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Final Rule on Supply Chain Risk Fails to Provide Additional Guidance, Protection, or Relief from Uncertain Application

Nov.02.2015

On October 30, DoD published a final rule (a) requiring evaluation of supply chain risk when acquiring information technology that is either a covered National Security System ("NSS"), part of a covered NSS, or in support of a covered NSS; and (b) authorizing DoD to exclude primes or subs from a particular procurement if they fail to mitigate identified supply chain risks adequately. DoD made relatively modest changes to the 2013 interim rule (e.g., removing the flow-down requirement applicable to subs at any tier) but largely rejected industry input (e.g., declining to identify specific standards or controls to mitigate supply chain risk and declining to create a mechanism for challenging exclusion from a particular source selection).


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Alan W. H. Gourley
Partner – Washington, D.C., London
Phone: +1 202.624.2561 , +44.20.7413.1342
Email: agourley@crowell.com
Evan D. Wolff
Partner – Washington, D.C.
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Email: ewolff@crowell.com
Adelicia R. Cliffe
Counsel – Washington, D.C.
Phone: +1 202.624.2816
Email: acliffe@crowell.com
Kate M. Growley
Associate – Washington, D.C.
Phone: +1 202.624.2698
Email: kgrowley@crowell.com