Law360 Publishes Akin Gump Article on Proposed Grant Restrictions on Use of Certain Chinese Products or Services

February 5, 2020

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Law360 has published the article “Defense Policy Banning Chinese Telecom Will Likely Expand,” written by Akin Gump government contracts partners Robert Huffman, Angela Styles and Scott Heimberg and associate Chris Chamberlain. The article, which originated as an Akin Gump client alert, looks at proposed changes by the Office of Management and Budget (OMB) to its grants and agreements regulations to implement Section 889 of the National Defense Authorization Act for 2019.

The authors write that the regulations “prohibit the procurement and use of certain covered telecommunications equipment and services produced by Chinese companies.” If implemented, the new proposals “could have significant ramifications for recipients of federal grants, cooperative agreements and loans, as well as their sub-recipients and suppliers.”

Any entity that receives “federal grants, cooperative agreements or loans, and those who contract with such entities,” the authors write, “should undertake an assessment of their exposure to Section 889 and the potential consequences of the OMB’s proposed rule on their existing and future federal awards.” Affected entities, they add, “should consider filing comments with the OMB, as this feedback will be of critical importance.”

To read the complete article, please click here.

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