Federal Acquisition Regulation; Use of Products and Services of Kaspersky Lab, 28141-28145 [2018-12847]
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Federal Register / Vol. 83, No. 116 / Friday, June 15, 2018 / Rules and Regulations
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 4, 13, 39, and 52
[FAC 2005–99; FAR Case 2018–010;
Item I; Docket 2018–0010, Sequence 1]
RIN 9000–AN64
Federal Acquisition Regulation; Use of
Products and Services of Kaspersky
Lab
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Interim rule.
AGENCY:
DoD, GSA, and NASA are
issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to
implement a section of the National
Defense Authorization Act for Fiscal
Year 2018.
DATES:
Effective Date: July 16, 2018.
Applicability Dates:
• Contracting officers shall include
the clause at FAR 52.204–23,
Prohibition on Contracting for
Hardware, Software, and Services
Developed or Provided by Kaspersky
Lab or Other Covered Entities—
• In solicitations issued on or after
July 16, 2018, and resultant contracts;
and
• In solicitations issued before July
16, 2018, provided award of the
resulting contract(s) occurs on or after
July 16, 2018.
• Contracting officers shall modify, in
accordance with FAR 1.108(d)(3),
existing indefinite-delivery contracts to
include the FAR clause for future
orders, prior to placing any further
orders on or after July 16, 2018.
• If modifying an existing contract to
extend the period of performance by
more than 6 months, contracting officers
should include the clause in accordance
with 1.108(d).
Comment Date: Interested parties
should submit written comments to the
Regulatory Secretariat on or before
August 14, 2018 to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments
identified by FAC 2005–99, FAR Case
2018–010, by any of the following
methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
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SUMMARY:
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searching for ‘‘FAR Case 2018–010’’.
Select the link ‘‘Submit a Comment’’
that corresponds with ‘‘FAR Case 2018–
010.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘FAR Case 2018–
010’’ on your attached document.
• Mail: General Services
Administration, Regulatory Secretariat
(MVCB), ATTN: Lois Mandell, 1800 F
Street NW, 2nd Floor, Washington, DC
20405–0001.
Instructions: Please submit comments
only and cite FAC 2005–99, FAR Case
2018–010, in all correspondence related
to this case. All comments received will
be posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT: Ms.
Camara Francis, Procurement Analyst,
at 202–550–0935, for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat at 202–501–
4755. Please cite FAC 2005–99, FAR
Case 2018–010.
SUPPLEMENTARY INFORMATION:
I. Background
This interim rule revises the FAR to
implement section 1634 of Division A of
the National Defense Authorization Act
(NDAA) for Fiscal Year (FY) 2018 (Pub.
L. 115–91). Section 1634 of this law
prohibits the use of hardware, software,
and services of Kaspersky Lab and its
related entities by the Federal
Government on or after October 1, 2018.
Implementation of this rule in the
FAR should not impact or impair any
other planned or ongoing efforts
agencies may undertake to implement
section 1634 of Division A of the NDAA
for FY 2018, including consideration by
agencies of the presence of hardware,
software, or services developed or
provided by Kaspersky Lab as a
technical evaluation factor in the source
selection process.
II. Discussion and Analysis
This rule amends FAR part 4, adding
a new subpart 4.20, Prohibition on
Contracting for Hardware, Software, and
Services Developed or Provided by
Kaspersky Lab, with a corresponding
new contract clause at 52.204–23,
Prohibition on Contracting for
Hardware, Software, and Services
Developed or Provided by Kaspersky
Lab and Other Covered Entities. The
rule also adds text in subpart 13.2,
Actions at or Below the Micro-Purchase
Threshold, to address section 1634 with
regard to micro-purchases.
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28141
To implement section 1634, the
clause at 52.204–23 prohibits
contractors from providing any
hardware, software, or services
developed or provided by Kaspersky
Lab or its related entities, or using any
such hardware, software, or services in
the development of data or deliverables
first produced in the performance of the
contract. The contractor must also
report any such hardware, software, or
services discovered during contract
performance; this requirement flows
down to subcontractors. For clarity, the
rule defines ‘‘covered entity’’ and
‘‘covered article.’’ A covered entity
includes the entities described in
section 1634. A covered article includes
hardware, software, or services that the
Federal Government will use on or after
October 1, 2018.
As the Government considers
additional actions to implement section
1634, DoD, GSA, and NASA especially
welcome input on steps that the
Government could take to better identify
and reduce the burden on contractors
related to identifying covered articles.
For example:
• Is the prohibition scoped
appropriately to protect the Government
by including situations in which
covered articles may be used in the
development of data or deliverables first
produced during contract performance,
for example, under a systems
development contract?
• Are the Government’s analysis and
estimates in sections VI and VII,
including the estimate that 5 percent of
contractors would be required to submit
reports in accordance with the clause,
reasonable? How could these estimates
be improved?
• If the Government were to consider
establishing a list to publicly share
information regarding products
identified as meeting the definition of a
covered article (i.e., excluded products),
including those offered by third parties:
• What protocols should the
Government apply prior to placing a
product on the excluded list (e.g., who
should be reaching out, and to whom)?
• Should different protocols apply
depending on whether the product is
made by the original equipment
manufacturer, sold by a reseller, or
customized by a firm?
• When is it appropriate to leave a
product on the excluded list indefinitely
(e.g., to provide notice for those who
have previously acquired the product)?
• Are there steps that the
Government can take to avoid
inappropriately affecting the producer’s
interests (e.g., allowing the firm to
demonstrate that there is a new version
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of the product that is free from concern
and annotating the list accordingly)?
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold and for Commercial Items,
Including Commercially Available Offthe-Shelf Items
This rule adds a new contract clause
at 52.204–23, Prohibition on Contracting
for Hardware, Software, and Services
Developed or Provided by Kaspersky
Lab and Other Covered Entities, in order
to implement section 1634 of the NDAA
for FY 2018. Section 1634 of this law
prohibits the use of hardware, software,
and services developed or provided by
Kaspersky Lab and related entities by
the Federal Government on or after
October 1, 2018.
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A. Applicability to Contracts at or Below
the Simplified Acquisition Threshold
41 U.S.C. 1905 governs the
applicability of laws to acquisitions at
or below the simplified acquisition
threshold (SAT). Section 1905 generally
limits the applicability of new laws
when agencies are making acquisitions
at or below the SAT, but provides that
such acquisitions will not be exempt
from a provision of law if: (i) The law
contains criminal or civil penalties; (ii)
the law specifically refers to 41 U.S.C.
1905 and states that the law applies to
contracts and subcontracts in amounts
not greater than the SAT; or (iii) the
FAR Council makes a written
determination and finding that it would
not be in the best interest of the Federal
Government to exempt contracts and
subcontracts in amounts not greater
than the SAT from the provision of law.
B. Applicability to Contracts for the
Acquisition of Commercial Items,
Including Commercially Available Offthe-Shelf Items
41 U.S.C. 1906 governs the
applicability of laws to contracts for the
acquisition of commercial items, and is
intended to limit the applicability of
laws to contracts for the acquisition of
commercial items. Section 1906
provides that if a provision of law
contains criminal or civil penalties, or if
the FAR Council makes a written
determination that it is not in the best
interest of the Federal Government to
exempt commercial item contracts, the
provision of law will apply to contracts
for the acquisition of commercial items.
Finally, 41 U.S.C. 1907 states that
acquisitions of commercially available
off-the-shelf (COTS) items will be
exempt from a provision of law unless
the law (i) contains criminal or civil
penalties; (ii) specifically refers to 41
U.S.C. 1907 and states that the law
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applies to acquisitions of COTS items;
(iii) concerns authorities or
responsibilities under the Small
Business Act (15 U.S.C. 644) or bid
protest procedures developed under the
authority of 31 U.S.C. 3551 et seq., 10
U.S.C. 2305(e) and (f), or 41 U.S.C. 3706
and 3707; or (iv) the Administrator for
Federal Procurement Policy makes a
written determination and finding that
it would not be in the best interest of the
Federal Government to exempt contracts
for the procurement of COTS items from
the provision of law.
C. Determinations
The FAR Council has determined that
it is in the best interest of the
Government to apply the rule to
contracts at or below the SAT and for
the acquisition of commercial items.
The Administrator for Federal
Procurement Policy has determined that
it is in the best interest of the
Government to apply this rule to
contracts for the acquisition of COTS
items.
While the law does not specifically
address acquisitions of commercial
items, including COTS items, there is an
unacceptable level of risk for the
Government in buying hardware,
software, or services developed or
provided in whole or in part by
Kaspersky Lab. This level of risk is not
alleviated by the fact that the item being
acquired has been sold or offered for
sale to the general public, either in the
same form or a modified form as sold to
the Government (i.e., that it is a
commercial item or COTS item), nor by
the small size of the purchase (i.e., at or
below the SAT). As a result, agencies
may face increased exposure for
violating the law and unknowingly
acquiring a covered article absent
coverage of these types of acquisitions
by this rule.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This rule has been
designated a ‘‘significant regulatory
action’’ under Executive Order 12866.
Accordingly, the Office of Management
and Budget (OMB) has reviewed this
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rule. This rule is not a major rule under
5 U.S.C. 804.
V. Executive Order 13771
This rule is not subject to the
requirements of E.O. 13771 because the
rule is issued with respect to a national
security function of the United States.
VI. Regulatory Flexibility Act
The change may have a significant
economic impact on a substantial
number of small entities within the
meaning of the Regulatory Flexibility
Act 5 U.S.C. 601 et seq. The Initial
Regulatory Flexibility Analysis (IRFA) is
summarized as follows:
The objective of the rule is to prescribe
appropriate policies and procedures to
enable agencies to determine and ensure that
they are not purchasing products and
services of Kaspersky Lab and its related
entities for use by the Government on or after
October 1, 2018. The legal basis for the rule
is section 1634 of the NDAA for FY 2018,
which prohibits Government use of such
products on or after that date.
Data from the Federal Procurement Data
System (FPDS) for FY 2017 has been used as
the basis for estimating the number of
contractors that may be affected by this rule.
Approximately 97,632 unique entities
received new awards in Fiscal Year (FY)
2017. Of these entities, 72,447 (74 percent)
unique small entities received awards during
2017. It is estimated that the reports required
by this rule will be submitted by 5 percent
of contractors, or 3,623 small entities.
The rule requires contractors and
subcontractors that are subject to the clause
to report to the contracting officer, or for
DoD, to the website listed in the clause, any
discovery of a covered article during the
course of contract performance.
The rule does not duplicate, overlap, or
conflict with any other Federal rules.
Because of the nature of the prohibition
enacted by section 1634, it is not possible to
establish different compliance or reporting
requirements or timetables that take into
account the resources available to small
entities or to exempt small entities from
coverage of the rule, or any part thereof. DoD,
GSA, and NASA were unable to identify any
alternatives that would reduce the burden on
small entities and still meet the objectives of
section 1634.
The Regulatory Secretariat has
submitted a copy of the IRFA to the
Chief Counsel for Advocacy of the Small
Business Administration. A copy of the
IRFA may be obtained from the
Regulatory Secretariat. DoD, GSA, and
NASA invite comments from small
business concerns and other interested
parties on the expected impact of this
rule on small entities.
DoD, GSA, and NASA will also
consider comments from small entities
concerning the existing regulations in
subparts affected by this rule in
accordance with 5 U.S.C. 610. Interested
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parties must submit such comments
separately and should cite 5 U.S.C. 610
(FAR Case 2018–010) in
correspondence.
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VII. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (PRA) provides
that an agency generally cannot conduct
or sponsor a collection of information,
and no person is required to respond to
nor be subject to a penalty for failure to
comply with a collection of information,
unless that collection has obtained
Office of Management and Budget
(OMB) approval and displays a
currently valid OMB Control Number.
DoD, GSA, and NASA requested and
OMB authorized emergency processing
of an information collection involved in
this rule, as OMB Control Number
9000–0197, consistent with 5 CFR
1320.13. DoD, GSA, and NASA have
determined the following conditions
have been met:
a. The collection of information is
needed prior to the expiration of time
periods normally associated with a
routine submission for review under the
provisions of the Paperwork Reduction
Act, in view of the deadline for this
provision of the NDAA which was
signed into law in December 2017 and
requires action before the prohibition
goes into effect on October 1, 2018.
b. The collection of information is
essential to the mission of the agencies
to ensure the Federal Government does
not purchase prohibited articles, and
can respond appropriately if any such
articles are not identified until after
delivery or use.
c. The use of normal clearance
procedures would prevent the collection
of information from contractors, for
national security purposes, as discussed
in section VIII of this preamble.
Passage of the omnibus
appropriations bill and the availability
of additional funding for FY 18 has
increased agency purchasing activity,
and the information to be collected is
necessary to ensure that this purchasing
is done responsibly and consistent with
national security.
Moreover, DoD, GSA, and NASA
cannot comply with the normal
clearance procedures because public
harm is reasonably likely to result if
current clearance procedures are
followed. Not only would agencies be
more likely to purchase and install
prohibited items, but even if such items
were identified prior to the October 1
date, agencies would incur substantial
additional costs replacing such items, as
well as additional administrative costs
for reprocurement.
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DoD, GSA, and NASA intend to
provide separate 60-day notice in the
Federal Register requesting public
comment on the information collection
contained within this rule.
Agency: DoD, GSA, and NASA.
Type of Information Collection: New
Collection.
Title of Collection: Use of Products
and Services of Kaspersky Lab.
Affected Public: Private Sector—
Business.
Total Estimated Number of
Respondents: 4,882.
Average Responses per Respondents:
5.
Total Estimated Number of
Responses: 24,410.
Average Time per Response: 1.5 hour.
Total Annual Time Burden: 36,615.
OMB Control Number: 9000–0197.
The public reporting burden for this
collection of information consists of
reports of identified covered articles
during contract performance as required
by 52.204–23. Reports are estimated to
average 1.5 hour per response, including
the time for reviewing definitions,
searching existing data sources,
gathering and maintaining the data
needed, and completing and reviewing
the report.
The subsequent 60-day notice
published by DoD, GSA, and NASA will
invite public comments.
VIII. Determination To Issue an Interim
Rule
A determination has been made under
the authority of the Secretary of Defense
(DoD), Administrator of General
Services (GSA), and the Administrator
of the National Aeronautics and Space
Administration (NASA) that urgent and
compelling reasons exist to promulgate
this interim rule without prior
opportunity for public comment. It is
critical that the FAR is immediately
revised to include the requirements of
the law, which prohibits the Federal
Government from using hardware,
software, or services of Kaspersky Lab
and its related entities on or after
October 1, 2018.
Although this prohibition does not
apply until October 1, 2018, agencies
and contractors must begin to take steps
immediately to meet this deadline. In
this regard, covered articles include
hardware, software, and services
acquired before October 1, 2018, that the
Federal Government will use on or after
October 1, 2018. Because so many IT
products and services are used for more
than a few months, it is critical that
contractors be placed on notice as soon
as possible of this prohibition so that
agencies can ensure that they comply
with the law and avoid acquisitions of
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covered articles that the Government
will continue to use on or after October
1, 2018. Pursuant to 41 U.S.C. 1707 and
FAR 1.501–3(b), DoD, GSA, and NASA
will consider public comments received
in response to this interim rule in the
formation of the final rule.
List of Subject in 48 CFR Parts 1, 4, 13,
39, and 52
Government procurement.
Dated: June 7, 2018.
William F. Clark,
Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA
amend 48 CFR parts 1, 4, 13, 39, and 52
as set forth below:
■ 1. The authority citation for 48 CFR
parts 1, 4, 13, 39, and 52 continues to
read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
PART 1—FEDERAL ACQUISITION
REGULATIONS SYSTEM
1.106
[Amended]
2. Amend section 1.106 by adding to
the table, in numerical sequence, FAR
segment ‘‘52.204–23’’ and its
corresponding OMB control number
‘‘9000–0197’’.
■
PART 4—ADMINISTRATIVE MATTERS
■
3. Add subpart 4.20 to read as follows:
SUBPART 4.20—PROHIBITION ON
CONTRACTING FOR HARDWARE,
SOFTWARE, AND SERVICES
DEVELOPED OR PROVIDED BY
KASPERSKY LAB
Sec.
4.2001
4.2002
4.2003
4.2004
Definitions.
Prohibition.
Notification.
Contract clause.
SUBPART 4.20—PROHIBITION ON
CONTRACTING FOR HARDWARE,
SOFTWARE, AND SERVICES
DEVELOPED OR PROVIDED BY
KASPERSKY LAB
4.2001
Definitions
As used in this subpart—
Covered article means any hardware,
software, or service that—
(1) Is developed or provided by a
covered entity;
(2) Includes any hardware, software,
or service developed or provided in
whole or in part by a covered entity; or
(3) Contains components using any
hardware or software developed in
whole or in part by a covered entity.
Covered entity means—
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(1) Kaspersky Lab;
(2) Any successor entity to Kaspersky
Lab;
(3) Any entity that controls, is
controlled by, or is under common
control with Kaspersky Lab; or
(4) Any entity of which Kaspersky Lab
has a majority ownership.
4.2002
Prohibition.
Section 1634 of Division A of the
National Defense Authorization Act for
Fiscal Year 2018 (Pub. L. 115–91)
prohibits Government use on or after
October 1, 2018, of any hardware,
software, or services developed or
provided, in whole or in part, by a
covered entity. Contractors are
prohibited from—
(a) Providing any covered article that
the Government will use on or after
October 1, 2018; and
(b) Using any covered article on or
after October 1, 2018, in the
development of data or deliverables first
produced in the performance of the
contract.
4.2003
Notification.
When a contractor provides
notification pursuant to 52.204–23,
follow agency procedures.
4.2004
Contract clause.
The contracting officer shall insert the
clause at 52.204–23, Prohibition on
Contracting for Hardware, Software, and
Services Developed or Provided by
Kaspersky Lab and Other Covered
Entities, in all solicitations and
contracts.
PART 13—SIMPLIFIED ACQUISITION
PROCEDURES
4. Amend section 13.201 by adding
paragraph (i) to read as follows:
■
13.201
General.
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(i) Do not purchase any hardware,
software, or services developed or
provided by Kaspersky Lab that the
Government will use on or after October
1, 2018. (See 4.2002.)
PART 39—ACQUISITION OF
INFORMATION TECHNOLOGY
5. Amend section 39.101 by adding
paragraph (e) to read as follows:
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■
39.101
Policy.
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(e) Contracting officers shall not
purchase any hardware, software, or
services developed or provided by
Kaspersky Lab that the Government will
use on or after October 1, 2018. (See
4.2002.)
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PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
6. Add section 52.204–23 to read as
follows:
■
52.204–23 Prohibition on Contracting for
Hardware, Software, and Services
Developed or Provided by Kaspersky Lab
and Other Covered Entities.
As prescribed in 4.2004, insert the
following clause:
Prohibition on Contracting for
Hardware, Software, and Services
Developed or Provided by Kaspersky
Lab and Other Covered Entities (Jul
2018)
(a) Definitions. As used in this clause—
Covered article means any hardware,
software, or service that—
(1) Is developed or provided by a covered
entity;
(2) Includes any hardware, software, or
service developed or provided in whole or in
part by a covered entity; or
(3) Contains components using any
hardware or software developed in whole or
in part by a covered entity.
Covered entity means—
(1) Kaspersky Lab;
(2) Any successor entity to Kaspersky Lab;
(3) Any entity that controls, is controlled
by, or is under common control with
Kaspersky Lab; or
(4) Any entity of which Kaspersky Lab has
a majority ownership.
(b) Prohibition. Section 1634 of Division A
of the National Defense Authorization Act for
Fiscal Year 2018 (Pub. L. 115–91) prohibits
Government use of any covered article. The
Contractor is prohibited from—
(1) Providing any covered article that the
Government will use on or after October 1,
2018; and
(2) Using any covered article on or after
October 1, 2018, in the development of data
or deliverables first produced in the
performance of the contract.
(c) Reporting requirement. (1) In the event
the Contractor identifies a covered article
provided to the Government during contract
performance, or the Contractor is notified of
such by a subcontractor at any tier or any
other source, the Contractor shall report, in
writing, to the Contracting Officer or, in the
case of the Department of Defense, to the
website at https://dibnet.dod.mil. For
indefinite delivery contracts, the Contractor
shall report to the Contracting Officer for the
indefinite delivery contract and the
Contracting Officer(s) for any affected order
or, in the case of the Department of Defense,
identify both the indefinite delivery contract
and any affected orders in the report
provided at https://dibnet.dod.mil.
(2) The Contractor shall report the
following information pursuant to paragraph
(c)(1) of this clause:
(i) Within 1 business day from the date of
such identification or notification: The
contract number; the order number(s), if
applicable; supplier name; brand; model
number (Original Equipment Manufacturer
(OEM) number, manufacturer part number, or
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wholesaler number); item description; and
any readily available information about
mitigation actions undertaken or
recommended.
(ii) Within 10 business days of submitting
the report pursuant to paragraph (c)(1) of this
clause: Any further available information
about mitigation actions undertaken or
recommended. In addition, the Contractor
shall describe the efforts it undertook to
prevent use or submission of a covered
article, any reasons that led to the use or
submission of the covered article, and any
additional efforts that will be incorporated to
prevent future use or submission of covered
articles.
(d) Subcontracts. The Contractor shall
insert the substance of this clause, including
this paragraph (d), in all subcontracts,
including subcontracts for the acquisition of
commercial items.
(End of clause)
■ 7. Amend section 52.212–5 by—
■ a. Revising the date of the clause;
■ b. Redesignating paragraphs (a)(2)
through (4) as paragraphs (a)(3) through
(5), respectively, and adding a new
paragraph (a)(2);
■ c. Redesignating paragraphs (e)(1)(iii)
through (xxi) as paragraphs (e)(1)(iv)
through (xxii), respectively, and adding
a new paragraph (e)(1)(iii); and
■ d. In Alternate II:
■ i. Revising the date of the alternate;
and
■ ii. Redesignating paragraphs
(e)(1)(ii)(C) through (S) as paragraphs
(e)(1)(ii)(D) through (T), respectively,
and adding a new paragraph (e)(1)(ii)(C).
The revisions and additions read as
follows:
52.212–5 Contract Terms and Conditions
Required To Implement Statutes or
Executive Orders—Commercial Items.
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*
*
*
Contract Terms and Conditions
Required To Implement Statutes or
Executive Orders—Commercial Items
(Jul 2018)
*
*
*
*
*
(a) * * *
____ (2) 52.204–23, Prohibition on
Contracting for Hardware, Software, and
Services Developed or Provided by
Kaspersky Lab and Other Covered Entities
(Jul 2018) (Section 1634 of Pub. L. 115–91).
*
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*
*
(e)(1) * * *
(iii) 52.204–23, Prohibition on Contracting
for Hardware, Software, and Services
Developed or Provided by Kaspersky Lab and
Other Covered Entities (Jul 2018) (Section
1634 of Pub. L. 115–91).
*
*
*
*
*
Alternate II (Jul 2018). * * *
*
*
*
*
*
(e)(1) * * *
(ii) * * *
(C) 52.204–23, Prohibition on Contracting
for Hardware, Software, and Services
E:\FR\FM\15JNR2.SGM
15JNR2
Federal Register / Vol. 83, No. 116 / Friday, June 15, 2018 / Rules and Regulations
Developed or Provided by Kaspersky Lab and
Other Covered Entities (Jul 2018) (Section
1634 of Pub. L. 115–91).
*
*
*
*
*
■ 8. Amend section 52.213–4 by—
■ a. Revising the date of the clause; and
■ b. Redesignating paragraphs (a)(1)(ii)
through (vii) as paragraphs (a)(1)(iii)
through (viii), respectively, and adding
a new paragraph (a)(1)(ii).
The revision and addition read as
follows:
52.213–4 Terms and Conditions—
Simplified Acquisitions (Other Than
Commercial Items).
*
*
*
*
*
*
*
*
*
*
9. Amend section 52.244–6 by—
■ a. Revising the date of the clause;
■ b. Redesignating paragraphs (c)(1)(iv)
through (xviii) as paragraphs (c)(1)(v)
through (xix), respectively, and adding
a new paragraph (c)(1)(iv).
The revision and addition read as
follows:
■
*
Subcontracts for Commercial
*
*
*
Subcontracts for Commercial Items (Jul
2018)
*
*
*
*
*
(c)(1) * * *
(iv) 52.204–23, Prohibition on Contracting
for Hardware, Software, and Services
Developed or Provided by Kaspersky Lab and
Other Covered Entities (Jul 2018) (Section
1634 of Pub. L. 115–91).
*
*
*
*
*
[FR Doc. 2018–12847 Filed 6–14–18; 8:45 am]
sradovich on DSK3GMQ082PROD with RULES2
BILLING CODE 6820–EP–P
VerDate Sep<11>2014
18:39 Jun 14, 2018
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 9, 12, 13, and 52
[FAC 2005–99; FAR Case 2017–018;
Item II; Docket No. 2017–0018, Sequence
No. 1]
RIN 9000–AN57
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Interim rule.
AGENCY:
(a) * * *
(1) * * *
(ii) 52.204–23, Prohibition on Contracting
for Hardware, Software, and Services
Developed or Provided by Kaspersky Lab and
Other Covered Entities (Jul 2018) (Section
1634 of Pub. L. 115–91).
*
GENERAL SERVICES
ADMINISTRATION
Federal Acquisition Regulation:
Violations of Arms Control Treaties or
Agreements With the United States
Terms and Conditions—Simplified
Acquisitions (Other than Commercial
Items) (Jul 2018)
52.244–6
Items.
DEPARTMENT OF DEFENSE
Jkt 244001
DoD, GSA, and NASA are
issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to
implement a section of the National
Defense Authorization Act for Fiscal
Year 2017 that addresses measures
against persons involved in activities
that violate arms control treaties or
agreements with the United States.
DATES:
Effective: June 15, 2018.
Comment Date: Interested parties
should submit written comments to the
Regulatory Secretariat Division at one of
the addresses shown below on or before
August 14, 2018 to be considered in the
formation of the final rule.
ADDRESSES: Submit comments in
response to FAC 2005–99, FAR Case
2017–018, by any of the following
methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
searching for ‘‘FAR Case 2017–018.’’
Select the link ‘‘Comment Now’’ that
corresponds with ‘‘FAR Case 2017–
018.’’ Follow the instructions provided
on the screen. Please include your
name, company name (if any), and
‘‘FAR Case 2017–018’’ on your attached
document.
• Mail: General Services
Administration, Regulatory Secretariat
Division (MVCB), ATTN: Ms. Lois
Mandell, 1800 F Street NW, 2nd Floor,
Washington, DC 20405.
Instructions: Please submit comments
only and cite FAC 2005–99, FAR Case
2017–018, in all correspondence related
to this case. All comments received will
be posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
SUMMARY:
PO 00000
Frm 00007
Fmt 4701
Sfmt 4700
28145
information provided. To confirm
receipt of your comment(s), please
check www.regulations.gov,
approximately two to three days after
submission to verify posting (except
allow 30 days for posting of comments
submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms.
Cecelia L. Davis, Procurement Analyst,
at 202–219–0202 for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat Division at
202–501–4755. Please cite FAC 2005–
99, FAR Case 2017–018.
SUPPLEMENTARY INFORMATION:
I. Background
This interim rule amends the FAR to
implement a section of the National
Defense Authorization Act (NDAA) for
Fiscal Year 2017 that addresses
measures against persons involved in
activities that violate arms control
treaties or agreements with the United
States. This rule amends FAR part 9,
Contractor Qualifications, and adds a
provision at FAR 52.209–13 to
implement section 1290 of the National
Defense Authorization Act for Fiscal
Year 2017 (Pub. L. 114–328), codified at
22 U.S.C. 2593e.
The President submits annually to
Congress a report prepared by the
Secretary of State with the concurrence
of the Director of Central Intelligence
and in consultation with the Secretary
of Defense, the Secretary of Energy, and
the Chairman of the Joint Chiefs of Staff,
on the status of United States policy and
actions with respect to arms control,
nonproliferation, and disarmament,
pursuant to section 403 of the Arms
Control and Disarmament Act (22 U.S.C.
2593a). In this report, the Secretary of
State assesses adherence to and
compliance with arms control,
nonproliferation, and disarmament
agreements and commitments by the
United States and other countries. This
report is submitted in unclassified form,
with classified annexes, as appropriate.
The Department of State’s most recent
unclassified report submitted in April
2018 to Congress is available at https://
www.state.gov/t/avc/rls/rpt/.
The Secretary of the Treasury is
required to submit to the appropriate
Congressional committees a report,
consistent with the protection of
intelligence sources and methods,
identifying every person with respect to
whom there is credible information
indicating that the person is—
• An individual who is a citizen,
national, or permanent resident of, or an
entity organized under the laws of, a
noncompliant country; and
E:\FR\FM\15JNR2.SGM
15JNR2
Agencies
[Federal Register Volume 83, Number 116 (Friday, June 15, 2018)]
[Rules and Regulations]
[Pages 28141-28145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12847]
[[Page 28141]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1, 4, 13, 39, and 52
[FAC 2005-99; FAR Case 2018-010; Item I; Docket 2018-0010, Sequence 1]
RIN 9000-AN64
Federal Acquisition Regulation; Use of Products and Services of
Kaspersky Lab
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to implement a section of the
National Defense Authorization Act for Fiscal Year 2018.
DATES:
Effective Date: July 16, 2018.
Applicability Dates:
Contracting officers shall include the clause at FAR
52.204-23, Prohibition on Contracting for Hardware, Software, and
Services Developed or Provided by Kaspersky Lab or Other Covered
Entities--
In solicitations issued on or after July 16, 2018, and
resultant contracts; and
In solicitations issued before July 16, 2018, provided
award of the resulting contract(s) occurs on or after July 16, 2018.
Contracting officers shall modify, in accordance with FAR
1.108(d)(3), existing indefinite-delivery contracts to include the FAR
clause for future orders, prior to placing any further orders on or
after July 16, 2018.
If modifying an existing contract to extend the period of
performance by more than 6 months, contracting officers should include
the clause in accordance with 1.108(d).
Comment Date: Interested parties should submit written comments to
the Regulatory Secretariat on or before August 14, 2018 to be
considered in the formulation of a final rule.
ADDRESSES: Submit comments identified by FAC 2005-99, FAR Case 2018-
010, by any of the following methods:
Regulations.gov: https://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by searching for ``FAR Case
2018-010''. Select the link ``Submit a Comment'' that corresponds with
``FAR Case 2018-010.'' Follow the instructions provided at the ``Submit
a Comment'' screen. Please include your name, company name (if any),
and ``FAR Case 2018-010'' on your attached document.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), ATTN: Lois Mandell, 1800 F Street NW, 2nd Floor,
Washington, DC 20405-0001.
Instructions: Please submit comments only and cite FAC 2005-99, FAR
Case 2018-010, in all correspondence related to this case. All comments
received will be posted without change to https://www.regulations.gov,
including any personal and/or business confidential information
provided.
FOR FURTHER INFORMATION CONTACT: Ms. Camara Francis, Procurement
Analyst, at 202-550-0935, for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat at 202-501-4755. Please cite FAC 2005-99, FAR Case 2018-
010.
SUPPLEMENTARY INFORMATION:
I. Background
This interim rule revises the FAR to implement section 1634 of
Division A of the National Defense Authorization Act (NDAA) for Fiscal
Year (FY) 2018 (Pub. L. 115-91). Section 1634 of this law prohibits the
use of hardware, software, and services of Kaspersky Lab and its
related entities by the Federal Government on or after October 1, 2018.
Implementation of this rule in the FAR should not impact or impair
any other planned or ongoing efforts agencies may undertake to
implement section 1634 of Division A of the NDAA for FY 2018, including
consideration by agencies of the presence of hardware, software, or
services developed or provided by Kaspersky Lab as a technical
evaluation factor in the source selection process.
II. Discussion and Analysis
This rule amends FAR part 4, adding a new subpart 4.20, Prohibition
on Contracting for Hardware, Software, and Services Developed or
Provided by Kaspersky Lab, with a corresponding new contract clause at
52.204-23, Prohibition on Contracting for Hardware, Software, and
Services Developed or Provided by Kaspersky Lab and Other Covered
Entities. The rule also adds text in subpart 13.2, Actions at or Below
the Micro-Purchase Threshold, to address section 1634 with regard to
micro-purchases.
To implement section 1634, the clause at 52.204-23 prohibits
contractors from providing any hardware, software, or services
developed or provided by Kaspersky Lab or its related entities, or
using any such hardware, software, or services in the development of
data or deliverables first produced in the performance of the contract.
The contractor must also report any such hardware, software, or
services discovered during contract performance; this requirement flows
down to subcontractors. For clarity, the rule defines ``covered
entity'' and ``covered article.'' A covered entity includes the
entities described in section 1634. A covered article includes
hardware, software, or services that the Federal Government will use on
or after October 1, 2018.
As the Government considers additional actions to implement section
1634, DoD, GSA, and NASA especially welcome input on steps that the
Government could take to better identify and reduce the burden on
contractors related to identifying covered articles. For example:
Is the prohibition scoped appropriately to protect the
Government by including situations in which covered articles may be
used in the development of data or deliverables first produced during
contract performance, for example, under a systems development
contract?
Are the Government's analysis and estimates in sections VI
and VII, including the estimate that 5 percent of contractors would be
required to submit reports in accordance with the clause, reasonable?
How could these estimates be improved?
If the Government were to consider establishing a list to
publicly share information regarding products identified as meeting the
definition of a covered article (i.e., excluded products), including
those offered by third parties:
What protocols should the Government apply prior to
placing a product on the excluded list (e.g., who should be reaching
out, and to whom)?
Should different protocols apply depending on whether the
product is made by the original equipment manufacturer, sold by a
reseller, or customized by a firm?
When is it appropriate to leave a product on the excluded
list indefinitely (e.g., to provide notice for those who have
previously acquired the product)?
Are there steps that the Government can take to avoid
inappropriately affecting the producer's interests (e.g., allowing the
firm to demonstrate that there is a new version
[[Page 28142]]
of the product that is free from concern and annotating the list
accordingly)?
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This rule adds a new contract clause at 52.204-23, Prohibition on
Contracting for Hardware, Software, and Services Developed or Provided
by Kaspersky Lab and Other Covered Entities, in order to implement
section 1634 of the NDAA for FY 2018. Section 1634 of this law
prohibits the use of hardware, software, and services developed or
provided by Kaspersky Lab and related entities by the Federal
Government on or after October 1, 2018.
A. Applicability to Contracts at or Below the Simplified Acquisition
Threshold
41 U.S.C. 1905 governs the applicability of laws to acquisitions at
or below the simplified acquisition threshold (SAT). Section 1905
generally limits the applicability of new laws when agencies are making
acquisitions at or below the SAT, but provides that such acquisitions
will not be exempt from a provision of law if: (i) The law contains
criminal or civil penalties; (ii) the law specifically refers to 41
U.S.C. 1905 and states that the law applies to contracts and
subcontracts in amounts not greater than the SAT; or (iii) the FAR
Council makes a written determination and finding that it would not be
in the best interest of the Federal Government to exempt contracts and
subcontracts in amounts not greater than the SAT from the provision of
law.
B. Applicability to Contracts for the Acquisition of Commercial Items,
Including Commercially Available Off-the-Shelf Items
41 U.S.C. 1906 governs the applicability of laws to contracts for
the acquisition of commercial items, and is intended to limit the
applicability of laws to contracts for the acquisition of commercial
items. Section 1906 provides that if a provision of law contains
criminal or civil penalties, or if the FAR Council makes a written
determination that it is not in the best interest of the Federal
Government to exempt commercial item contracts, the provision of law
will apply to contracts for the acquisition of commercial items.
Finally, 41 U.S.C. 1907 states that acquisitions of commercially
available off-the-shelf (COTS) items will be exempt from a provision of
law unless the law (i) contains criminal or civil penalties; (ii)
specifically refers to 41 U.S.C. 1907 and states that the law applies
to acquisitions of COTS items; (iii) concerns authorities or
responsibilities under the Small Business Act (15 U.S.C. 644) or bid
protest procedures developed under the authority of 31 U.S.C. 3551 et
seq., 10 U.S.C. 2305(e) and (f), or 41 U.S.C. 3706 and 3707; or (iv)
the Administrator for Federal Procurement Policy makes a written
determination and finding that it would not be in the best interest of
the Federal Government to exempt contracts for the procurement of COTS
items from the provision of law.
C. Determinations
The FAR Council has determined that it is in the best interest of
the Government to apply the rule to contracts at or below the SAT and
for the acquisition of commercial items. The Administrator for Federal
Procurement Policy has determined that it is in the best interest of
the Government to apply this rule to contracts for the acquisition of
COTS items.
While the law does not specifically address acquisitions of
commercial items, including COTS items, there is an unacceptable level
of risk for the Government in buying hardware, software, or services
developed or provided in whole or in part by Kaspersky Lab. This level
of risk is not alleviated by the fact that the item being acquired has
been sold or offered for sale to the general public, either in the same
form or a modified form as sold to the Government (i.e., that it is a
commercial item or COTS item), nor by the small size of the purchase
(i.e., at or below the SAT). As a result, agencies may face increased
exposure for violating the law and unknowingly acquiring a covered
article absent coverage of these types of acquisitions by this rule.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This rule has been designated a ``significant regulatory action'' under
Executive Order 12866. Accordingly, the Office of Management and Budget
(OMB) has reviewed this rule. This rule is not a major rule under 5
U.S.C. 804.
V. Executive Order 13771
This rule is not subject to the requirements of E.O. 13771 because
the rule is issued with respect to a national security function of the
United States.
VI. Regulatory Flexibility Act
The change may have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act 5 U.S.C. 601 et seq. The Initial Regulatory Flexibility
Analysis (IRFA) is summarized as follows:
The objective of the rule is to prescribe appropriate policies
and procedures to enable agencies to determine and ensure that they
are not purchasing products and services of Kaspersky Lab and its
related entities for use by the Government on or after October 1,
2018. The legal basis for the rule is section 1634 of the NDAA for
FY 2018, which prohibits Government use of such products on or after
that date.
Data from the Federal Procurement Data System (FPDS) for FY 2017
has been used as the basis for estimating the number of contractors
that may be affected by this rule. Approximately 97,632 unique
entities received new awards in Fiscal Year (FY) 2017. Of these
entities, 72,447 (74 percent) unique small entities received awards
during 2017. It is estimated that the reports required by this rule
will be submitted by 5 percent of contractors, or 3,623 small
entities.
The rule requires contractors and subcontractors that are
subject to the clause to report to the contracting officer, or for
DoD, to the website listed in the clause, any discovery of a covered
article during the course of contract performance.
The rule does not duplicate, overlap, or conflict with any other
Federal rules.
Because of the nature of the prohibition enacted by section
1634, it is not possible to establish different compliance or
reporting requirements or timetables that take into account the
resources available to small entities or to exempt small entities
from coverage of the rule, or any part thereof. DoD, GSA, and NASA
were unable to identify any alternatives that would reduce the
burden on small entities and still meet the objectives of section
1634.
The Regulatory Secretariat has submitted a copy of the IRFA to the
Chief Counsel for Advocacy of the Small Business Administration. A copy
of the IRFA may be obtained from the Regulatory Secretariat. DoD, GSA,
and NASA invite comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD, GSA, and NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by this rule
in accordance with 5 U.S.C. 610. Interested
[[Page 28143]]
parties must submit such comments separately and should cite 5 U.S.C.
610 (FAR Case 2018-010) in correspondence.
VII. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA)
provides that an agency generally cannot conduct or sponsor a
collection of information, and no person is required to respond to nor
be subject to a penalty for failure to comply with a collection of
information, unless that collection has obtained Office of Management
and Budget (OMB) approval and displays a currently valid OMB Control
Number.
DoD, GSA, and NASA requested and OMB authorized emergency
processing of an information collection involved in this rule, as OMB
Control Number 9000-0197, consistent with 5 CFR 1320.13. DoD, GSA, and
NASA have determined the following conditions have been met:
a. The collection of information is needed prior to the expiration
of time periods normally associated with a routine submission for
review under the provisions of the Paperwork Reduction Act, in view of
the deadline for this provision of the NDAA which was signed into law
in December 2017 and requires action before the prohibition goes into
effect on October 1, 2018.
b. The collection of information is essential to the mission of the
agencies to ensure the Federal Government does not purchase prohibited
articles, and can respond appropriately if any such articles are not
identified until after delivery or use.
c. The use of normal clearance procedures would prevent the
collection of information from contractors, for national security
purposes, as discussed in section VIII of this preamble.
Passage of the omnibus appropriations bill and the availability of
additional funding for FY 18 has increased agency purchasing activity,
and the information to be collected is necessary to ensure that this
purchasing is done responsibly and consistent with national security.
Moreover, DoD, GSA, and NASA cannot comply with the normal
clearance procedures because public harm is reasonably likely to result
if current clearance procedures are followed. Not only would agencies
be more likely to purchase and install prohibited items, but even if
such items were identified prior to the October 1 date, agencies would
incur substantial additional costs replacing such items, as well as
additional administrative costs for reprocurement.
DoD, GSA, and NASA intend to provide separate 60-day notice in the
Federal Register requesting public comment on the information
collection contained within this rule.
Agency: DoD, GSA, and NASA.
Type of Information Collection: New Collection.
Title of Collection: Use of Products and Services of Kaspersky Lab.
Affected Public: Private Sector--Business.
Total Estimated Number of Respondents: 4,882.
Average Responses per Respondents: 5.
Total Estimated Number of Responses: 24,410.
Average Time per Response: 1.5 hour.
Total Annual Time Burden: 36,615.
OMB Control Number: 9000-0197.
The public reporting burden for this collection of information
consists of reports of identified covered articles during contract
performance as required by 52.204-23. Reports are estimated to average
1.5 hour per response, including the time for reviewing definitions,
searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the report.
The subsequent 60-day notice published by DoD, GSA, and NASA will
invite public comments.
VIII. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DoD), Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. It is
critical that the FAR is immediately revised to include the
requirements of the law, which prohibits the Federal Government from
using hardware, software, or services of Kaspersky Lab and its related
entities on or after October 1, 2018.
Although this prohibition does not apply until October 1, 2018,
agencies and contractors must begin to take steps immediately to meet
this deadline. In this regard, covered articles include hardware,
software, and services acquired before October 1, 2018, that the
Federal Government will use on or after October 1, 2018. Because so
many IT products and services are used for more than a few months, it
is critical that contractors be placed on notice as soon as possible of
this prohibition so that agencies can ensure that they comply with the
law and avoid acquisitions of covered articles that the Government will
continue to use on or after October 1, 2018. Pursuant to 41 U.S.C. 1707
and FAR 1.501-3(b), DoD, GSA, and NASA will consider public comments
received in response to this interim rule in the formation of the final
rule.
List of Subject in 48 CFR Parts 1, 4, 13, 39, and 52
Government procurement.
Dated: June 7, 2018.
William F. Clark,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 4, 13, 39, and
52 as set forth below:
0
1. The authority citation for 48 CFR parts 1, 4, 13, 39, and 52
continues to read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM
1.106 [Amended]
0
2. Amend section 1.106 by adding to the table, in numerical sequence,
FAR segment ``52.204-23'' and its corresponding OMB control number
``9000-0197''.
PART 4--ADMINISTRATIVE MATTERS
0
3. Add subpart 4.20 to read as follows:
SUBPART 4.20--PROHIBITION ON CONTRACTING FOR HARDWARE, SOFTWARE,
AND SERVICES DEVELOPED OR PROVIDED BY KASPERSKY LAB
Sec.
4.2001 Definitions.
4.2002 Prohibition.
4.2003 Notification.
4.2004 Contract clause.
SUBPART 4.20--PROHIBITION ON CONTRACTING FOR HARDWARE, SOFTWARE,
AND SERVICES DEVELOPED OR PROVIDED BY KASPERSKY LAB
4.2001 Definitions
As used in this subpart--
Covered article means any hardware, software, or service that--
(1) Is developed or provided by a covered entity;
(2) Includes any hardware, software, or service developed or
provided in whole or in part by a covered entity; or
(3) Contains components using any hardware or software developed in
whole or in part by a covered entity.
Covered entity means--
[[Page 28144]]
(1) Kaspersky Lab;
(2) Any successor entity to Kaspersky Lab;
(3) Any entity that controls, is controlled by, or is under common
control with Kaspersky Lab; or
(4) Any entity of which Kaspersky Lab has a majority ownership.
4.2002 Prohibition.
Section 1634 of Division A of the National Defense Authorization
Act for Fiscal Year 2018 (Pub. L. 115-91) prohibits Government use on
or after October 1, 2018, of any hardware, software, or services
developed or provided, in whole or in part, by a covered entity.
Contractors are prohibited from--
(a) Providing any covered article that the Government will use on
or after October 1, 2018; and
(b) Using any covered article on or after October 1, 2018, in the
development of data or deliverables first produced in the performance
of the contract.
4.2003 Notification.
When a contractor provides notification pursuant to 52.204-23,
follow agency procedures.
4.2004 Contract clause.
The contracting officer shall insert the clause at 52.204-23,
Prohibition on Contracting for Hardware, Software, and Services
Developed or Provided by Kaspersky Lab and Other Covered Entities, in
all solicitations and contracts.
PART 13--SIMPLIFIED ACQUISITION PROCEDURES
0
4. Amend section 13.201 by adding paragraph (i) to read as follows:
13.201 General.
* * * * *
(i) Do not purchase any hardware, software, or services developed
or provided by Kaspersky Lab that the Government will use on or after
October 1, 2018. (See 4.2002.)
PART 39--ACQUISITION OF INFORMATION TECHNOLOGY
0
5. Amend section 39.101 by adding paragraph (e) to read as follows:
39.101 Policy.
* * * * *
(e) Contracting officers shall not purchase any hardware, software,
or services developed or provided by Kaspersky Lab that the Government
will use on or after October 1, 2018. (See 4.2002.)
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
6. Add section 52.204-23 to read as follows:
52.204-23 Prohibition on Contracting for Hardware, Software, and
Services Developed or Provided by Kaspersky Lab and Other Covered
Entities.
As prescribed in 4.2004, insert the following clause:
Prohibition on Contracting for Hardware, Software, and Services
Developed or Provided by Kaspersky Lab and Other Covered Entities (Jul
2018)
(a) Definitions. As used in this clause--
Covered article means any hardware, software, or service that--
(1) Is developed or provided by a covered entity;
(2) Includes any hardware, software, or service developed or
provided in whole or in part by a covered entity; or
(3) Contains components using any hardware or software developed
in whole or in part by a covered entity.
Covered entity means--
(1) Kaspersky Lab;
(2) Any successor entity to Kaspersky Lab;
(3) Any entity that controls, is controlled by, or is under
common control with Kaspersky Lab; or
(4) Any entity of which Kaspersky Lab has a majority ownership.
(b) Prohibition. Section 1634 of Division A of the National
Defense Authorization Act for Fiscal Year 2018 (Pub. L. 115-91)
prohibits Government use of any covered article. The Contractor is
prohibited from--
(1) Providing any covered article that the Government will use
on or after October 1, 2018; and
(2) Using any covered article on or after October 1, 2018, in
the development of data or deliverables first produced in the
performance of the contract.
(c) Reporting requirement. (1) In the event the Contractor
identifies a covered article provided to the Government during
contract performance, or the Contractor is notified of such by a
subcontractor at any tier or any other source, the Contractor shall
report, in writing, to the Contracting Officer or, in the case of
the Department of Defense, to the website at https://dibnet.dod.mil.
For indefinite delivery contracts, the Contractor shall report to
the Contracting Officer for the indefinite delivery contract and the
Contracting Officer(s) for any affected order or, in the case of the
Department of Defense, identify both the indefinite delivery
contract and any affected orders in the report provided at https://dibnet.dod.mil.
(2) The Contractor shall report the following information
pursuant to paragraph (c)(1) of this clause:
(i) Within 1 business day from the date of such identification
or notification: The contract number; the order number(s), if
applicable; supplier name; brand; model number (Original Equipment
Manufacturer (OEM) number, manufacturer part number, or wholesaler
number); item description; and any readily available information
about mitigation actions undertaken or recommended.
(ii) Within 10 business days of submitting the report pursuant
to paragraph (c)(1) of this clause: Any further available
information about mitigation actions undertaken or recommended. In
addition, the Contractor shall describe the efforts it undertook to
prevent use or submission of a covered article, any reasons that led
to the use or submission of the covered article, and any additional
efforts that will be incorporated to prevent future use or
submission of covered articles.
(d) Subcontracts. The Contractor shall insert the substance of
this clause, including this paragraph (d), in all subcontracts,
including subcontracts for the acquisition of commercial items.
(End of clause)
0
7. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Redesignating paragraphs (a)(2) through (4) as paragraphs (a)(3)
through (5), respectively, and adding a new paragraph (a)(2);
0
c. Redesignating paragraphs (e)(1)(iii) through (xxi) as paragraphs
(e)(1)(iv) through (xxii), respectively, and adding a new paragraph
(e)(1)(iii); and
0
d. In Alternate II:
0
i. Revising the date of the alternate; and
0
ii. Redesignating paragraphs (e)(1)(ii)(C) through (S) as paragraphs
(e)(1)(ii)(D) through (T), respectively, and adding a new paragraph
(e)(1)(ii)(C).
The revisions and additions read as follows:
52.212-5 Contract Terms and Conditions Required To Implement Statutes
or Executive Orders--Commercial Items.
* * * * *
Contract Terms and Conditions Required To Implement Statutes or
Executive Orders--Commercial Items (Jul 2018)
* * * * *
(a) * * *
____ (2) 52.204-23, Prohibition on Contracting for Hardware,
Software, and Services Developed or Provided by Kaspersky Lab and
Other Covered Entities (Jul 2018) (Section 1634 of Pub. L. 115-91).
* * * * *
(e)(1) * * *
(iii) 52.204-23, Prohibition on Contracting for Hardware,
Software, and Services Developed or Provided by Kaspersky Lab and
Other Covered Entities (Jul 2018) (Section 1634 of Pub. L. 115-91).
* * * * *
Alternate II (Jul 2018). * * *
* * * * *
(e)(1) * * *
(ii) * * *
(C) 52.204-23, Prohibition on Contracting for Hardware,
Software, and Services
[[Page 28145]]
Developed or Provided by Kaspersky Lab and Other Covered Entities
(Jul 2018) (Section 1634 of Pub. L. 115-91).
* * * * *
0
8. Amend section 52.213-4 by--
0
a. Revising the date of the clause; and
0
b. Redesignating paragraphs (a)(1)(ii) through (vii) as paragraphs
(a)(1)(iii) through (viii), respectively, and adding a new paragraph
(a)(1)(ii).
The revision and addition read as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other than Commercial
Items) (Jul 2018)
(a) * * *
(1) * * *
(ii) 52.204-23, Prohibition on Contracting for Hardware,
Software, and Services Developed or Provided by Kaspersky Lab and
Other Covered Entities (Jul 2018) (Section 1634 of Pub. L. 115-91).
* * * * *
0
9. Amend section 52.244-6 by--
0
a. Revising the date of the clause;
0
b. Redesignating paragraphs (c)(1)(iv) through (xviii) as paragraphs
(c)(1)(v) through (xix), respectively, and adding a new paragraph
(c)(1)(iv).
The revision and addition read as follows:
52.244-6 Subcontracts for Commercial Items.
* * * * *
Subcontracts for Commercial Items (Jul 2018)
* * * * *
(c)(1) * * *
(iv) 52.204-23, Prohibition on Contracting for Hardware,
Software, and Services Developed or Provided by Kaspersky Lab and
Other Covered Entities (Jul 2018) (Section 1634 of Pub. L. 115-91).
* * * * *
[FR Doc. 2018-12847 Filed 6-14-18; 8:45 am]
BILLING CODE 6820-EP-P