Defense News is reporting that the Director of National Intelligence (DNI) has granted the Pentagon a temporary waiver delaying the effective date of a new Federal Acquisition Regulation Interim Rule implementing the National Defense Authorization Act Fiscal Year 2019 Section 889(a)(1)(B)’s ban on contractor use of Huawei and other Chinese telecommunications equipment and services. As we have previously reported, the Interim Rule was scheduled to go into effect on Aug. 13, but it has now been delayed until Sept. 30. The temporary waiver appears to be a response to industry concerns about not having enough time to comply with the rule and to potential constraints the rule would put on the Pentagon’s ability to execute certain programs.
There have yet to be any official publications or announcements from DNI or the Pentagon confirming the temporary waiver, but we will continue to share updates concerning Section 889 as they become available.
For more information, please contact a member of Taft’s Government Contracts team.