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Industry & DoD Push for Delay in Implementing the Section 889(a)(1)(B) Prohibition

Client Alert | 1 min read | 06.18.20

Section 889(a)(1)(B) of the FY 2019 NDAA, scheduled to become effective on August 13, 2020, bars the Government from entering into a contract, or extending or renewing a contract, with any entity that uses certain covered telecommunications equipment or services. The prohibition against “use” of covered equipment applies broadly to a contractor’s “use” anywhere within the company (including affiliates), and is not limited to its performance of government contracts. Industry has expressed substantial concerns over the reach of this prohibition and over whether compliance is even possible. On June 10, 2020, as the deadline for implementation looms and FAR Case 19-009 remains pending, Under Secretary of Defense for Acquisition and Sustainment Ellen Lord testified before the House Armed Services Committee, seeking Congress to delay Section 889(a)(1)(B)’s effective date.

Under Secretary Lord expressed concerns with the DoD’s ability to implement the restrictions by the rapidly approaching deadline, and to ensure complete compliance within two years. Given the complexity of the defense supply chain, she suggested that an additional year is needed to prevent the statutory prohibition from creating any potential unintended consequences to the defense industrial base. Industry would also like to see a delay in implementation, as well as a scaling back of the prohibition’s reach.

Insights

Client Alert | 5 min read | 06.05.26

Grants Overhauled: What the Proposed Rewrite of 2 CFR Part 200 Means for Federal Financial Assistance Award Recipients

The Office of Management and Budget issued on May 29, 2026 a Proposed Rule that would significantly revise the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) at 2 C.F.R. Part 200, potentially impacting the full lifecycle of federal grants, cooperative agreements and other forms of financial assistance, from pre-award merit review through post-award administration and termination. These proposed changes are designed to implement the President’s policy priorities, executive actions related to diversity, equity and inclusion (DEI) activities, and Executive Order No. 14332, Improving Oversight of Federal Grantmaking (EO 14332)....