Panoptic Enterprises’


Federal Acquisition Developments, Guidance, and Opinions

July 2018
Vol. XIX, No. 7
[pdf version]


FAC 2005-99 Prohibits Contracts with Kaspersky Lab, Entities Violating Arms Control Treaties
DOD Continues Deluge of Rules, Deviations
FAR Rule to Expand Emergency Procurement Authority
NASA Removes Chunks of the NFS
EPA Discontinues Its Mentor-Protégé Program

FAC 2005-99 Prohibits Contracts with Kaspersky Lab,
Entities Violating Arms Control Treaties

Federal Acquisition Circular (FAC) 2005-99 consists of two interim rules that amend the Federal Acquisition Regulation (FAR) to implement prohibitions contained in two different National Defense Authorization Acts (NDAA). One prohibits the use of products and services of Kaspersky Labs, a Russian firm that is suspected of being under Kremlin control; the other prohibits contracting with an entity involved in activities that violate arms control treaties or agreements with the United States.

DOD Continues Deluge of Rules, Deviations

The Department of Defense (DOD) continues it onslaught on the Defense FAR Supplement (DFARS), issuing four final rules, six proposed rules, three deviations, and four policy memoranda.

FAR Rule to Expand Emergency Procurement Authority

As the DOD did to the DFARS last month, a proposed rule has been issued that would implement the NDAA for FY 2017 (Public Law 114-328), Section 816, Amendments to Special Emergency Procurement Authority, and Section 1641, Special Emergency Procurement Authority to Facilitate the Defense Against or Recovery from a Cyber Attack, both of which amend 41 USC 1903, Special Emergency Procurement Authority. Section 816 adds “international disaster assistance” and “in support of an emergency or major disaster” to the list of special emergencies eligible for assistance; and Section 1641 adds “cyber” to “cyber, nuclear, biological, chemical, or radiological attack.” (For more on the amendments to the DFARS to implement Section 816 and Section 1641, see the June 2018 Federal Contracts Perspective article “DOD Unleashes a Torrent of Rules, Removes Unnecessary DFARS Clauses and Provisions.”)

To implement these two sections, the FAR would be amended as follows:

Comments on this proposed rule must be submitted no later than August 27, 2018, identified as “FAR Case 2017-009,” by either of the following methods: (1) the Federal eRulemaking Portal: http://www.regulations.gov; or (2) mail: General Services Administration, Regulatory Secretariat (MVCB), ATTN: Lois Mandell, 1800 F Street NW, 2nd Floor, Washington, DC 20405-0001.

NASA Removes Chunks of the NFS

The National Aeronautics and Space Administration (NASA) has decided to clean up the NASA FAR Supplement (NFS) by issuing direct final rules removing several portions of that regulation.

EPA Discontinues Its Mentor-Protégé Program

The Environmental Protection Agency (EPA) is issuing a direct final rule that removes EPA Acquisition Regulation (EPAAR) 1519.203, Mentor-Protégé, EPAAR 1552.219-70, Mentor-Protégé Program, and EPAAR 1552.219–71, Procedures for Participation in the EPA Mentor-Protégé Program, and will utilize the governmentwide mentor-protégé program that has been established by the Small Business Administration (SBA) (see the August 2016 Federal Contracts Perspective article “Governmentwide Mentor-Protégé Program Established”).

SBA was given the responsibility for civilian agencies’ mentor-protégé programs (DOD is exempt from this because it has the necessary statutory and regulatory framework for its own mentor-protégé program). SBA received this responsibility from two statutes:

Since SBA’s mentor-protégé program is governmentwide, EPA can use it instead of managing its own program. EPA has decided to use SBA’s mentor-protégé program to reduce redundancy and increase efficiencies. Therefore, EPAAR 1519.203, EPAAR 1552.219-70, and EPAAR 1552.219–71 are removed because they are obsolete.

Comments on this direct final rule must be submitted no later than July 23, 2018, identified as “Docket ID No. EPA–HQ– OARM–2018–0165,” by the Federal eRulemaking Portal: http://www.regulations.gov, If adverse comments are received, EPA will publish a timely withdrawal of the rule. Otherwise, the rule will go into effect September 19, 2018.

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