Robert Huffman Discusses Impact of Chinese Telecom Ban on Gov’t Contractors
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For its article “Concerns mount as U.S. ban on Chinese telecom equipment moves forward,” Yahoo News quoted Akin Gump government contracts partner Robert Huffman on the possible impact of the ban on government contractors.
The article notes that a congressionally mandated ban on federal government deals with PRC telecommunications companies such as Huawei and ZTE is on track for implementation by late summer.
According to Huffman, the body responsible for implementing the ban, the Federal Acquisition Regulatory Council, has some leeway in interpreting Congress’ intent in mandating it. He noted that the rule will need to interpret key provisions in the law, such as the definition of a “substantial or essential component,” in order to determine if technology from one of these Chinese companies would qualify for restriction.
Huffman added, “If the terms are construed broadly, it would mean contractors using any Huawei etc. equipment or services anywhere in the world would be barred from federal contracts, period. This is the position industry is so concerned about...Most do not believe this will come to pass, as it’s just too disruptive.”
He noted that contractors and federal purchasers will need to pay stricter attention to supply chain security, which could include products manufactured by Huawei and sold by other companies.