[Federal Register Volume 84, Number 156 (Tuesday, August 13, 2019)]
[Rules and Regulations]
[Page 40216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17200]



[[Page 40215]]

Vol. 84

Tuesday,

No. 156

August 13, 2019

Part III





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Chapter 1





Federal Acquisition Regulations; Interim Rules

  Federal Register / Vol. 84 , No. 156 / Tuesday, August 13, 2019 / 
Rules and Regulations  

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket No. FAR 2019-0002, Sequence No. 4]


Federal Acquisition Regulation; Federal Acquisition Circular 
2019-05; Introduction

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Summary presentation of an interim rule.

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SUMMARY: This document summarizes the Federal Acquisition Regulation 
(FAR) rule agreed to by the Civilian Agency Acquisition Council and the 
Defense Acquisition Regulations Council (Councils) in this Federal 
Acquisition Circular (FAC) 2019-05. A companion document, the Small 
Entity Compliance Guide (SECG), follows this FAC. The FAC, including 
the SECG, is available via the internet at http://www.regulations.gov.

DATES: For effective date see the separate document, which follows.

FOR FURTHER INFORMATION CONTACT: [email protected] or call 202-969-
4075. Please cite FAC 2019-05, FAR Case 2018-017.

SUPPLEMENTARY INFORMATION: A summary for the FAR rule follows. For the 
actual revisions and/or amendments made by this FAR Case, refer to the 
specific subject set forth in the document following this item summary. 
FAC 2019-05 amends the FAR as follows:

                       Rule Listed in FAC 2019-05
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             Subject                  FAR case            Analyst
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Prohibition on Contracting for           2018-017  Francis.
 Certain Telecommunications and
 Video Surveillance Services or
 Equipment.
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Prohibition on Contracting for Certain Telecommunications and Video 
Surveillance Services or Equipment (FAR Case 2018-017)

    This interim rule amends the FAR to implement section 889(a)(1)(A) 
of the John S. McCain National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 2019 (Pub. L. 115-232). Paragraph (a)(1)(A) of section 
889 prohibits agencies from procuring or obtaining, or extending or 
renewing a contract to procure or obtain, any equipment, system, or 
service that uses covered telecommunication equipment or services as a 
substantial or essential component of any system, or as a critical 
technology as part of any system on or after August 13, 2019, unless an 
exception applies or a waiver has been granted. Further prohibitions at 
paragraph (a)(1)(B) of section 889 go into effect August 13, 2020, and 
will be addressed through separate rulemaking.
    To implement paragraph (a)(1)(A) of section 889, this interim rule 
provides a new solicitation provision and contract clause. The 
provision at FAR 52.204-24 requires offerors to represent whether their 
offer includes covered telecommunications equipment or services and if 
so, to identify additional details about its use. Representations are 
also required for orders on indefinite delivery contracts. The clause 
at FAR 52.204-25 prohibits contractors from providing any equipment, 
system, or service that uses covered telecommunications equipment or 
services as a substantial or essential component of any system, or as 
critical technology as part of any system, unless an exception applies 
or the covered telecommunications equipment or services are covered by 
a waiver described in FAR 4.2104. The contractor must also report any 
such equipment, systems, or services discovered during contract 
performance; this requirement flows down to subcontractors.
    This rule applies to all acquisitions, including acquisitions at or 
below the simplified acquisition threshold and to acquisitions of 
commercial items, including commercially available off-the-shelf items. 
It may have a significant economic impact on a substantial number of 
small entities.
    This interim rule is being implemented as a national security 
measure to protect Government information, and Government information 
and communication technology systems.
    Contracting officers shall modify certain contracts to include the 
new FAR clause, as specified in the ``Dates'' section of the preamble 
of the interim rule. Contracting officers also shall include the new 
FAR provision in solicitations for an order, or notices of intent to 
place an order, under those contracts.

Janet M. Fry,
Director, Federal Acquisition Policy Division, Office of Government-
Wide Policy.

    Federal Acquisition Circular (FAC) 2019-05 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator of National Aeronautics and Space 
Administration.
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in FAC 2019-05 is 
effective August 13, 2019 except for FAR Case 2018-017, which is 
effective August 13, 2019.

Kim Herrington,

Acting Principal Director, Defense Pricing and Contracting, 
Department of Defense.

Jeffrey A. Koses,

Senior Procurement Executive/Deputy CAO, Office of Acquisition 
Policy, U.S. General Services Administration.

William G. Roets, II,

Acting Assistant Administrator, Office of Procurement, National 
Aeronautics and Space Administration.

[FR Doc. 2019-17200 Filed 8-12-19; 8:45 am]
 BILLING CODE 6820-EP-P