Section B of the US 2019 National Defence Authorisation Act (NDAA) comes into affect on the 13th August 2020. It prevents US federal agencies from “enter into a contract (or extend or renew a contract) with an entity that uses any equipment, system, or services 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” (sic)
This significantly impacts suppliers to Federal Government as it will prevent Federal agencies from procuring from companies who use telecommunications or surveillance equipment or products and services which the Secretary of Defence reasonably believes to originate from an entity owned or controlled by China’s government. If correct gives the Secretary of Defence the ability to pick products and services.
It raises many questions for US suppliers to Federal government. From what I understand, it has got many suppliers taking stock of the products which they use and the origin of manufacture.
Article by: Lexology 07.07.2020