Federal Acquisition Regulation: Prohibition on a ByteDance Covered Application, 36430-36434 [2023-11756]

Download as PDF 36430 Federal Register / Vol. 88, No. 106 / Friday, June 2, 2023 / Rules and Regulations DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Chapter 1 [Docket No. FAR–2023–0051, Sequence No. 3] Federal Acquisition Regulation; Federal Acquisition Circular 2023–04; Introduction Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Summary presentation of an interim rule. AGENCY: This document summarizes the Federal Acquisition Regulation (FAR) rule agreed to by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) in this Federal Acquisition Circular (FAC) 2023–04. A companion document, the Small Entity Compliance Guide (SECG), follows this FAC. DATES: For effective dates see the separate documents, which follow. FOR FURTHER INFORMATION CONTACT: Farpolicy@gsa.gov or call 202–969–4075 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202– 501–4755 or GSARegSec@gsa.gov. Please cite FAC 2023–04, FAR Case 2023–010. SUMMARY: Rule Listed in FAC 2023–04 Subject: Prohibition on a ByteDance Covered Application. Far Case: 2023–010. ADDRESSES: The FAC, including the SECG, is available at https:// www.regulations.gov. A summary for the FAR rule follows. For the actual revisions and/or amendments made by this FAR rule, refer to the specific subject set forth in the document following this summary. FAC 2023–04 amends the FAR as follows: lotter on DSK11XQN23PROD with RULES4 SUPPLEMENTARY INFORMATION: Prohibition on a ByteDance Covered Application (FAR Case 2023–010) This interim rule amends the Federal Acquisition Regulation to implement the prohibition on having or using the social networking service TikTok or any successor application or service developed or provided by ByteDance VerDate Sep<11>2014 18:25 Jun 01, 2023 Jkt 259001 Limited or an entity owned by ByteDance Limited (‘‘covered application’’). The rule prohibits the presence or use of a covered application on information technology, including certain equipment used by Federal contractors. This prohibition applies to devices regardless of whether the device is owned by the Government, the contractor, or the contractor’s employees (e.g., employee-owned devices that are used as part of an employer bring your own device (BYOD) program). A personally-owned cell phone that is not used in the performance of the contract is not subject to the prohibition. This rule implements section 102 of Division R of the Consolidated Appropriations Act, 2023 (Pub. L. 117– 328), the No TikTok on Government Devices Act, and its implementing guidance under Office of Management and Budget Memorandum M–23–13, ‘‘No TikTok on Government Devices’’ Implementation Guidance. This rule applies to all contracts, including contracts at or below the simplified acquisition threshold, contracts for commercial products (including commercially available off-the-shelf items), and for commercial services. The change is not expected to have a significant economic impact on a substantial number of small entities. This interim rule is being implemented as a national security measure to protect Government information and information and communication technology systems. Janet Fry, Deputy Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy, General Services Administration. Federal Acquisition Circular (FAC) 2023– 04 is issued under the authority of the Secretary of Defense, the Administrator of General Services, and the Administrator of the National Aeronautics and Space Administration. Unless otherwise specified, all Federal Acquisition Regulation (FAR) and other directive material contained in FAC 2023–04 is effective June 2, 2023. John M. Tenaglia, Principal Director, Defense Pricing and Contracting, Department of Defense. Jeffrey A. Koses, Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy, U.S. General Services Administration. Marvin L. Home, Deputy Assistant Administrator for Procurement, Agency Procurement Ombudsman/Competition Advocate, PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 National Aeronautics and Space Administration. [FR Doc. 2023–11755 Filed 6–1–23; 8:45 am] BILLING CODE 6820–EP–P DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 4, 13, 39 and 52 [FAC 2023–04; FAR Case 2023–010; Docket No. 2023–0010, Sequence No. 1] RIN 9000–AO58 Federal Acquisition Regulation: Prohibition on a ByteDance Covered Application 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 Consolidated Appropriations Act, 2023, and its implementing guidance. DATES: Effective June 2, 2023. Applicability: • Contracting officers shall include the clause at FAR 52.204–27, Prohibition on a ByteDance Covered Application— Æ In solicitations issued on or after June 2, 2023; and Æ In solicitations issued before the effective date, provided award of the resulting contract(s) occurs on or after the effective date. The amendment of the solicitation must be accomplished by July 3, 2023. • For existing indefinite-delivery contracts only, contracting officers shall modify them, in accordance with FAR 1.108(d)(3), to include the FAR clause at 52.204–27, Prohibition on a ByteDance Covered Application, by July 3, 2023, to apply to future orders. • If exercising an option or modifying an existing contract or task or delivery order to extend the period of performance, contracting officers shall include the clause. When exercising an option, agencies should consider modifying the existing contract to add the clause in a sufficient amount of time before exercising the option and to provide contractors with adequate time to comply with the clause. Agencies whose mission or operational posture prevents SUMMARY: E:\FR\FM\02JNR4.SGM 02JNR4 Federal Register / Vol. 88, No. 106 / Friday, June 2, 2023 / Rules and Regulations lotter on DSK11XQN23PROD with RULES4 compliance with the timelines above must notify the Federal Chief Information Officer by sending a message to ofcio@omb.eop.gov prior to July 3, 2023. Comment Date: Interested parties should submit written comments to the Regulatory Secretariat Division at the address shown below on or before August 1, 2023 to be considered in the formation of the final rule. ADDRESSES: Submit comments in response to FAC 2023–04, FAR Case 2023–010 to the Federal eRulemaking portal at https://www.regulations.gov by searching for ‘‘FAR Case 2023–010’’. Select the link ‘‘Comment Now’’ that corresponds with ‘‘FAR Case 2023– 010’’. Follow the instructions provided on the ‘‘Comment Now’’ screen. Please include your name, company name (if any), and ‘‘FAR Case 2023–010’’ on your attached document. If your comment cannot be submitted using https:// www.regulations.gov, call or email the points of contact in the FOR FURTHER INFORMATION CONTACT section of this document for alternate instructions. Instructions: Please submit comments only and cite ‘‘FAR Case 2023–010’’ in all correspondence related to this case. Comments received generally will be posted without change to https:// www.regulations.gov, including any personal and/or business confidential information provided. Public comments may be submitted as an individual, as an organization, or anonymously (see frequently asked questions at https:// www.regulations.gov/faq). To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission to verify posting. FOR FURTHER INFORMATION CONTACT: Farpolicy@gsa.gov or call 202–969– 4075. Please cite FAR Case 2023–010. For information pertaining to status, publication schedules, or alternate instructions for submitting comments if https://www.regulations.gov cannot be used, contact the Regulatory Secretariat Division at 202–501–4755 or GSARegSec@gsa.gov. Please cite FAC 2023–04, FAR Case 2023–010. SUPPLEMENTARY INFORMATION: I. Background This interim rule implements section 102 of Division R of the Consolidated Appropriations Act, 2023 (Pub. L. 117– 328), the No TikTok on Government Devices Act, and its implementing guidance under OMB Memorandum M– 23–13, dated February 27, 2023, ‘‘No TikTok on Government Devices’’ Implementation Guidance. The rule revises the FAR to implement the VerDate Sep<11>2014 18:25 Jun 01, 2023 Jkt 259001 prohibition on having or using the social networking service TikTok or any successor application or service developed or provided by ByteDance Limited or an entity owned by ByteDance Limited (‘‘covered application’’). This prohibition applies to the presence or use of any covered application on any information technology owned or managed by the Government, or on any information technology used or provided by the contractor under a contract, including equipment provided by the contractor’s employees, unless an exception is granted in accordance with Office of Management and Budget (OMB) Memorandum M–23–13. TikTok is a software application owned and operated by ByteDance Limited, a privately held company headquartered in Beijing, China. The Consolidated Appropriations Act, 2023, enacted the No TikTok on Government Devices Act, which instructs the Director of OMB, in consultation with the Administrator of General Services, the Director of the Cybersecurity and Infrastructure Security Agency, the Director of National Intelligence, and the Secretary of Defense, to develop standards and guidelines for agencies requiring the removal of TikTok from Federal information technology. OMB Memorandum M–23–13 fulfills the requirement of section 102 of Division R of Public Law 117–328 by directing agencies to remove any covered application (‘‘TikTok’’) from Federal devices and providing instructions and deadlines for that removal. II. Discussion and Analysis This rule amends FAR part 4, adding a new subpart 4.22, Prohibition on a ByteDance Covered Application, with a corresponding new contract clause at 52.204–27, Prohibition on a ByteDance Covered Application. This rule uses the statutory definition of ‘‘information technology’’ because Public Law 117–328 does so. This is different from the FAR definition of ‘‘information technology’’ at 2.101, which excludes imbedded information technology. This rule adds text in subpart 13.2, Actions at or Below the Micro-Purchase Threshold, to address the prohibition with regard to micro-purchases. This rule adds a cross-reference in part 39, Acquisition of Information Technology, to call the attention of contracting officers to the new prohibition. The FAR clause at 52.204–27 prohibits contractors from having or using a covered application on any PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 36431 information technology owned or managed by the Government, or on any information technology used or provided by the contractor under a contract, including equipment provided by the contractor’s employees. This prohibition applies to devices regardless of whether the device is owned by the Government, the contractor, or the contractor’s employees (e.g., employee-owned devices that are used as part of an employer bring your own device (BYOD) program). A personally-owned cell phone that is not used in the performance of the contract is not subject to the prohibition. III. Applicability to Contracts at or Below the Simplified Acquisition Threshold (SAT) and for Commercial Products (Including Commercially Available Off-the-Shelf (COTS) Items), or for Commercial Services This rule adds a new clause at FAR 52.204–27, Prohibition on a ByteDance Covered Application, to implement the requirements of section 102 of Division R of Public Law 117–328, and its implementing guidance under OMB Memorandum M–23–13. The clause is prescribed at FAR 4.2203 for use in solicitations and contracts unless an exception is granted in accordance with OMB Memorandum M–23–13. 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 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 under certain circumstances, including when the Federal Acquisition Regulatory Council (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. The FAR Council has made a determination to apply this statute to acquisitions at or below the SAT. B. Applicability to Contracts for the Acquisition of Commercial Products and Commercial Services, Including Commercially Available Off-the-Shelf (COTS) Items 41 U.S.C. 1906 governs the applicability of laws to contracts for the acquisition of commercial products and commercial services and is intended to limit the applicability of laws to E:\FR\FM\02JNR4.SGM 02JNR4 36432 Federal Register / Vol. 88, No. 106 / Friday, June 2, 2023 / Rules and Regulations lotter on DSK11XQN23PROD with RULES4 contracts for the acquisition of commercial products and commercial services. Section 1906 provides that if the FAR Council makes a written determination that it is not in the best interest of the Federal Government to exempt commercial contracts, the provision of law will apply to contracts for the acquisition of commercial products and commercial services. 41 U.S.C. 1907 states that acquisitions of COTS items will be exempt from certain provisions of law unless the Administrator for Federal Procurement Policy makes a written determination and finds that it would not be in the best interest of the Federal Government to exempt contracts for the procurement of COTS items. The FAR Council has made a determination to apply this statute to acquisitions for commercial products and commercial services. The Administrator for Federal Procurement Policy has made a determination to apply this statute to acquisitions for COTS items. 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 products and commercial services. 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 products and commercial services, including COTS items, there is an unacceptable level of risk for the Government in allowing the presence or use of a covered application on information technology, including certain equipment used by Federal contractors. This level of risk is not alleviated by the fact that the service or product 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 product 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 risk of exposure if the presence or use of a covered application is allowed on a contract for commercial services or commercial products (including COTS items). The prohibition on having or using a covered application on information technology, including certain equipment used by Federal contractors, is a national security measure to protect Government VerDate Sep<11>2014 18:25 Jun 01, 2023 Jkt 259001 information and information and communication technology systems. that require frequent reviews of the supply chain. IV. Expected Impact of the Rule V. 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 is a significant regulatory action and, therefore, was subject to review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not expected to have a significant economic impact on businesses. The changes made in this rule are less complex than other prohibitions that have been incorporated into the FAR, such as the prohibition on contracting for certain telecommunications and video surveillance services or equipment, which requires reviewing a contractor’s supply chain to uncover any prohibited equipment or services. See FAR clause 52.204–25, Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment. The changes made by this rule do not require a contractor to review its supply chain. Additionally, there is no reporting requirement by a contractor such as those required by 52.204–25, and by FAR clause 52.204– 23, Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab and Other Covered Entities. The changes made by this rule do require contractors to leverage existing technology, policies, and procedures already in place and update those to prohibit the presence or use of a covered application or the URLs associated with a covered application on devices used by a contractor under a contract with the Government. It is expected that contractors already have technology in place to block access to unwanted or nefarious websites, prevent the download of prohibited applications (apps) to devices, and remove a downloaded app. Additionally, it is expected that contractors already have policies in place for employees to follow for workplace technology. It is recognized that these policies will need to be updated to include the prohibition on having or using a covered application, and that implementation of the prohibition may also require employee communications or training on this new requirement. It will be particularly important for contractors to clearly explain to their employees when a covered application is prohibited on a personal device used in performance of a Federal contract. The efforts required by a contractor to update its technology and policies to implement the prohibition on having or using TikTok will be limited to an initial review of technology and policies for TikTok or any successor application or service and will only require review of policies periodically thereafter. This is also quite different from prohibitions PO 00000 Frm 00004 Fmt 4701 Sfmt 4700 VI. Congressional Review Act The Congressional Review Act (5 U.S.C. 801–808) requires interim and final rules to be submitted to Congress before the rule takes effect. DoD, GSA, and NASA will send this rule to each House of the Congress and to the Comptroller General of the United States. The Office of Information and Regulatory Affairs (OIRA) in the Office of Management and Budget has determined that this is not a major rule under 5 U.S.C. 804. VII. Regulatory Flexibility Act DoD, GSA, and NASA do not expect this rule to 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– 612, because of the reasons discussed in section IV of this preamble. However, an Initial Regulatory Flexibility Analysis (IRFA) has been performed and is summarized as follows: DoD, GSA, and NASA are amending the FAR to implement the prohibition on having or using the social networking service TikTok or any successor application or service developed or provided by ByteDance Limited or an entity owned by ByteDance Limited (‘‘covered application’’). The rule prohibits the presence or use of a covered application on agency information technology, including certain equipment used by Federal contractors. This interim rule is being implemented as a national security measure to protect Government information and information and communication technology systems. The legal basis for the rule is section 102 of Division R of the Consolidated Appropriations Act, 2023 (Pub. L. 117–328), and its implementing guidance under OMB Memorandum M–23–13, which collectively prohibit the presence or use of a covered application on information technology, including certain equipment used by Federal E:\FR\FM\02JNR4.SGM 02JNR4 Federal Register / Vol. 88, No. 106 / Friday, June 2, 2023 / Rules and Regulations contractors. Promulgation of the FAR is authorized by 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113. This rule applies to small and other than small businesses. Based on data obtained from the Federal Procurement Data System, 116,133 unique entities (including 76,206 small businesses) were awarded contracts in FY 2022. DoD, GSA, and NASA do not have data as to how many subcontracts are awarded to small businesses. The proposed rule does not include any reporting or record keeping requirements. The rule does not duplicate, overlap, or conflict with any other Federal rules. There are no available alternatives to the interim rule to accomplish the desired objective of the statute. Because of the nature of the prohibition enacted by section 102 of Division R of Public Law 117–328, it is not possible to exempt small entities from coverage of the rule. The Regulatory Secretariat Division 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 Division. 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 the rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 2023–010), in correspondence. lotter on DSK11XQN23PROD with RULES4 VIII. Paperwork Reduction Act This rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. 3501–3521). IX. Determination To Issue an Immediately Effective Interim Rule A determination has been made under the authority of the Secretary of Defense, the Administrator of General Services, and the Administrator of the National Aeronautics and Space Administration that urgent and compelling reasons exist to promulgate this interim rule effective immediately without prior opportunity for public comment. This action is necessary because section 102 of Division R of Public Law 117–328 and its implementing guidance under OMB Memorandum M–23–13 require agencies to comply with the prohibition on a covered application in contracts no later than 120 days after the effective VerDate Sep<11>2014 18:25 Jun 01, 2023 Jkt 259001 date of the Memorandum. This interim rule is being implemented as a national security measure to protect Government information and information and communication technology systems. Issuing an interim rule facilitates uniformity and consistency across Government, allows agencies to prepare for the implementation of the requirements of OMB Memorandum M– 23–13, limits the chance of incorrect implementation, prevents the need for contracting officers to have to relearn or change procedures if agency-specific guidance differs from the FAR implementation, and aids industry with compliance. However, pursuant to 41 U.S.C. 1707 and FAR 1.501–3(b), the Department of Defense, General Services Administration, and National Aeronautics and Space Administration will consider public comments received in response to this interim rule in the formation of the final rule. List of Subjects in 48 CFR Parts 4, 13, 39, and 52 Government procurement. Janet Fry, Deputy Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy, General Services Administration. Therefore, DoD, GSA, and NASA amend 48 CFR parts 4, 13, 39, and 52 as set forth below: ■ 1. The authority citation for 48 CFR parts 4, 13, 39, and 52 continues to read as follows: Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113. PART 4—ADMINISTRATIVE AND INFORMATION MATTERS ■ 2. Add subpart 4.22 to read as follows: Subpart 4.22—Prohibition on a ByteDance Covered Application Sec. 4.2201 Definitions. 4.2202 Prohibition. 4.2203 Contract clause. Subpart 4.22—Prohibition on a ByteDance Covered Application 4.2201 Definitions. As used in this subpart— Covered application means the social networking service TikTok or any successor application or service developed or provided by ByteDance Limited or an entity owned by ByteDance Limited. Information technology, as defined in 40 U.S.C. 11101(6)— PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 36433 (1) Means any equipment or interconnected system or subsystem of equipment, used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the executive agency, if the equipment is used by the executive agency directly or is used by a contractor under a contract with the executive agency that requires the use— (i) Of that equipment; or (ii) Of that equipment to a significant extent in the performance of a service or the furnishing of a product; (2) Includes computers, ancillary equipment (including imaging peripherals, input, output, and storage devices necessary for security and surveillance), peripheral equipment designed to be controlled by the central processing unit of a computer, software, firmware and similar procedures, services (including support services), and related resources; but (3) Does not include any equipment acquired by a Federal contractor incidental to a Federal contract. 4.2202 Prohibition. (a) Section 102 of Division R of the Consolidated Appropriations Act, 2023 (Pub. L. 117–328), the No TikTok on Government Devices Act, and its implementing guidance under Office of Management and Budget (OMB) Memorandum M–23–13, dated February 27, 2023, ‘‘No TikTok on Government Devices’’ Implementation Guidance, collectively prohibit the presence or use of a covered application on information technology, including certain equipment used by Federal contractors. (b) This prohibition applies to the presence or use of a covered application on any information technology owned or managed by the Government, or on any information technology used or provided by the contractor under a contract, including equipment provided by the contractor’s employees, unless an exception is granted in accordance with OMB Memorandum M–23–13. 4.2203 Contract clause. The contracting officer shall insert the clause at 52.204–27, Prohibition on a ByteDance Covered Application, in all solicitations and contracts, unless an exception is granted in accordance with OMB Memorandum M–23–13. PART 13—SIMPLIFIED ACQUISITION PROCEDURES 3. Amend section 13.201 by adding paragraph (k) to read as follows: ■ E:\FR\FM\02JNR4.SGM 02JNR4 36434 13.201 Federal Register / Vol. 88, No. 106 / Friday, June 2, 2023 / Rules and Regulations General. * * * * * (k) The prohibition in subpart 4.22 on use of a covered application (‘‘TikTok’’) applies to purchases at or below the micro-purchase threshold where the performance of the contract may require the presence or use of a covered application, (e.g., where social media advertising services might be part of the procurement), unless an exception is granted in accordance with Office of Management and Budget Memorandum M–23–13 (see 4.2202). PART 39—ACQUISITION OF INFORMATION TECHNOLOGY 4. Amend section 39.101 by adding paragraph (g) to read as follows: ■ 39.101 Policy. * * * * * (g) See the prohibition in 4.2202 on the presence or use of a covered application (‘‘TikTok’’). PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 5. Add section 52.204–27 to read as follows: ■ 52.204–27 Prohibition on a ByteDance Covered Application. lotter on DSK11XQN23PROD with RULES4 Prohibition on a Bytedance Covered Application (June 2023) (a) Definitions. As used in this clause— Covered application means the social networking service TikTok or any successor application or service developed or provided by ByteDance Limited or an entity owned by ByteDance Limited. Information technology, as defined in 40 U.S.C. 11101(6)— (1) Means any equipment or interconnected system or subsystem of equipment, used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the executive agency, if the equipment is used by the executive agency directly or is used by a contractor under a contract with the executive agency that requires the use— (i) Of that equipment; or (ii) Of that equipment to a significant extent in the performance of a service or the furnishing of a product; (2) Includes computers, ancillary equipment (including imaging peripherals, input, output, and storage devices necessary for security and surveillance), peripheral equipment designed to be controlled by the central processing unit of a computer, software, firmware and similar procedures, services (including support services), and related resources; but 18:25 Jun 01, 2023 Jkt 259001 (v) 52.204–27, Prohibition on a ByteDance Covered Application (June 2023) (Section 102 of Division R of Pub. L. 117–328). (End of clause) Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services) (June 2023) 6. Amend section 52.212–5 by— a. Revising the date of the clause; b. Redesignating paragraphs (b)(8) through (63) as paragraphs (b)(9) through (64); ■ c. Adding a new paragraph (b)(8); ■ d. Redesignating paragraphs (e)(1)(v) through (xxiii) as paragraphs (e)(1)(vi) through (xxiv); ■ e. Adding a new paragraph (e)(1)(v); ■ f. In Alternate II: ■ i. Revising the date of the Alternate; ■ ii. Redesignating paragraphs (e)(1)(ii)(E) through (V) as paragraphs (e)(1)(ii)(F) through (W); and ■ iii. Adding a new paragraph (e)(1)(ii)(E). The revisions and additions read as follows: ■ ■ ■ As prescribed in 4.2203, insert the following clause: VerDate Sep<11>2014 (3) Does not include any equipment acquired by a Federal contractor incidental to a Federal contract. (b) Prohibition. Section 102 of Division R of the Consolidated Appropriations Act, 2023 (Pub. L. 117–328), the No TikTok on Government Devices Act, and its implementing guidance under Office of Management and Budget (OMB) Memorandum M–23–13, dated February 27, 2023, ‘‘No TikTok on Government Devices’’ Implementation Guidance, collectively prohibit the presence or use of a covered application on executive agency information technology, including certain equipment used by Federal contractors. The Contractor is prohibited from having or using a covered application on any information technology owned or managed by the Government, or on any information technology used or provided by the Contractor under this contract, including equipment provided by the Contractor’s employees; however, this prohibition does not apply if the Contracting Officer provides written notification to the Contractor that an exception has been granted in accordance with OMB Memorandum M–23–13. (c) Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (c), in all subcontracts, including subcontracts for the acquisition of commercial products or commercial services. 52.212–5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services. * * * * * Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services (June 2023) * * * * * (b) * * * (8) 52.204–27, Prohibition on a ByteDance Covered Application (June 2023) (Section 102 of Division R of Pub. L. 117–328). * * * * * (e)(1) * * * PO 00000 Frm 00006 * * * * * * * * Sfmt 9990 * (e)(1) * * * (ii) * * * (E) 52.204–27, Prohibition on a ByteDance Covered Application (June 2023) (Section 102 of Division R of Pub. L. 117–328). * * * * * 7. Amend section 52.213–4 by— ■ a. Revising the date of the clause; ■ b. Redesignating paragraphs (a)(1)(iv) through (x) as paragraphs (a)(1)(v) through (xi); ■ c. Adding a new paragraph (a)(1)(iv); and ■ d. Removing from paragraph (a)(2)(vii) ‘‘(MAR 2023)’’ and adding ‘‘([June 2023])’’ in its place. The revision and addition read as follows: ■ 52.213–4 Terms and Conditions— Simplified Acquisitions (Other Than Commercial Products and Commercial Services). * * * * * (a) * * * (1) * * * (iv) 52.204–27, Prohibition on a ByteDance Covered Application (June 2023) (Section 102 of Division R of Pub. L. 117–328), unless the agency grants an exception—see paragraph (b) of 52.204– 27. * * * * * ■ 8. Amend section 52.244–6 by— ■ a. Revising the date of the clause; ■ b. Redesignating paragraphs (c)(1)(vii) through (xx) as paragraphs (c)(1)(viii) through (xxi); and ■ c. Adding a new paragraph (c)(1)(vii). The revision and addition read as follows: 52.244–6 Subcontracts for Commercial Products and Commercial Services. * * * * * Subcontracts for Commercial Products and Commercial Services (June 2023) * * * * * (c)(1) * * * (vii) 52.204–27, Prohibition on a ByteDance Covered Application (June 2023) (Section 102 of Division R of Pub. L. 117– 328). * * * * * [FR Doc. 2023–11756 Filed 6–1–23; 8:45 am] BILLING CODE 6820–EP–P Fmt 4701 * Alternate II (June 2023). * * * E:\FR\FM\02JNR4.SGM 02JNR4

Agencies

[Federal Register Volume 88, Number 106 (Friday, June 2, 2023)]
[Rules and Regulations]
[Pages 36430-36434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11756]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 4, 13, 39 and 52

[FAC 2023-04; FAR Case 2023-010; Docket No. 2023-0010, Sequence No. 1]
RIN 9000-AO58


Federal Acquisition Regulation: Prohibition on a ByteDance 
Covered Application

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule.

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SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the 
Federal Acquisition Regulation (FAR) to implement a section of the 
Consolidated Appropriations Act, 2023, and its implementing guidance.

DATES: Effective June 2, 2023.
    Applicability:
     Contracting officers shall include the clause at FAR 
52.204-27, Prohibition on a ByteDance Covered Application--
    [cir] In solicitations issued on or after June 2, 2023; and
    [cir] In solicitations issued before the effective date, provided 
award of the resulting contract(s) occurs on or after the effective 
date. The amendment of the solicitation must be accomplished by July 3, 
2023.
     For existing indefinite-delivery contracts only, 
contracting officers shall modify them, in accordance with FAR 
1.108(d)(3), to include the FAR clause at 52.204-27, Prohibition on a 
ByteDance Covered Application, by July 3, 2023, to apply to future 
orders.
     If exercising an option or modifying an existing contract 
or task or delivery order to extend the period of performance, 
contracting officers shall include the clause. When exercising an 
option, agencies should consider modifying the existing contract to add 
the clause in a sufficient amount of time before exercising the option 
and to provide contractors with adequate time to comply with the 
clause.
    Agencies whose mission or operational posture prevents

[[Page 36431]]

compliance with the timelines above must notify the Federal Chief 
Information Officer by sending a message to [email protected] prior to 
July 3, 2023.
    Comment Date: Interested parties should submit written comments to 
the Regulatory Secretariat Division at the address shown below on or 
before August 1, 2023 to be considered in the formation of the final 
rule.

ADDRESSES: Submit comments in response to FAC 2023-04, FAR Case 2023-
010 to the Federal eRulemaking portal at https://www.regulations.gov by 
searching for ``FAR Case 2023-010''. Select the link ``Comment Now'' 
that corresponds with ``FAR Case 2023-010''. Follow the instructions 
provided on the ``Comment Now'' screen. Please include your name, 
company name (if any), and ``FAR Case 2023-010'' on your attached 
document. If your comment cannot be submitted using https://www.regulations.gov, call or email the points of contact in the FOR 
FURTHER INFORMATION CONTACT section of this document for alternate 
instructions.
    Instructions: Please submit comments only and cite ``FAR Case 2023-
010'' in all correspondence related to this case. Comments received 
generally will be posted without change to https://www.regulations.gov, 
including any personal and/or business confidential information 
provided. Public comments may be submitted as an individual, as an 
organization, or anonymously (see frequently asked questions at https://www.regulations.gov/faq). To confirm receipt of your comment(s), 
please check https://www.regulations.gov, approximately two to three 
days after submission to verify posting.

FOR FURTHER INFORMATION CONTACT: [email protected] or call 202-969-
4075. Please cite FAR Case 2023-010. For information pertaining to 
status, publication schedules, or alternate instructions for submitting 
comments if https://www.regulations.gov cannot be used, contact the 
Regulatory Secretariat Division at 202-501-4755 or [email protected]. 
Please cite FAC 2023-04, FAR Case 2023-010.

SUPPLEMENTARY INFORMATION:

I. Background

    This interim rule implements section 102 of Division R of the 
Consolidated Appropriations Act, 2023 (Pub. L. 117-328), the No TikTok 
on Government Devices Act, and its implementing guidance under OMB 
Memorandum M-23-13, dated February 27, 2023, ``No TikTok on Government 
Devices'' Implementation Guidance. The rule revises the FAR to 
implement the prohibition on having or using the social networking 
service TikTok or any successor application or service developed or 
provided by ByteDance Limited or an entity owned by ByteDance Limited 
(``covered application''). This prohibition applies to the presence or 
use of any covered application on any information technology owned or 
managed by the Government, or on any information technology used or 
provided by the contractor under a contract, including equipment 
provided by the contractor's employees, unless an exception is granted 
in accordance with Office of Management and Budget (OMB) Memorandum M-
23-13.
    TikTok is a software application owned and operated by ByteDance 
Limited, a privately held company headquartered in Beijing, China. The 
Consolidated Appropriations Act, 2023, enacted the No TikTok on 
Government Devices Act, which instructs the Director of OMB, in 
consultation with the Administrator of General Services, the Director 
of the Cybersecurity and Infrastructure Security Agency, the Director 
of National Intelligence, and the Secretary of Defense, to develop 
standards and guidelines for agencies requiring the removal of TikTok 
from Federal information technology.
    OMB Memorandum M-23-13 fulfills the requirement of section 102 of 
Division R of Public Law 117-328 by directing agencies to remove any 
covered application (``TikTok'') from Federal devices and providing 
instructions and deadlines for that removal.

II. Discussion and Analysis

    This rule amends FAR part 4, adding a new subpart 4.22, Prohibition 
on a ByteDance Covered Application, with a corresponding new contract 
clause at 52.204-27, Prohibition on a ByteDance Covered Application.
    This rule uses the statutory definition of ``information 
technology'' because Public Law 117-328 does so. This is different from 
the FAR definition of ``information technology'' at 2.101, which 
excludes imbedded information technology.
    This rule adds text in subpart 13.2, Actions at or Below the Micro-
Purchase Threshold, to address the prohibition with regard to micro-
purchases.
    This rule adds a cross-reference in part 39, Acquisition of 
Information Technology, to call the attention of contracting officers 
to the new prohibition.
    The FAR clause at 52.204-27 prohibits contractors from having or 
using a covered application on any information technology owned or 
managed by the Government, or on any information technology used or 
provided by the contractor under a contract, including equipment 
provided by the contractor's employees.
    This prohibition applies to devices regardless of whether the 
device is owned by the Government, the contractor, or the contractor's 
employees (e.g., employee-owned devices that are used as part of an 
employer bring your own device (BYOD) program). A personally-owned cell 
phone that is not used in the performance of the contract is not 
subject to the prohibition.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT) and for Commercial Products (Including Commercially 
Available Off-the-Shelf (COTS) Items), or for Commercial Services

    This rule adds a new clause at FAR 52.204-27, Prohibition on a 
ByteDance Covered Application, to implement the requirements of section 
102 of Division R of Public Law 117-328, and its implementing guidance 
under OMB Memorandum M-23-13. The clause is prescribed at FAR 4.2203 
for use in solicitations and contracts unless an exception is granted 
in accordance with OMB Memorandum M-23-13.

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 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 under certain circumstances, including when the Federal Acquisition 
Regulatory Council (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. The FAR Council has made a 
determination to apply this statute to acquisitions at or below the 
SAT.

B. Applicability to Contracts for the Acquisition of Commercial 
Products and Commercial Services, Including Commercially Available Off-
the-Shelf (COTS) Items

    41 U.S.C. 1906 governs the applicability of laws to contracts for 
the acquisition of commercial products and commercial services and is 
intended to limit the applicability of laws to

[[Page 36432]]

contracts for the acquisition of commercial products and commercial 
services. Section 1906 provides that if the FAR Council makes a written 
determination that it is not in the best interest of the Federal 
Government to exempt commercial contracts, the provision of law will 
apply to contracts for the acquisition of commercial products and 
commercial services.
    41 U.S.C. 1907 states that acquisitions of COTS items will be 
exempt from certain provisions of law unless the Administrator for 
Federal Procurement Policy makes a written determination and finds that 
it would not be in the best interest of the Federal Government to 
exempt contracts for the procurement of COTS items.
    The FAR Council has made a determination to apply this statute to 
acquisitions for commercial products and commercial services. The 
Administrator for Federal Procurement Policy has made a determination 
to apply this statute to acquisitions for COTS items.

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 products and commercial services. 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 products and commercial services, including COTS items, 
there is an unacceptable level of risk for the Government in allowing 
the presence or use of a covered application on information technology, 
including certain equipment used by Federal contractors. This level of 
risk is not alleviated by the fact that the service or product 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 product 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 risk of exposure if the presence or use of a covered 
application is allowed on a contract for commercial services or 
commercial products (including COTS items). The prohibition on having 
or using a covered application on information technology, including 
certain equipment used by Federal contractors, is a national security 
measure to protect Government information and information and 
communication technology systems.

IV. Expected Impact of the Rule

    This rule is not expected to have a significant economic impact on 
businesses. The changes made in this rule are less complex than other 
prohibitions that have been incorporated into the FAR, such as the 
prohibition on contracting for certain telecommunications and video 
surveillance services or equipment, which requires reviewing a 
contractor's supply chain to uncover any prohibited equipment or 
services. See FAR clause 52.204-25, Prohibition on Contracting for 
Certain Telecommunications and Video Surveillance Services or 
Equipment. The changes made by this rule do not require a contractor to 
review its supply chain. Additionally, there is no reporting 
requirement by a contractor such as those required by 52.204-25, and by 
FAR clause 52.204-23, Prohibition on Contracting for Hardware, 
Software, and Services Developed or Provided by Kaspersky Lab and Other 
Covered Entities. The changes made by this rule do require contractors 
to leverage existing technology, policies, and procedures already in 
place and update those to prohibit the presence or use of a covered 
application or the URLs associated with a covered application on 
devices used by a contractor under a contract with the Government. It 
is expected that contractors already have technology in place to block 
access to unwanted or nefarious websites, prevent the download of 
prohibited applications (apps) to devices, and remove a downloaded app. 
Additionally, it is expected that contractors already have policies in 
place for employees to follow for workplace technology. It is 
recognized that these policies will need to be updated to include the 
prohibition on having or using a covered application, and that 
implementation of the prohibition may also require employee 
communications or training on this new requirement. It will be 
particularly important for contractors to clearly explain to their 
employees when a covered application is prohibited on a personal device 
used in performance of a Federal contract.
    The efforts required by a contractor to update its technology and 
policies to implement the prohibition on having or using TikTok will be 
limited to an initial review of technology and policies for TikTok or 
any successor application or service and will only require review of 
policies periodically thereafter. This is also quite different from 
prohibitions that require frequent reviews of the supply chain.

V. 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 is a significant regulatory action and, therefore, was subject to 
review under Section 6(b) of E.O. 12866, Regulatory Planning and 
Review, dated September 30, 1993.

VI. Congressional Review Act

    The Congressional Review Act (5 U.S.C. 801-808) requires interim 
and final rules to be submitted to Congress before the rule takes 
effect. DoD, GSA, and NASA will send this rule to each House of the 
Congress and to the Comptroller General of the United States. The 
Office of Information and Regulatory Affairs (OIRA) in the Office of 
Management and Budget has determined that this is not a major rule 
under 5 U.S.C. 804.

VII. Regulatory Flexibility Act

    DoD, GSA, and NASA do not expect this rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601-612, because of 
the reasons discussed in section IV of this preamble. However, an 
Initial Regulatory Flexibility Analysis (IRFA) has been performed and 
is summarized as follows:

    DoD, GSA, and NASA are amending the FAR to implement the 
prohibition on having or using the social networking service TikTok 
or any successor application or service developed or provided by 
ByteDance Limited or an entity owned by ByteDance Limited (``covered 
application''). The rule prohibits the presence or use of a covered 
application on agency information technology, including certain 
equipment used by Federal contractors.
    This interim rule is being implemented as a national security 
measure to protect Government information and information and 
communication technology systems. The legal basis for the rule is 
section 102 of Division R of the Consolidated Appropriations Act, 
2023 (Pub. L. 117-328), and its implementing guidance under OMB 
Memorandum M-23-13, which collectively prohibit the presence or use 
of a covered application on information technology, including 
certain equipment used by Federal

[[Page 36433]]

contractors. Promulgation of the FAR is authorized by 40 U.S.C. 
121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy 
provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.
    This rule applies to small and other than small businesses. 
Based on data obtained from the Federal Procurement Data System, 
116,133 unique entities (including 76,206 small businesses) were 
awarded contracts in FY 2022. DoD, GSA, and NASA do not have data as 
to how many subcontracts are awarded to small businesses.
    The proposed rule does not include any reporting or record 
keeping requirements.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no available alternatives to the interim rule to 
accomplish the desired objective of the statute. Because of the 
nature of the prohibition enacted by section 102 of Division R of 
Public Law 117-328, it is not possible to exempt small entities from 
coverage of the rule.

    The Regulatory Secretariat Division 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 Division. 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 the rule in 
accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 610 (FAR Case 2023-010), 
in correspondence.

VIII. Paperwork Reduction Act

    This rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. 3501-3521).

IX. Determination To Issue an Immediately Effective Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense, the Administrator of General Services, and the 
Administrator of the National Aeronautics and Space Administration that 
urgent and compelling reasons exist to promulgate this interim rule 
effective immediately without prior opportunity for public comment. 
This action is necessary because section 102 of Division R of Public 
Law 117-328 and its implementing guidance under OMB Memorandum M-23-13 
require agencies to comply with the prohibition on a covered 
application in contracts no later than 120 days after the effective 
date of the Memorandum. This interim rule is being implemented as a 
national security measure to protect Government information and 
information and communication technology systems. Issuing an interim 
rule facilitates uniformity and consistency across Government, allows 
agencies to prepare for the implementation of the requirements of OMB 
Memorandum M-23-13, limits the chance of incorrect implementation, 
prevents the need for contracting officers to have to relearn or change 
procedures if agency-specific guidance differs from the FAR 
implementation, and aids industry with compliance. However, pursuant to 
41 U.S.C. 1707 and FAR 1.501-3(b), the Department of Defense, General 
Services Administration, and National Aeronautics and Space 
Administration will consider public comments received in response to 
this interim rule in the formation of the final rule.

List of Subjects in 48 CFR Parts 4, 13, 39, and 52

    Government procurement.

Janet Fry,
Deputy Director, Office of Government-wide Acquisition Policy, Office 
of Acquisition Policy, Office of Government-wide Policy, General 
Services Administration.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 4, 13, 39, and 52 
as set forth below:

0
1. The authority citation for 48 CFR parts 4, 13, 39, and 52 continues 
to read as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. 
chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 
20113.

PART 4--ADMINISTRATIVE AND INFORMATION MATTERS

0
2. Add subpart 4.22 to read as follows:
Subpart 4.22--Prohibition on a ByteDance Covered Application
Sec.
4.2201 Definitions.
4.2202 Prohibition.
4.2203 Contract clause.

Subpart 4.22--Prohibition on a ByteDance Covered Application


4.2201  Definitions.

    As used in this subpart--
    Covered application means the social networking service TikTok or 
any successor application or service developed or provided by ByteDance 
Limited or an entity owned by ByteDance Limited.
    Information technology, as defined in 40 U.S.C. 11101(6)--
    (1) Means any equipment or interconnected system or subsystem of 
equipment, used in the automatic acquisition, storage, analysis, 
evaluation, manipulation, management, movement, control, display, 
switching, interchange, transmission, or reception of data or 
information by the executive agency, if the equipment is used by the 
executive agency directly or is used by a contractor under a contract 
with the executive agency that requires the use--
    (i) Of that equipment; or
    (ii) Of that equipment to a significant extent in the performance 
of a service or the furnishing of a product;
    (2) Includes computers, ancillary equipment (including imaging 
peripherals, input, output, and storage devices necessary for security 
and surveillance), peripheral equipment designed to be controlled by 
the central processing unit of a computer, software, firmware and 
similar procedures, services (including support services), and related 
resources; but
    (3) Does not include any equipment acquired by a Federal contractor 
incidental to a Federal contract.


4.2202  Prohibition.

    (a) Section 102 of Division R of the Consolidated Appropriations 
Act, 2023 (Pub. L. 117-328), the No TikTok on Government Devices Act, 
and its implementing guidance under Office of Management and Budget 
(OMB) Memorandum M-23-13, dated February 27, 2023, ``No TikTok on 
Government Devices'' Implementation Guidance, collectively prohibit the 
presence or use of a covered application on information technology, 
including certain equipment used by Federal contractors.
    (b) This prohibition applies to the presence or use of a covered 
application on any information technology owned or managed by the 
Government, or on any information technology used or provided by the 
contractor under a contract, including equipment provided by the 
contractor's employees, unless an exception is granted in accordance 
with OMB Memorandum M-23-13.


4.2203  Contract clause.

    The contracting officer shall insert the clause at 52.204-27, 
Prohibition on a ByteDance Covered Application, in all solicitations 
and contracts, unless an exception is granted in accordance with OMB 
Memorandum M-23-13.

PART 13--SIMPLIFIED ACQUISITION PROCEDURES

0
3. Amend section 13.201 by adding paragraph (k) to read as follows:

[[Page 36434]]

13.201  General.

* * * * *
    (k) The prohibition in subpart 4.22 on use of a covered application 
(``TikTok'') applies to purchases at or below the micro-purchase 
threshold where the performance of the contract may require the 
presence or use of a covered application, (e.g., where social media 
advertising services might be part of the procurement), unless an 
exception is granted in accordance with Office of Management and Budget 
Memorandum M-23-13 (see 4.2202).

PART 39--ACQUISITION OF INFORMATION TECHNOLOGY

0
4. Amend section 39.101 by adding paragraph (g) to read as follows:


39.101  Policy.

* * * * *
    (g) See the prohibition in 4.2202 on the presence or use of a 
covered application (``TikTok'').

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
5. Add section 52.204-27 to read as follows:


52.204-27  Prohibition on a ByteDance Covered Application.

    As prescribed in 4.2203, insert the following clause:

Prohibition on a Bytedance Covered Application (June 2023)

    (a) Definitions. As used in this clause--
    Covered application means the social networking service TikTok 
or any successor application or service developed or provided by 
ByteDance Limited or an entity owned by ByteDance Limited.
    Information technology, as defined in 40 U.S.C. 11101(6)--
    (1) Means any equipment or interconnected system or subsystem of 
equipment, used in the automatic acquisition, storage, analysis, 
evaluation, manipulation, management, movement, control, display, 
switching, interchange, transmission, or reception of data or 
information by the executive agency, if the equipment is used by the 
executive agency directly or is used by a contractor under a 
contract with the executive agency that requires the use--
    (i) Of that equipment; or
    (ii) Of that equipment to a significant extent in the 
performance of a service or the furnishing of a product;
    (2) Includes computers, ancillary equipment (including imaging 
peripherals, input, output, and storage devices necessary for 
security and surveillance), peripheral equipment designed to be 
controlled by the central processing unit of a computer, software, 
firmware and similar procedures, services (including support 
services), and related resources; but
    (3) Does not include any equipment acquired by a Federal 
contractor incidental to a Federal contract.
    (b) Prohibition. Section 102 of Division R of the Consolidated 
Appropriations Act, 2023 (Pub. L. 117-328), the No TikTok on 
Government Devices Act, and its implementing guidance under Office 
of Management and Budget (OMB) Memorandum M-23-13, dated February 
27, 2023, ``No TikTok on Government Devices'' Implementation 
Guidance, collectively prohibit the presence or use of a covered 
application on executive agency information technology, including 
certain equipment used by Federal contractors. The Contractor is 
prohibited from having or using a covered application on any 
information technology owned or managed by the Government, or on any 
information technology used or provided by the Contractor under this 
contract, including equipment provided by the Contractor's 
employees; however, this prohibition does not apply if the 
Contracting Officer provides written notification to the Contractor 
that an exception has been granted in accordance with OMB Memorandum 
M-23-13.
    (c) Subcontracts. The Contractor shall insert the substance of 
this clause, including this paragraph (c), in all subcontracts, 
including subcontracts for the acquisition of commercial products or 
commercial services.
(End of clause)

0
6. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Redesignating paragraphs (b)(8) through (63) as paragraphs (b)(9) 
through (64);
0
c. Adding a new paragraph (b)(8);
0
d. Redesignating paragraphs (e)(1)(v) through (xxiii) as paragraphs 
(e)(1)(vi) through (xxiv);
0
e. Adding a new paragraph (e)(1)(v);
0
f. In Alternate II:
0
i. Revising the date of the Alternate;
0
ii. Redesignating paragraphs (e)(1)(ii)(E) through (V) as paragraphs 
(e)(1)(ii)(F) through (W); and
0
iii. Adding a new paragraph (e)(1)(ii)(E).
    The revisions and additions read as follows:


52.212-5  Contract Terms and Conditions Required To Implement Statutes 
or Executive Orders--Commercial Products and Commercial Services.

* * * * *

Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders--Commercial Products and Commercial Services (June 
2023)

* * * * *
    (b) * * *
    (8) 52.204-27, Prohibition on a ByteDance Covered Application 
(June 2023) (Section 102 of Division R of Pub. L. 117-328).
* * * * *
    (e)(1) * * *
    (v) 52.204-27, Prohibition on a ByteDance Covered Application 
(June 2023) (Section 102 of Division R of Pub. L. 117-328).
* * * * *
    Alternate II (June 2023). * * *
* * * * *
    (e)(1) * * *
    (ii) * * *
    (E) 52.204-27, Prohibition on a ByteDance Covered Application 
(June 2023) (Section 102 of Division R of Pub. L. 117-328).
* * * * *

0
7. Amend section 52.213-4 by--
0
a. Revising the date of the clause;
0
b. Redesignating paragraphs (a)(1)(iv) through (x) as paragraphs 
(a)(1)(v) through (xi);
0
c. Adding a new paragraph (a)(1)(iv); and
0
d. Removing from paragraph (a)(2)(vii) ``(MAR 2023)'' and adding 
``([June 2023])'' in its place.
    The revision and addition read as follows:


52.213-4  Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Products and Commercial Services).

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Products and Commercial Services) (June 2023)

    (a) * * *
    (1) * * *
    (iv) 52.204-27, Prohibition on a ByteDance Covered Application 
(June 2023) (Section 102 of Division R of Pub. L. 117-328), unless the 
agency grants an exception--see paragraph (b) of 52.204-27.
* * * * *

0
8. Amend section 52.244-6 by--
0
a. Revising the date of the clause;
0
b. Redesignating paragraphs (c)(1)(vii) through (xx) as paragraphs 
(c)(1)(viii) through (xxi); and
0
c. Adding a new paragraph (c)(1)(vii).
    The revision and addition read as follows:


52.244-6  Subcontracts for Commercial Products and Commercial Services.

* * * * *

Subcontracts for Commercial Products and Commercial Services (June 
2023)

* * * * *
    (c)(1) * * *
    (vii) 52.204-27, Prohibition on a ByteDance Covered Application 
(June 2023) (Section 102 of Division R of Pub. L. 117-328).
* * * * *

[FR Doc. 2023-11756 Filed 6-1-23; 8:45 am]
BILLING CODE 6820-EP-P


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