances, upfront payments for SaaS licenses do not constitute an “advance” payment subject to these restrictions when made under the following conditions:
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