Supply Chain

Over the last month, we have issued multiple client alerts outlining developments related to the Chinese military company covered lobbyist prohibition enacted by Section 851 of the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2025, codified at 10 U.S.C. § 4663. This is a follow-up to…

Continue Reading Defense Department Publishes Guidance Page Concerning Restrictions on Defense Contractors Retaining Outside Consultants

The Chinese military company covered lobbyist prohibition enacted by Section 851 of the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2025, codified at 10 U.S.C. § 4663, took effect on June 30, 2026. Just before that date, the Department of Defense took steps to implement the…

Continue Reading Regulations Issued for New Restrictions on Defense Contractors Retaining Outside Consultants

On June 23, 2026, the Federal Acquisition Regulatory Council (“FAR Council”) issued proposed rules covering several parts of the Federal Acquisition Regulation (“FAR”).  The proposed rules mark the beginning of the long-awaited notice-and-comment phase of the Revolutionary FAR Overhaul (“RFO”).  This blog post, focusing on FAR Part 40, provides an overview of the proposed changes to the regulations and the associated contract clauses in FAR Part 52, including the inclusion of requirements around the handling of Controlled Unclassified Information (“CUI”).

Continue Reading Proposed FAR Part 40 Rule: Consolidation of Supply Chain Security and Information Security Requirements and New Changes to the Rules

On June 8, 2026, the Department of War (“DoW”) published its updated list of “Chinese military companies” operating in the United States (“1260H List”), as required by Section 1260H of the Fiscal Year (“FY”) 2021 National Defense Authorization Act (“NDAA”).  The updated list includes, among other companies, WuXi AppTec Co.…

Continue Reading What the Updated 1260H List Means for Biotechnology Procurement

In January 2025, Covington issued a client alert noting that the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2025, which sets annual spending and policy for the Pentagon, introduced new China-related prohibitions on defense contractors and their consultants. The provision is finally set to take effect on…

Continue Reading New Restrictions on Defense Contractors Retaining Outside Consultants Set to Take Effect

On March 13, 2026, President Trump issued an Executive Order (EO) titled “Adjusting Certain Delegations Under the Defense Production Act.”  As we have covered in prior blog posts, the Defense Production Act (DPA) has traditionally been considered the primary federal means to manage and support defense production. …

Continue Reading “Adjusting Certain Delegations”:  New Executive Order Aims to Streamline and Clarify Delegated Authorities Under the Defense Production Act

On February 17, 2026, the Federal Acquisition Regulatory Council released a Notice of Proposed Rulemaking, proposing amendments to the FAR to implement Section 5949 of the FY23 National Defense Authorization Act (“NDAA”).  Section 5949 prohibits executive agencies from obtaining semiconductor parts, products, or services traceable to certain named Chinese companies – currently, Semiconductor Manufacturing International Corporation (“SMIC”), ChangXin Memory Technologies (“CXMT”), and Yangtze Memory Technologies Corp (“YMTC”) – subject to limited exceptions.  In accordance with the statute, the proposed amendments to the FAR would become effective on December 23, 2027.  The proposed rule is not yet final and is open for public comment until April 20, 2026. 

Continue Reading FAR Council Issues Notice of Proposed Rulemaking to Implement Prohibition on Acquisition of Certain Semiconductors

As the federal government focuses on securing reliable supplies of critical minerals, stockpiling has emerged as a key policy tool, alongside direct investments in private enterprises and expanded funding programs for industry.  The National Defense Stockpile (“NDS”) currently serves as the federal strategic reserve of materials needed for national defense, including critical minerals, and the growing policy attention has prompted new proposals and initiatives for upgraded federal stockpiling capabilities.  This blog post reviews the NDS and its activities last year and offers an outlook for critical minerals stockpiling in the year ahead.  

Continue Reading Federal Push for Critical Minerals Stockpiling: 2025 in Review and Outlook for 2026  

After failing to be included in the Fiscal Year (“FY”) 2025 National Defense Authorization Act (“NDAA”) or passed as a standalone piece of legislation, the BIOSECURE Act has moved closer to finally being enacted after it was included in the final FY 2026 NDAA text released by Congress on December 7, 2025.  Section 851 of the FY 2026 NDAA is titled “Prohibition on Contracting with Certain Biotechnology Providers,” but includes in substance what was previously introduced and considered in Congress as the BIOSECURE Act. 

The bill has the potential to impose significant restrictions on the use of certain Chinese companies in the supply chain for products procured by the U.S. Government and accordingly has been of interest to industry over the last few years.  This blog post summarizes the scope of the bill, highlights the changes in the FY 2026 NDAA text as compared to prior iterations of the bill, and flags key considerations for government contractors in the life sciences space.

Continue Reading BIOSECURE Act Moves Closer to Enactment with Inclusion in FY 2026 NDAA Text

On September 15, 2025, the Office of the Director of National Intelligence (“ODNI”) issued the first public exclusion and removal order (the “Order”) under the framework established by the Federal Acquisition Supply Chain Security Act of 2018 (“FASCSA”).  The Order applies to all products and services produced or provided by Acronis AG as well as all subordinate, subsidiary, or affiliated organizations doing business under various names in support of Acronis AG.  The exclusionary Order has two immediate impacts on the federal supply chain.  First, federal contractors entering into new contracts or following contractual modifications are prohibited from supplying products or services from Acronis to agencies that are either subject to the Order or that have otherwise adopted it (“Covered Agencies”).  Second, contractors are prohibited from using products or services from Acronis in the performance of new and modified contracts with Covered Agencies.  In addition, certain agencies must remove these products and services from particular information systems.

Although the prohibitions apply to new contract awards, all contractors to Covered Agencies that have the applicable FASCA FAR clause (FAR 52.204-30) in their agreements must conduct diligence to determine whether they have provided or used any prohibited products or services in the performance of their contracts.  Following this review, the clause requires contractors to report the use of prohibited products or services to Covered Agencies.

Additional detail on the FASCSA exclusionary process and this first public Order is provided below.

Continue Reading First Order Issued under the Federal Acquisition Supply Chain Security Act, Triggering Immediate Requirements on Contractors