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The Gift that Keeps on Giving: FAR Council Attempts to Reduce Burden of Representation Requirement for Covered Telecommunication Offerings

Client Alert | 1 min read | 12.16.19

Following an August 2019 interim rule that implemented a ban on government procurement of any equipment, system, or service that uses covered telecommunications equipment or services (CTES) from certain Chinese companies including Huawei and ZTE, effective December 13, 2019, the FAR Council issued a second interim rule authorizing companies to annually represent whether they provide CTES to the Government in the System for Award Management (SAM) registration. This new provision at FAR 52.204-26 would allow offerors to avoid the offer-by-offer representation requirement in FAR 52.204-24 (currently required under the first interim rule).

FAR 52.204-26 applies to all acquisitions, including simplified and commercial item acquisitions, and requires companies to review SAM and validate whether any products or services originate from CTES prior to completing their required representations. To facilitate compliance, the Government will update SAM to list the Chinese companies that provide CTES and annotate where prohibitions are limited to select products and services instead of the entire company.

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Client Alert | 1 min read | 07.08.26

CAS Board Publishes Final Rule Rescinding CAS 404, 408, 409, and 4117

As part of its ongoing effort to conform the Cost Accounting Standards (“CAS”) to generally accepted accounting principles (“GAAP”), the CAS Board published a final rule rescinding CAS 408 (Accounting for costs of compensated personal absence) and CAS 411 (Accounting for acquisition costs of material).  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which will be located in new paragraphs of CAS 405 (Accounting for unallowable costs).  Specifically, the CAS Board retained the requirements currently located at CAS 404-50(d)(1), CAS 409-50(e)(5), CAS 409-50(j)(1), and CAS 409-50(j)(4), which the CAS Board explained are necessary to protect the Government’s interests.  Otherwise, the CAS Board determined that the requirements of CAS 404, 408, 409, and 411 overlapped with GAAP such that GAAP “may be applied reasonably as a substitute for CAS to support contract cost and pricing.”...

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