Insights

The National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2024, signed into law on December 22, 2023, makes numerous changes to acquisition policy. Crowell & Moring’s Government Contracts Group discusses the most consequential changes for government contractors here. These include changes that impose a new conflict of interest regime for government contractors with a connection to China, impose new restrictions and requirements, require government reporting to Congress on acquisition authorities and programs, and alter other processes and procedures to which government contractors are subject. The FY 2024 NDAA also includes the Federal Data Center Enhancement Act, the American Security Drone Act, and the Intelligence Authorization Act for FY 2024.

On October 5, 2023, the Federal Acquisition Regulation (FAR) Council published an interim rule to prohibit, in the performance of a government contract, the delivery or use of “covered articles” (which includes certain information technology and telecommunications equipment, hardware, systems, devices, software, and services) subject to a Federal Acquisition Supply Chain Security Act (FASCSA) exclusion or removal order.  The interim rule also imposes obligations for a related “reasonable inquiry” at the time of proposal submission and quarterly monitoring during contract performance.  These changes implement the FASCSA of 2018 (P.L. 115-390).  While the Federal Acquisition Security Council (FASC) and the order-issuing agencies (Department of Homeland Security (DHS), Department of Defense (DoD), and the Office of the Director for National Intelligence (ODNI)) have not yet issued any such FASCSA orders, those orders will be identified in the System for Award Management (SAM) or – in some cases – identified in and specific to the contract and any resulting subcontracts.

On September 14, 2023, the Senate Committee on Homeland Security & Governmental Affairs hosted a hearing called “Governing AI Through Acquisition and Procurement” (Hearing).  Senator Gary Peters (D-MI) opened the Hearing, explaining that the purpose was to explore how the U.S. government would purchase AI technologies and establish guidelines and standards for the development and use of those technologies.  Sen. Peters noted that over half of AI tools used by the federal government are purchased from commercial vendors and that the U.S. government should be careful in its procurement and use of these tools.

Please join Crowell & Moring’s Government Contracts Group on Wednesday, February 8, 2023 at 1:00 p.m. ET for a webinar on the National Defense Authorization Act for Fiscal Year 2023. 

Crowell & Moring International Trade attorneys will discuss the most prominent developments of the last year and the trends we expect to continue into 2022.