Practical Applications on the Chinese Tech Ban

On 23 July, the Defense Department released a memo explaining requirements for companies and contractors when the ban of telecommunications equipment made by Huawei and other China-based companies goes into effect. (Federal Computer Week, July 27, 2020)

Beginning 13 August, no contracts will be issued or extended to contractors using technologies or services and equipment made by Hikvision, ZTE or those listed in section 889(a)(1)(B) of the National Defense Authorization Act (NDAA) for Fiscal Year 2019. Any contract, task/delivery order, and off-the-shelf items purchased after 13 August must include language invoking regulation for the ban. Additionally, indefinite delivery contracts are required to be modified. (ibid)

There is a waiver process, however, pursuable by agencies. According to Alan Dhvotkin PSC executive vice president and counsel, the waiver “will most likely begin with issues identified by the telecommunications provider to its federal agency customer. The federal agency then asks for an ODNI review, which will conduct a risk assessment.” A granted waiver lasts two years and may be requested at any time. (Federal Computer Week, July 22, 2020)

Have questions or need a waiver? Give us a call.

 

HHS Did What?

The Department of Health and Human Services Program Support Center (PSC) has decided to end assisted acquisition services. Some agencies under the PSC umbrella include: the Office of Personnel Management, the Office of Special counsel, the Environmental Protection Agency, and the Defense Department (DoD).  (DoD accounts for roughly $1 billion of the $1.4 billion total contract amount under the PSC.) (Federal News Network, July 22, 2019)

It appears HHS stopped offering assisted acquisition services in mid June, just as agencies are preparing for fourth quarter acquisitions. This likely includes the $150 million multiple-award contract PSC was about to award for EPA along with a number of “in-process” contracts for DoD. Additionally, any award for the prior four years must be moved to other agencies or absorbed by the “home” agency by September 20, 2020. (ibid)

So why exactly did HHS decide to stop its assisted acquisition services? In a memo to the civilian agency customers, they said they do not have the internal controls, policies, or procedures necessary. DoD customers received a comparable memo. (ibid)

Why now? Possibly due to the manner in which PSC has handled classified information for DoD and other agencies’ procurements through the self-certification process. The self-certification process is achieved through the DD-254 form. However, a recent audit found that PSC does not actually perform classified work. (ibid)

Unfortunately, this abrupt change is putting a burden on many agencies. Since the decision was made and will affect the fourth-quarter spending, agencies must now scramble to get other assisted acquisition service provider help. The decision also affects vendors, who spend time and money to bid on solicitations that must restart. And the question remains: will vendors lose work from existing contract awards that they bid on and won?

Roughly one-third of all federal spending occurs in the fourth quarter, with one-quarter of the spending in September. Administrators plan to meet with member companies, DoD ,and the Office of Federal Procurement Policy to arrive at  a game plan going forward. (Federal News Network, July 22, 2019)

Will this affect a bid you are working on or a recent contract award? If so, give us a call.