GSA Proposes to Codify Override of Some Commercial Terms
Client Alert | 1 min read | 06.07.16
GSA issued a proposed rule to amend its acquisition regulation to make unenforceable certain common commercial supplier agreement (CSA) terms, a follow-up to the class deviation (discussed here) released last year. While some of the common commercial terms targeted arguably are, as GSA asserts, inconsistent or create ambiguity with federal law (e.g., provisions imposing non-federal law, arbitration provisions, and indemnification provisions), some likely are not (e.g., provisions giving precedence to government terms, placing restrictions on unilateral termination for breach, and requiring the contractor to provide the text of terms incorporated by reference).
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On September 29, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) announced a sweeping Interim Final Rule (IFR), (the “Affiliates Rule”) expanding which entities qualify as Entity List or Military End-User entities, thereby subjecting those entities to elevated export control restrictions under the Export Administration Regulations (EAR). U.S. export restrictions applicable to entities on the Entity List, Military End-User (MEU) List, and Specially Designated Nationals and Blocked Persons (SDN List) now apply to foreign affiliates that are, in the aggregate, owned 50% or more by one or more of the aforementioned entities. An entity that becomes subject to these restrictions because of its ownership structure will be subject to the most restrictive controls that attach to any of its parent entities, regardless of ownership stakes.
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