GSA’s Take on Implementation of Section 889 | Government Contracts & Investigations Blog

On September 10, 2020, the General Services Administration (“GSA”) hosted a webinar related to its implementation of Section 889 of the 2019 NDAA – the ban relating to certain Chinese telecom companies – and associated updated FAR clauses. (We previously have written about Section 889 here, here, here, and here). Below we provide highlights from the meeting. Slides presented at the meeting also are available here.

GSA began by clarifying what it cannot do – GSA is not able to provide contractors with a comprehensive list of subsidiaries and affiliates of the Chinese companies (the U.S. government has not released such a list), and it is not in a position to provide more insight into the definition of “use” under the rules. (We hope more clarity on these issues will be provided in response to comments submitted on the FAR interim rule).

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SBIR Policy Directive Update Preserves Government Contracting Benefits in Acquisition

The policy directive for the Small Business Innovation Research and Small Business Technology Transfer programs (collectively, “SBIR”) will be updated, effective October 1, 2020, to ensure that SBIR contracting benefits for participating firms are preserved, even if the participating entity pursues a merger or acquisition. This policy clarification is beneficial to SBIR firms who are considering or may in the future consider being acquired.

One of the benefits of winning an SBIR contract is the opportunity to obtain follow-on government contracts at a competitive advantage. The SBIR program provides a three-phase structure in which Phase I and Phase II awards are typically directed to research and development, while Phase III awards are typically larger contracts directed to commercialization. SBIR firms may be eligible for Phase III contracts, provided that the Phase III contract “derives from, extends, or completes” work performed under an earlier SBIR contract.

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How Operation Warp Speed's Big Vaccine Contracts Could Stay Secret

The Trump administration has compared Operation Warp Speed's crash program to develop a COVID-19 vaccine to the Manhattan Project. And like the notoriously secretive government project to make the first atomic bomb, the details of Operation Warp Speed's work may take a long time to unravel.

One reason is that Operation Warp Speed is issuing billions of dollars' worth of coronavirus vaccine contracts to companies through a nongovernment intermediary, bypassing the regulatory oversight and transparency of traditional federal contracting mechanisms, NPR has learned.

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