FAR COUNCIL SAYS ITS TIME FOR A NEW CHAPTER

The proliferation of cyber and secure supply chain requirements governing federal acquisition has caused the FAR Council to announce the creation of Chapter 40 of the Federal Acquisition Regulations (FAR).  The new chapter will become the centralized home for all such regulations.  The final rule announcement from the FAR Council doesn’t, in and of itself, discuss new rules, only that all existing and future cyber and supply chain security regulations will be populated in the new chapter.  The idea is to provide contracting officers and contractors with an easy-to-find centralized location for what is required on the cyber front in specific acquisition situations.   The Federal Register notice announcing the creation of the new FAR part stated, “Security-related requirements that include, but are not limited to, information and communications technology (ICT) will be covered in FAR part 40.”  The final rule specifically identifies Section 889 A &B telecommunications security requirements as examples of what will be in the new chapter.  Security-related requirements that only apply to information and communications technology (ICT) acquisitions will continue to be covered in part 39, according to the notice.  Similarly, supply chain and information risks that are unrelated to security risks will continue to be covered in other FAR chapters.  Although the final rule states that the creation of the new chapter does not result in new contract clauses for COTS acquisitions or those under the Simplified Acquisition Threshold (SAT), contractors should expect that existing clauses will “lift and shift” to the new FAR part.  The creation of FAR Part 40 should be a net positive for government contractors as it will make applicable FAR clauses easier to find.  Whether specific clauses should be added to their contracts, though, is another matter.  Contractors should always be aware of the clauses that govern their contracts no matter what FAR, or agency FAR supplement, chapter they come from.