SIA provides analysis of rules related to NDAA

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08/21/2019

If you’re part of the security industry, there’s little doubt you haven’t heard about the Federal Acquisition Regulation (FAR) rule announced last week that started the ball rolling on the prohibition to procure certain Chinese telecommunications and video surveillance equipment. The key word here is “certain,” meaning not all equipment is part of the rule, and security contractors are left scrambling trying to figure out exactly what to do.

The Security Industry Association (SIA) jumped into action and released a preliminary analysis of the rule that focuses specifically on the video surveillance equipment and services covered. SIA also stated that they will update the analysis with additional insight and information as needed, and the association will host a webinar tomorrow, August 22 at 1pm ET to brief members on its analysis of the NDAA prohibition and acquisition rules.

According to SIA’s analysis, security contractors need to understand the following:

Remember the effective date, August 13, 2019. Why is this so important? Because all solicitations, contracts and contract awards issued on or after this date will include clauses prohibiting procurement of covered equipment and services.

Disclosure requirements for new contracts. Beginning on the effective date, all offerors must provide self-certification as to whether ANY of their offerings to the federal government include covered equipment or services. This also extends to subcontractors.

Reporting requirements. Beginning on the effective date, contractors and subcontractors are required to report any covered equipment, system or services provided and discovered during contract performance within one day of discovery. In addition, within 10 days, the contractor must explain mitigation actions taken or recommended.

Scope of prohibition. Extends to purchases below the minimum purchasing threshold (up to $10,000 in 2019), regardless of the commercial-off-the-shelf (COTS) waiver.

Government-only waivers. Contractors and companies cannot obtain waivers; they are only available for government entities.

Tailored approach to collected information. GSA has issued its tailored implementation rules.

For more detailed information about NDAA and FAR, including a answers to frequently asked questions relating to the ban, please check out SIA’s full analysis here, and attend SIA’s webinar.

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