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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.

Insights

Client Alert | 6 min read | 05.02.24

DDTC Publishes Proposed ITAR Amendments to Enhance AUKUS Defense Trade

On May 1, 2024, the Department of State’s Directorate of Defense Trade Controls (DDTC) published a proposed rule that, if implemented, would streamline defense trade between and among Australia, the United Kingdom (UK), and the United States in furtherance of the trilateral security partnership (the “AUKUS” partnership). DDTC issued the proposed rule pursuant to new authorities and requirements contained in Section 1343 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2024 which, in part, directs the Department of State to immediately implement an International Traffic in Arms Regulations (ITAR) exemption, subject to certain statutory limitations, for the UK and Australia if State determines and certifies that each has implemented (1) a system of export controls comparable to those of the United States and (2) a comparable exemption from its export controls for the United States. According to DDTC, the proposed rule “prepare[s] for a future exemption” and solicits public feedback “to shape a final rule following any positive certification.”...