EXPECT MORE GUIDANCE ON COVERED TELECOM & IT
The FAR Council has already issued one clarification to its initial Interim Rule prohibiting companies that do business with the government from using covered IT and telecommunications anywhere in their business. The new rule, published in late August, clarifies that companies certifying that they do not use such covered equipment must only do so on an annual basis, not in response to each bid. More guidance is expected to come. Contractors should not confuse this guidance, though, with a removal of the requirement to get rid of or not acquire covered IT and telecommunications gear from a host of Chinese companies. Companies are absolutely expected to comply with the requirement. No Huawei, ZTE or other related equipment can be used by companies wishing to do business with the government, regardless of whether that equipment is used in support of the execution of a government contract. Be on the lookout, though, for more regulatory changes on this topic.