Overview
FAR 4.2303 establishes a mandatory prohibition against executive agencies procuring or renewing contracts for "covered articles" or services from specific sources identified in Federal Acquisition Security Council (FASC) orders. It mandates that agencies and contracting officers identify these supply chain risks through the System for Award Management (SAM) or specific solicitation language to ensure national security interests are protected.
Key Rules
- Broad Prohibition: Executive agencies are barred from procuring, obtaining, extending, or renewing contracts for any covered article or source prohibited by a FASCSA order. This includes contractor use of such articles or sources in the performance of the contract.
- Issuing Authorities: FASCSA orders are issued by the Director of National Intelligence, the Secretary of Defense, or the Secretary of Homeland Security.
- Removal from Multi-Agency Contracts: For Governmentwide orders issued collectively by all three authorities, agencies managing Federal Supply Schedules (FSS) or Governmentwide Acquisition Contracts (GWACs) must proactively remove the prohibited articles or sources from those vehicles.
- Identification Mechanisms:
- SAM.gov: Most orders are identified by searching for the phrase “FASCSA order” within the System for Award Management.
- Solicitation Specifics: Orders not listed in SAM must be explicitly identified within the solicitation to be effective for that specific acquisition.
- CO Responsibility: The contracting officer is required to collaborate with the program office or requiring activity to determine which specific FASCSA orders apply to a given acquisition.
Practical Implications
- Due Diligence Requirements: Contracting Officers and program offices must conduct active research during the acquisition planning phase, as the list of prohibited items in SAM is dynamic and may be supplemented by non-public orders provided by the requiring activity.
- Compliance for Contractors: Contractors must vet their own supply chains to ensure they are not utilizing prohibited articles or sources, as the restriction extends to "contractor use" and can impact contract renewals or extensions.