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 ProcurementSupply Chain
New Restrictions on Defense Contractors Retaining Outside Consultants Set to Take Effect
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 EffectFAR Council Issues Notice of Proposed Rulemaking to Implement Prohibition on Acquisition of Certain Semiconductors
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 SemiconductorsBIOSECURE Act Moves Closer to Enactment with Inclusion in FY 2026 NDAA Text
By Jennifer Plitsch & Jennifer Bentley on
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 TextFirst Order Issued under the Federal Acquisition Supply Chain Security Act, Triggering Immediate Requirements on Contractors
Posted in Supply Chain
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 ContractorsTreasury and IRS Release New Guidance on Inflation Reduction Act Domestic Content Bonus Credit
On May 16, 2024, the Internal Revenue Service (“IRS”) and Department of Treasury (“Treasury”) published Notice 2024-41 (the “2024 Guidance”), which provides new guidance for securing the domestic content bonus credit established by the Inflation Reduction Act (“IRA”). As described in more detail below, the 2024 Guidance builds on the existing framework contained in Notice 2023-38 (the “2023 Guidance”), which was released last May. Most notably, the 2024 Guidance expands the range of applicable projects subject to the safe harbor in the 2023 Guidance and adds a “New Elective Safe Harbor” to determine cost percentages for the domestic content calculation in solar, onshore wind, and battery storage projects.
Continue Reading Treasury and IRS Release New Guidance on Inflation Reduction Act Domestic Content Bonus CreditNew Proposed Rule on Pay Equity and Transparency in Federal Contracting
By Scott A. Freling, Lindsay Burke & Tom Plotkin on
On January 30, 2024, the Federal Acquisition Regulatory Council (“FAR Council”) proposed a new “Pay Equity and Transparency in Federal Contracting” rule for government contractors. The proposed rule intends to increase race and gender equity for employees of federal prime contractors and subcontractors by prohibiting them from requesting and relying on certain information about job applicants’ compensation history and requiring contractors to disclose compensation rates in job announcements for certain positions. These requirements would apply to all prime contracts and subcontracts – including for commercial products and services – where the principal place of performance is within the United States, regardless of dollar amount or tier. The proposed rule is the latest in a number of steps the Biden Administration has taken to address discriminatory pay practices in federal procurement and contracting since announcing an Executive Order on Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency in March 2022.
The proposed rule’s potential impact and implications for contractors — as well as opportunities to submit comments on the issue — are discussed below.
Continue Reading New Proposed Rule on Pay Equity and Transparency in Federal ContractingKey Supply Chain Provisions of the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2024
This post continues our ongoing coverage of the FY 2024 NDAA.
The FY 2024 NDAA includes numerous supply chain and stockpile management provisions aimed at addressing a host of perceived vulnerabilities and weaknesses in Department of Defense (“DoD”) supply chain networks used to secure goods and services for our national defense. Of particular note, this year’s NDAA seeks to address China’s and Russia’s continued dominance in the global supply chain for many critical materials and rare earth elements. Supply chain- and stockpile-related measures in the NDAA could present significant opportunities for contractors poised to support the U.S. Government’s efforts to on-shore and friend-shore U.S. and DoD sourcing and manufacturing, but Congress’s focus on increasing supply chain visibility could also herald new rounds of compliance and reporting requirements attached to federal procurements.
Continue Reading Key Supply Chain Provisions of the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2024Key Topics to Watch as Congress Works to Fund Next Year’s DoD Budget
It’s that time of year again: the House and Senate have each passed their respective version of the National Defense Authorization Act for FY 2024 (“NDAA”) (H.R. 2670, S. 2226). The NDAA is a “must pass” set of policy programs and discretionary authorizations to fund Department of Defense (“DoD”) operations. Lawmakers are currently undertaking the arduous process of reconciling these bills, while jockeying to include topics of importance in the final legislation. The engrossed bills contain a number of significant provisions for defense contractors, technology providers, life science companies and commercial-item contractors – many of which we discuss briefly below and others that we will analyze in more depth in our NDAA series in the coming weeks. Subscribe to our blog here so that you do not miss these updates.
Continue Reading Key Topics to Watch as Congress Works to Fund Next Year’s DoD BudgetFiscal Year 2024 National Defense Authorization Act: More China-Related Measures on the Horizon
By Stephanie Barna & Daniel Raddenbach on
As the House and Senate Armed Services Committees prepare to mark up the Fiscal Year 2024 National Defense Authorization Act (NDAA), they are very likely to consider a number of China-related measures that have been recommended by the national security community and which could enjoy bipartisan support. These recommendations are generally focused on countering Chinese influence in the United States or increasing the United States’ relative power advantage in the Pacific region.
Continue Reading Fiscal Year 2024 National Defense Authorization Act: More China-Related Measures on the Horizon