New FAR Clauses Concerning Chinese Manufactured Telecommunications Equipment

Posted on September 21, 2020 in Lawblog

The FAR Council issued two new FAR clauses with an effective date of August, 13, 2020 that restrict the supply / use of “covered” Chinese manufactured telecommunications equipment on US Government contracts. Under FAR Clause 52.204-26, the offeror/contractor must now represent whether covered equipment will be supplied under the contract. Similarly, FAR Clause 52.204-24 requires the offeror/contractor to represent whether it “uses covered telecommunications equipment or services.” If such equipment is being used, the contractor is required to disclose the details of such use to the Contracting Officer.

Under new FAR section 4.2102, equipment is considered “covered” where it represents “a substantial or essential component of any system, or as critical technology as part of any system, unless an exception at paragraph (b) applies or the covered telecommunications equipment or services are covered by a waiver described in 4.2104.”