Receive CohnReznick insights and event invitations on topics relevant to your business and role.
08/19/2020
DOD’s Section 889 implementation delay allows contractors extra time to re-evaluate equipment
The Department of Defense was recently granted a waiver by the Director of National Intelligence to delay implementing Section 889 of the 2019 National Defense Authorization Act until Sept. 30, 2020, from the original effective date of August 13. Section 889 mandates that the Department of Defense not do business with any government contractors whose supply chains contain products from five Chinese companies, most notably Huawei. The ban is a result of an administration assessment that these suppliers present a significant threat to national security.
What should contractors do now?
Defense contractors should continue to aggressively scrub their supply chains from top to bottom to ascertain whether they utilize any equipment from these soon-to-be-banned companies, and if they do should look to replace them as soon as possible. An inability to self-certify that none of this equipment is being used could preclude a contractor from being able to do business with the Department of Defense as of Oct. 1, 2020.
Subject matter expertise
Jeffrey Shapiro
CPA, Partner
Close
Contact
Let’s start a conversation about your company’s strategic goals and vision for the future.
Please fill all required fields*
Please verify your information and check to see if all require fields have been filled in.
Access Our Government Contracting Topic Page for Key Insights & Powerful Tools
Related services
This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.