Defense Contractors Get Temporary Reprieve from New Cybersecurity Requirements

 

The Director of National Intelligence recently unclassified its memorandum extending the waiver issued in August on the applicability of new prohibition of certain telecommunications for the Department of Defense (DOD).  The new memo will allow DOD to continue to contract for “low risk” products and services with entities it’d otherwise be prohibited until September 30, 2022.  It is unclear what exactly constitutes “low risk” as no accompanying guidance has been made public.  Contractors should check their contracts to ensure they either do or do not meet the waiver’s requirements.

The Interim Final Rule (IFR), often referred to as “Section 889 Part B,” prohibits federal agencies from entering into, extending, or renewing a contract with a contractor that uses any equipment, system, or service that utilizes certain Chinese companies’ telecommunications equipment or services as a component or critical technology of any system, unless an exception applies or a waiver is granted.  AGC has long called on Congress, and other agencies, to extend the date of implementation and to make key changes to the rule.  AGC will continue to update on any developments. 

For more information, contact jordan.howard@agc.org or (703) 837-5368.