Insights

On April 1, 2024, the Department of Defense (DoD), General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA) issued a final rule updating the Federal Acquisition Regulation (FAR) to add Part 40 on information security and supply chain security. This first action did not implement any new requirements; however, separate rulemakings will follow to relocate existing information security and supply chain security policies and procedures to the new Part 40. Additionally, new related regulations will be housed in Part 40. These actions suggest that the flow of information security and supply chain regulations is likely to continue unabated for at least the next few years.

On March 22, 2022, the Department of Defense (DoD) issued a final rule requiring contracting officers to consider supplier risk assessments in DoD’s Supplier Performance Risk System (SPRS) when evaluating offers. SPRS is a DoD enterprise system that collects contractor quality and delivery performance data from a variety of systems to develop three risk assessments: item risk, price risk, and supplier risk. The final rule introduces a new solicitation provision, DFARS 252.204-7024, which instructs contracting officers to consider these assessments, if available, in the determination of contractor responsibility.

On February 24, 2021, President Biden issued the anticipated Executive Order (EO) on America’s Supply Chains, setting forth the Administration’s policy and goals with respect to strengthening and securing the country’s supply chain for critical products and services. Reflecting both an economic and national security focus, the EO directs the Assistant to the President for National Security Affairs (APNSA) and the Assistant to the President for Economic Policy (APEP) to coordinate the various agency actions contemplated by the EO, starting with a 100-day supply chain review by key agencies (including Commerce, Energy, Defense, and Health and Human Services) to identify risks and make specific policy recommendations as needed. The EO also calls on these agencies to prepare more comprehensive reports, due within one year, identifying limits and barriers to improving domestic capacity and resources.

There are business opportunities abound in and with the US. You just have to know where to find them and how to navigate through the rules and regulations. Crowell launches a series of webinars in which we will help you to successfully do business in and with the US. Don’t miss out on this series where our practitioners will guide you through the intricate legal landscape to ensure you can establish and conduct your business in a fast and easy way. We will cover what you need to think about before expansion, launching in the US and then ensuring long term success.The topics to be discussed in this series will include:

Supply chain disruptions have exacerbated strains and weaknesses in existing trade infrastructure, causing widespread ripple effects throughout the global economy.  From an international trade perspective, companies face real-time pressures to make business decisions that may have complex legal implications going forward.  Our International Trade Team will lead a discussion highlighting current risks companies are encountering, potential legal implications, and strategies to mitigate risks in real-time in this dynamic and changing landscape.

The Coronavirus Pandemic continues to cause disruptions and highlight vulnerabilities in supply chains across nearly all industrial sectors. As businesses attempt to respond to challenges in obtaining parts and supplies, meeting contract supply and staffing requirements, and adhering to CDC recommendations, companies should be aware of how to minimize disruptions, preserve their rights, and avoid bad practices that could enhance post-pandemic legal risk. The declaration of a national emergency, amongst other recent acts, have opened doors for new contracts and contract modifications. Meanwhile, bad actors should be expected to seek opportunities to take advantage of the telework, general chaos, and component scarcity.