Huawei Ban's Scope Spares Few Contractors From Headaches
Government Contracts Partner Eric Crusius was quoted in a Law360 article about a new rule banning federal contractors' use of certain Chinese technologies. The rule contains few exemptions, and its broad scope affects even low-value and commercial deals that are typically only lightly regulated. It covers contracts that are typically exempt from much of the red tape that applies to federal acquisitions, such as purchases below $10,000 and commercial off-the-shelf items. It also applies to systems that contractors use for commercial business, even if that commercial arm never does government work.
"I think that's the thing that is a bit startling about this," said Mr. Crusius said. "Although not completely unexpected, no contractor will be immune from this and no contract is immune from this, [even] everyday items that the government buys that companies that don't think of themselves as government contractors sell."