Federal Register / Vol. 83, No. 116 / Friday, June 15, 2018 / Rules and Regulations 28141 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 4, 13, 39, and 52 

[FAC 2005–99; FAR Case 2018–010; 

Item I; Docket 2018–0010, Sequence 1] 

RIN 9000–AN64 

Federal Acquisition Regulation; Use of 

Products and Services of Kaspersky 

Lab 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Interim rule. 

SUMMARY: DoD, GSA, and NASA are 

issuing an interim rule amending the 

Federal Acquisition Regulation (FAR) to 

implement a section of the National 

Defense Authorization Act for Fiscal 

Year 2018. 

DATES:

Effective Date: July 16, 2018. 

Applicability Dates: 

• Contracting officers shall include 

the clause at FAR 52.204–23, 

Prohibition on Contracting for 

Hardware, Software, and Services 

Developed or Provided by Kaspersky 

Lab or Other Covered Entities— 

• In solicitations issued on or after 

July 16, 2018, and resultant contracts; 

and 

• In solicitations issued before July 

16, 2018, provided award of the 

resulting contract(s) occurs on or after 

July 16, 2018. 

• Contracting officers shall modify, in 

accordance with FAR 1.108(d)(3), 

existing indefinite-delivery contracts to 

include the FAR clause for future 

orders, prior to placing any further 

orders on or after July 16, 2018. 

• If modifying an existing contract to 

extend the period of performance by 

more than 6 months, contracting officers 

should include the clause in accordance 

with 1.108(d). 

Comment Date: Interested parties 

should submit written comments to the 

Regulatory Secretariat on or before 

August 14, 2018 to be considered in the 

formulation of a final rule. 

ADDRESSES: Submit comments 

identified by FAC 2005–99, FAR Case 

2018–010, by any of the following 

methods: 

• Regulations.gov: http://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

searching for ‘‘FAR Case 2018–010’’. 

Select the link ‘‘Submit a Comment’’ 

that corresponds with ‘‘FAR Case 2018– 

010.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘FAR Case 2018– 

010’’ on your attached document. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(MVCB), ATTN: Lois Mandell, 1800 F 

Street NW, 2nd Floor, Washington, DC 

20405–0001. 

Instructions: Please submit comments 

only and cite FAC 2005–99, FAR Case 

2018–010, in all correspondence related 

to this case. All comments received will 

be posted without change to http://

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Camara Francis, Procurement Analyst, 

at 202–550–0935, for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat at 202–501– 

4755. Please cite FAC 2005–99, FAR 

Case 2018–010. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This interim rule revises the FAR to 

implement section 1634 of Division A of 

the National Defense Authorization Act 

(NDAA) for Fiscal Year (FY) 2018 (Pub. 

L. 115–91). Section 1634 of this law 

prohibits the use of hardware, software, 

and services of Kaspersky Lab and its 

related entities by the Federal 

Government on or after October 1, 2018. 

Implementation of this rule in the 

FAR should not impact or impair any 

other planned or ongoing efforts 

agencies may undertake to implement 

section 1634 of Division A of the NDAA 

for FY 2018, including consideration by 

agencies of the presence of hardware, 

software, or services developed or 

provided by Kaspersky Lab as a 

technical evaluation factor in the source 

selection process. 

II. Discussion and Analysis 

This rule amends FAR part 4, adding 

a new subpart 4.20, Prohibition on 

Contracting for Hardware, Software, and 

Services Developed or Provided by 

Kaspersky Lab, with a corresponding 

new contract clause at 52.204–23, 

Prohibition on Contracting for 

Hardware, Software, and Services 

Developed or Provided by Kaspersky 

Lab and Other Covered Entities. The 

rule also adds text in subpart 13.2, 

Actions at or Below the Micro-Purchase 

Threshold, to address section 1634 with 

regard to micro-purchases. 

To implement section 1634, the 

clause at 52.204–23 prohibits 

contractors from providing any 

hardware, software, or services 

developed or provided by Kaspersky 

Lab or its related entities, or using any 

such hardware, software, or services in 

the development of data or deliverables 

first produced in the performance of the 

contract. The contractor must also 

report any such hardware, software, or 

services discovered during contract 

performance; this requirement flows 

down to subcontractors. For clarity, the 

rule defines ‘‘covered entity’’ and 

‘‘covered article.’’ A covered entity 

includes the entities described in 

section 1634. A covered article includes 

hardware, software, or services that the 

Federal Government will use on or after 

October 1, 2018. 

As the Government considers 

additional actions to implement section 

1634, DoD, GSA, and NASA especially 

welcome input on steps that the 

Government could take to better identify 

and reduce the burden on contractors 

related to identifying covered articles. 

For example: 

• Is the prohibition scoped 

appropriately to protect the Government 

by including situations in which 

covered articles may be used in the 

development of data or deliverables first 

produced during contract performance, 

for example, under a systems 

development contract? 

• Are the Government’s analysis and 

estimates in sections VI and VII, 

including the estimate that 5 percent of 

contractors would be required to submit 

reports in accordance with the clause, 

reasonable? How could these estimates 

be improved? 

• If the Government were to consider 

establishing a list to publicly share 

information regarding products 

identified as meeting the definition of a 

covered article (i.e., excluded products), 

including those offered by third parties: 

• What protocols should the 

Government apply prior to placing a 

product on the excluded list (e.g., who 

should be reaching out, and to whom)? 

• Should different protocols apply 

depending on whether the product is 

made by the original equipment 

manufacturer, sold by a reseller, or 

customized by a firm? 

• When is it appropriate to leave a 

product on the excluded list indefinitely 

(e.g., to provide notice for those who 

have previously acquired the product)? 

• Are there steps that the 

Government can take to avoid 

inappropriately affecting the producer’s 

interests (e.g., allowing the firm to 

demonstrate that there is a new version 


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of the product that is free from concern 

and annotating the list accordingly)? 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold and for Commercial Items, 

Including Commercially Available Offthe-Shelf Items 

This rule adds a new contract clause 

at 52.204–23, Prohibition on Contracting 

for Hardware, Software, and Services 

Developed or Provided by Kaspersky 

Lab and Other Covered Entities, in order 

to implement section 1634 of the NDAA 

for FY 2018. Section 1634 of this law 

prohibits the use of hardware, software, 

and services developed or provided by 

Kaspersky Lab and related entities by 

the Federal Government on or after 

October 1, 2018. 

A. Applicability to Contracts at or Below 

the Simplified Acquisition Threshold 

41 U.S.C. 1905 governs the 

applicability of laws to acquisitions at 

or below the simplified acquisition 

threshold (SAT). Section 1905 generally 

limits the applicability of new laws 

when agencies are making acquisitions 

at or below the SAT, but provides that 

such acquisitions will not be exempt 

from a provision of law if: (i) The law 

contains criminal or civil penalties; (ii) 

the law specifically refers to 41 U.S.C. 

1905 and states that the law applies to 

contracts and subcontracts in amounts 

not greater than the SAT; or (iii) the 

FAR Council makes a written 

determination and finding that it would 

not be in the best interest of the Federal 

Government to exempt contracts and 

subcontracts in amounts not greater 

than the SAT from the provision of law. 

B. Applicability to Contracts for the 

Acquisition of Commercial Items, 

Including Commercially Available Offthe-Shelf Items 

41 U.S.C. 1906 governs the 

applicability of laws to contracts for the 

acquisition of commercial items, and is 

intended to limit the applicability of 

laws to contracts for the acquisition of 

commercial items. Section 1906 

provides that if a provision of law 

contains criminal or civil penalties, or if 

the FAR Council makes a written 

determination that it is not in the best 

interest of the Federal Government to 

exempt commercial item contracts, the 

provision of law will apply to contracts 

for the acquisition of commercial items. 

Finally, 41 U.S.C. 1907 states that 

acquisitions of commercially available 

off-the-shelf (COTS) items will be 

exempt from a provision of law unless 

the law (i) contains criminal or civil 

penalties; (ii) specifically refers to 41 

U.S.C. 1907 and states that the law 

applies to acquisitions of COTS items; 

(iii) concerns authorities or 

responsibilities under the Small 

Business Act (15 U.S.C. 644) or bid 

protest procedures developed under the 

authority of 31 U.S.C. 3551 et seq., 10 

U.S.C. 2305(e) and (f), or 41 U.S.C. 3706 

and 3707; or (iv) the Administrator for 

Federal Procurement Policy makes a 

written determination and finding that 

it would not be in the best interest of the 

Federal Government to exempt contracts 

for the procurement of COTS items from 

the provision of law. 

C. Determinations 

The FAR Council has determined that 

it is in the best interest of the 

Government to apply the rule to 

contracts at or below the SAT and for 

the acquisition of commercial items. 

The Administrator for Federal 

Procurement Policy has determined that 

it is in the best interest of the 

Government to apply this rule to 

contracts for the acquisition of COTS 

items. 

While the law does not specifically 

address acquisitions of commercial 

items, including COTS items, there is an 

unacceptable level of risk for the 

Government in buying hardware, 

software, or services developed or 

provided in whole or in part by 

Kaspersky Lab. This level of risk is not 

alleviated by the fact that the item being 

acquired has been sold or offered for 

sale to the general public, either in the 

same form or a modified form as sold to 

the Government (i.e., that it is a 

commercial item or COTS item), nor by 

the small size of the purchase (i.e., at or 

below the SAT). As a result, agencies 

may face increased exposure for 

violating the law and unknowingly 

acquiring a covered article absent 

coverage of these types of acquisitions 

by this rule. 

IV. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This rule has been 

designated a ‘‘significant regulatory 

action’’ under Executive Order 12866. 

Accordingly, the Office of Management 

and Budget (OMB) has reviewed this 

rule. This rule is not a major rule under 

5 U.S.C. 804. 

V. Executive Order 13771 

This rule is not subject to the 

requirements of E.O. 13771 because the 

rule is issued with respect to a national 

security function of the United States. 

VI. Regulatory Flexibility Act 

The change may have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of the Regulatory Flexibility 

Act 5 U.S.C. 601 et seq. The Initial 

Regulatory Flexibility Analysis (IRFA) is 

summarized as follows: 

The objective of the rule is to prescribe 

appropriate policies and procedures to 

enable agencies to determine and ensure that 

they are not purchasing products and 

services of Kaspersky Lab and its related 

entities for use by the Government on or after 

October 1, 2018. The legal basis for the rule 

is section 1634 of the NDAA for FY 2018, 

which prohibits Government use of such 

products on or after that date. 

Data from the Federal Procurement Data 

System (FPDS) for FY 2017 has been used as 

the basis for estimating the number of 

contractors that may be affected by this rule. 

Approximately 97,632 unique entities 

received new awards in Fiscal Year (FY) 

2017. Of these entities, 72,447 (74 percent) 

unique small entities received awards during 

2017. It is estimated that the reports required 

by this rule will be submitted by 5 percent 

of contractors, or 3,623 small entities. 

The rule requires contractors and 

subcontractors that are subject to the clause 

to report to the contracting officer, or for 

DoD, to the website listed in the clause, any 

discovery of a covered article during the 

course of contract performance. 

The rule does not duplicate, overlap, or 

conflict with any other Federal rules. 

Because of the nature of the prohibition 

enacted by section 1634, it is not possible to 

establish different compliance or reporting 

requirements or timetables that take into 

account the resources available to small 

entities or to exempt small entities from 

coverage of the rule, or any part thereof. DoD, 

GSA, and NASA were unable to identify any 

alternatives that would reduce the burden on 

small entities and still meet the objectives of 

section 1634. 

The Regulatory Secretariat has 

submitted a copy of the IRFA to the 

Chief Counsel for Advocacy of the Small 

Business Administration. A copy of the 

IRFA may be obtained from the 

Regulatory Secretariat. DoD, GSA, and 

NASA invite comments from small 

business concerns and other interested 

parties on the expected impact of this 

rule on small entities. 

DoD, GSA, and NASA will also 

consider comments from small entities 

concerning the existing regulations in 

subparts affected by this rule in 

accordance with 5 U.S.C. 610. Interested 


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parties must submit such comments 

separately and should cite 5 U.S.C. 610 

(FAR Case 2018–010) in 

correspondence. 

VII. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) (PRA) provides 

that an agency generally cannot conduct 

or sponsor a collection of information, 

and no person is required to respond to 

nor be subject to a penalty for failure to 

comply with a collection of information, 

unless that collection has obtained 

Office of Management and Budget 

(OMB) approval and displays a 

currently valid OMB Control Number. 

DoD, GSA, and NASA requested and 

OMB authorized emergency processing 

of an information collection involved in 

this rule, as OMB Control Number 

9000–0197, consistent with 5 CFR 

1320.13. DoD, GSA, and NASA have 

determined the following conditions 

have been met: 

a. The collection of information is 

needed prior to the expiration of time 

periods normally associated with a 

routine submission for review under the 

provisions of the Paperwork Reduction 

Act, in view of the deadline for this 

provision of the NDAA which was 

signed into law in December 2017 and 

requires action before the prohibition 

goes into effect on October 1, 2018. 

b. The collection of information is 

essential to the mission of the agencies 

to ensure the Federal Government does 

not purchase prohibited articles, and 

can respond appropriately if any such 

articles are not identified until after 

delivery or use. 

c. The use of normal clearance 

procedures would prevent the collection 

of information from contractors, for 

national security purposes, as discussed 

in section VIII of this preamble. 

Passage of the omnibus 

appropriations bill and the availability 

of additional funding for FY 18 has 

increased agency purchasing activity, 

and the information to be collected is 

necessary to ensure that this purchasing 

is done responsibly and consistent with 

national security. 

Moreover, DoD, GSA, and NASA 

cannot comply with the normal 

clearance procedures because public 

harm is reasonably likely to result if 

current clearance procedures are 

followed. Not only would agencies be 

more likely to purchase and install 

prohibited items, but even if such items 

were identified prior to the October 1 

date, agencies would incur substantial 

additional costs replacing such items, as 

well as additional administrative costs 

for reprocurement. 

DoD, GSA, and NASA intend to 

provide separate 60-day notice in the 

Federal Register requesting public 

comment on the information collection 

contained within this rule. 

Agency: DoD, GSA, and NASA. 

Type of Information Collection: New 

Collection. 

Title of Collection: Use of Products 

and Services of Kaspersky Lab. 

Affected Public: Private Sector— 

Business. 

Total Estimated Number of 

Respondents: 4,882. 

Average Responses per Respondents: 

5. 

Total Estimated Number of 

Responses: 24,410. 

Average Time per Response: 1.5 hour. 

Total Annual Time Burden: 36,615. 

OMB Control Number: 9000–0197. 

The public reporting burden for this 

collection of information consists of 

reports of identified covered articles 

during contract performance as required 

by 52.204–23. Reports are estimated to 

average 1.5 hour per response, including 

the time for reviewing definitions, 

searching existing data sources, 

gathering and maintaining the data 

needed, and completing and reviewing 

the report. 

The subsequent 60-day notice 

published by DoD, GSA, and NASA will 

invite public comments. 

VIII. Determination To Issue an Interim 

Rule 

A determination has been made under 

the authority of the Secretary of Defense 

(DoD), Administrator of General 

Services (GSA), and the Administrator 

of the National Aeronautics and Space 

Administration (NASA) that urgent and 

compelling reasons exist to promulgate 

this interim rule without prior 

opportunity for public comment. It is 

critical that the FAR is immediately 

revised to include the requirements of 

the law, which prohibits the Federal 

Government from using hardware, 

software, or services of Kaspersky Lab 

and its related entities on or after 

October 1, 2018. 

Although this prohibition does not 

apply until October 1, 2018, agencies 

and contractors must begin to take steps 

immediately to meet this deadline. In 

this regard, covered articles include 

hardware, software, and services 

acquired before October 1, 2018, that the 

Federal Government will use on or after 

October 1, 2018. Because so many IT 

products and services are used for more 

than a few months, it is critical that 

contractors be placed on notice as soon 

as possible of this prohibition so that 

agencies can ensure that they comply 

with the law and avoid acquisitions of 

covered articles that the Government 

will continue to use on or after October 

1, 2018. Pursuant to 41 U.S.C. 1707 and 

FAR 1.501–3(b), DoD, GSA, and NASA 

will consider public comments received 

in response to this interim rule in the 

formation of the final rule. 

List of Subject in 48 CFR Parts 1, 4, 13, 

39, and 52 

Government procurement. 

Dated: June 7, 2018. 

William F. Clark, 

Director, Office of Governmentwide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Governmentwide Policy. 

Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 1, 4, 13, 39, and 52 

as set forth below: 

■ 1. The authority citation for 48 CFR 

parts 1, 4, 13, 39, and 52 continues to 

read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 51 U.S.C. 20113. 

PART 1—FEDERAL ACQUISITION 

REGULATIONS SYSTEM 

1.106 [Amended] 

■ 2. Amend section 1.106 by adding to 

the table, in numerical sequence, FAR 

segment ‘‘52.204–23’’ and its 

corresponding OMB control number 

‘‘9000–0197’’. 

PART 4—ADMINISTRATIVE MATTERS 

■ 3. Add subpart 4.20 to read as follows: 

SUBPART 4.20—PROHIBITION ON 

CONTRACTING FOR HARDWARE, 

SOFTWARE, AND SERVICES 

DEVELOPED OR PROVIDED BY 

KASPERSKY LAB 

Sec. 

4.2001 Definitions. 

4.2002 Prohibition. 

4.2003 Notification. 

4.2004 Contract clause. 

SUBPART 4.20—PROHIBITION ON 

CONTRACTING FOR HARDWARE, 

SOFTWARE, AND SERVICES 

DEVELOPED OR PROVIDED BY 

KASPERSKY LAB 

4.2001 Definitions 

As used in this subpart— 

Covered article means any hardware, 

software, or service that— 

(1) Is developed or provided by a 

covered entity; 

(2) Includes any hardware, software, 

or service developed or provided in 

whole or in part by a covered entity; or 

(3) Contains components using any 

hardware or software developed in 

whole or in part by a covered entity. 

Covered entity means— 


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28144 Federal Register / Vol. 83, No. 116 / Friday, June 15, 2018 / Rules and Regulations 

(1) Kaspersky Lab; 

(2) Any successor entity to Kaspersky 

Lab; 

(3) Any entity that controls, is 

controlled by, or is under common 

control with Kaspersky Lab; or 

(4) Any entity of which Kaspersky Lab 

has a majority ownership. 

4.2002 Prohibition. 

Section 1634 of Division A of the 

National Defense Authorization Act for 

Fiscal Year 2018 (Pub. L. 115–91) 

prohibits Government use on or after 

October 1, 2018, of any hardware, 

software, or services developed or 

provided, in whole or in part, by a 

covered entity. Contractors are 

prohibited from— 

(a) Providing any covered article that 

the Government will use on or after 

October 1, 2018; and 

(b) Using any covered article on or 

after October 1, 2018, in the 

development of data or deliverables first 

produced in the performance of the 

contract. 

4.2003 Notification. 

When a contractor provides 

notification pursuant to 52.204–23, 

follow agency procedures. 

4.2004 Contract clause. 

The contracting officer shall insert the 

clause at 52.204–23, Prohibition on 

Contracting for Hardware, Software, and 

Services Developed or Provided by 

Kaspersky Lab and Other Covered 

Entities, in all solicitations and 

contracts. 

PART 13—SIMPLIFIED ACQUISITION 

PROCEDURES 

■ 4. Amend section 13.201 by adding 

paragraph (i) to read as follows: 

13.201 General. 

* * * * * 

(i) Do not purchase any hardware, 

software, or services developed or 

provided by Kaspersky Lab that the 

Government will use on or after October 

1, 2018. (See 4.2002.) 

PART 39—ACQUISITION OF 

INFORMATION TECHNOLOGY 

■ 5. Amend section 39.101 by adding 

paragraph (e) to read as follows: 

39.101 Policy. 

* * * * * 

(e) Contracting officers shall not 

purchase any hardware, software, or 

services developed or provided by 

Kaspersky Lab that the Government will 

use on or after October 1, 2018. (See 

4.2002.) 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 6. Add section 52.204–23 to read as 

follows: 

52.204–23 Prohibition on Contracting for 

Hardware, Software, and Services 

Developed or Provided by Kaspersky Lab 

and Other Covered Entities. 

As prescribed in 4.2004, insert the 

following clause: 

Prohibition on Contracting for 

Hardware, Software, and Services 

Developed or Provided by Kaspersky 

Lab and Other Covered Entities (Jul 

2018) 

(a) Definitions. As used in this clause— 

Covered article means any hardware, 

software, or service that— 

(1) Is developed or provided by a covered 

entity; 

(2) Includes any hardware, software, or 

service developed or provided in whole or in 

part by a covered entity; or 

(3) Contains components using any 

hardware or software developed in whole or 

in part by a covered entity. 

Covered entity means— 

(1) Kaspersky Lab; 

(2) Any successor entity to Kaspersky Lab; 

(3) Any entity that controls, is controlled 

by, or is under common control with 

Kaspersky Lab; or 

(4) Any entity of which Kaspersky Lab has 

a majority ownership. 

(b) Prohibition. Section 1634 of Division A 

of the National Defense Authorization Act for 

Fiscal Year 2018 (Pub. L. 115–91) prohibits 

Government use of any covered article. The 

Contractor is prohibited from— 

(1) Providing any covered article that the 

Government will use on or after October 1, 

2018; and 

(2) Using any covered article on or after 

October 1, 2018, in the development of data 

or deliverables first produced in the 

performance of the contract. 

(c) Reporting requirement. (1) In the event 

the Contractor identifies a covered article 

provided to the Government during contract 

performance, or the Contractor is notified of 

such by a subcontractor at any tier or any 

other source, the Contractor shall report, in 

writing, to the Contracting Officer or, in the 

case of the Department of Defense, to the 

website at https://dibnet.dod.mil. For 

indefinite delivery contracts, the Contractor 

shall report to the Contracting Officer for the 

indefinite delivery contract and the 

Contracting Officer(s) for any affected order 

or, in the case of the Department of Defense, 

identify both the indefinite delivery contract 

and any affected orders in the report 

provided at https://dibnet.dod.mil. 

(2) The Contractor shall report the 

following information pursuant to paragraph 

(c)(1) of this clause: 

(i) Within 1 business day from the date of 

such identification or notification: The 

contract number; the order number(s), if 

applicable; supplier name; brand; model 

number (Original Equipment Manufacturer 

(OEM) number, manufacturer part number, or 

wholesaler number); item description; and 

any readily available information about 

mitigation actions undertaken or 

recommended. 

(ii) Within 10 business days of submitting 

the report pursuant to paragraph (c)(1) of this 

clause: Any further available information 

about mitigation actions undertaken or 

recommended. In addition, the Contractor 

shall describe the efforts it undertook to 

prevent use or submission of a covered 

article, any reasons that led to the use or 

submission of the covered article, and any 

additional efforts that will be incorporated to 

prevent future use or submission of covered 

articles. 

(d) Subcontracts. The Contractor shall 

insert the substance of this clause, including 

this paragraph (d), in all subcontracts, 

including subcontracts for the acquisition of 

commercial items. 

(End of clause) 

■ 7. Amend section 52.212–5 by— 

■ a. Revising the date of the clause; 

■ b. Redesignating paragraphs (a)(2) 

through (4) as paragraphs (a)(3) through 

(5), respectively, and adding a new 

paragraph (a)(2); 

■ c. Redesignating paragraphs (e)(1)(iii) 

through (xxi) as paragraphs (e)(1)(iv) 

through (xxii), respectively, and adding 

a new paragraph (e)(1)(iii); and 

■ d. In Alternate II: 

■ i. Revising the date of the alternate; 

and 

■ ii. Redesignating paragraphs 

(e)(1)(ii)(C) through (S) as paragraphs 

(e)(1)(ii)(D) through (T), respectively, 

and adding a new paragraph (e)(1)(ii)(C). 

The revisions and additions read as 

follows: 

52.212–5 Contract Terms and Conditions 

Required To Implement Statutes or 

Executive Orders—Commercial Items. 

* * * * * 

Contract Terms and Conditions 

Required To Implement Statutes or 

Executive Orders—Commercial Items 

(Jul 2018) 

* * * * * 

(a) * * * 

____ (2) 52.204–23, Prohibition on 

Contracting for Hardware, Software, and 

Services Developed or Provided by 

Kaspersky Lab and Other Covered Entities 

(Jul 2018) (Section 1634 of Pub. L. 115–91). 

* * * * * 

(e)(1) * * * 

(iii) 52.204–23, Prohibition on Contracting 

for Hardware, Software, and Services 

Developed or Provided by Kaspersky Lab and 

Other Covered Entities (Jul 2018) (Section 

1634 of Pub. L. 115–91). 

* * * * * 

Alternate II (Jul 2018). * * * 

* * * * * 

(e)(1) * * * 

(ii) * * * 

(C) 52.204–23, Prohibition on Contracting 

for Hardware, Software, and Services 


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Developed or Provided by Kaspersky Lab and 

Other Covered Entities (Jul 2018) (Section 

1634 of Pub. L. 115–91). 

* * * * * 

■ 8. Amend section 52.213–4 by— 

■ a. Revising the date of the clause; and 

■ b. Redesignating paragraphs (a)(1)(ii) 

through (vii) as paragraphs (a)(1)(iii) 

through (viii), respectively, and adding 

a new paragraph (a)(1)(ii). 

The revision and addition read as 

follows: 

52.213–4 Terms and Conditions— 

Simplified Acquisitions (Other Than 

Commercial Items). 

* * * * * 

Terms and Conditions—Simplified 

Acquisitions (Other than Commercial 

Items) (Jul 2018) 

(a) * * * 

(1) * * * 

(ii) 52.204–23, Prohibition on Contracting 

for Hardware, Software, and Services 

Developed or Provided by Kaspersky Lab and 

Other Covered Entities (Jul 2018) (Section 

1634 of Pub. L. 115–91). 

* * * * * 

■ 9. Amend section 52.244–6 by— 

■ a. Revising the date of the clause; 

■ b. Redesignating paragraphs (c)(1)(iv) 

through (xviii) as paragraphs (c)(1)(v) 

through (xix), respectively, and adding 

a new paragraph (c)(1)(iv). 

The revision and addition read as 

follows: 

52.244–6 Subcontracts for Commercial 

Items. 

* * * * * 

Subcontracts for Commercial Items (Jul 

2018) 

* * * * * 

(c)(1) * * * 

(iv) 52.204–23, Prohibition on Contracting 

for Hardware, Software, and Services 

Developed or Provided by Kaspersky Lab and 

Other Covered Entities (Jul 2018) (Section 

1634 of Pub. L. 115–91). 

* * * * * 

[FR Doc. 2018–12847 Filed 6–14–18; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 9, 12, 13, and 52 

[FAC 2005–99; FAR Case 2017–018; 

Item II; Docket No. 2017–0018, Sequence 

No. 1] 

RIN 9000–AN57 

Federal Acquisition Regulation: 

Violations of Arms Control Treaties or 

Agreements With the United States 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Interim rule. 

SUMMARY: DoD, GSA, and NASA are 

issuing an interim rule amending the 

Federal Acquisition Regulation (FAR) to 

implement a section of the National 

Defense Authorization Act for Fiscal 

Year 2017 that addresses measures 

against persons involved in activities 

that violate arms control treaties or 

agreements with the United States. 

DATES:

Effective: June 15, 2018. 

Comment Date: Interested parties 

should submit written comments to the 

Regulatory Secretariat Division at one of 

the addresses shown below on or before 

August 14, 2018 to be considered in the 

formation of the final rule. 

ADDRESSES: Submit comments in 

response to FAC 2005–99, FAR Case 

2017–018, by any of the following 

methods: 

• Regulations.gov: http://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

searching for ‘‘FAR Case 2017–018.’’ 

Select the link ‘‘Comment Now’’ that 

corresponds with ‘‘FAR Case 2017– 

018.’’ Follow the instructions provided 

on the screen. Please include your 

name, company name (if any), and 

‘‘FAR Case 2017–018’’ on your attached 

document. 

• Mail: General Services 

Administration, Regulatory Secretariat 

Division (MVCB), ATTN: Ms. Lois 

Mandell, 1800 F Street NW, 2nd Floor, 

Washington, DC 20405. 

Instructions: Please submit comments 

only and cite FAC 2005–99, FAR Case 

2017–018, in all correspondence related 

to this case. All comments received will 

be posted without change to http://

www.regulations.gov, including any 

personal and/or business confidential 

information provided. To confirm 

receipt of your comment(s), please 

check www.regulations.gov, 

approximately two to three days after 

submission to verify posting (except 

allow 30 days for posting of comments 

submitted by mail). 

FOR FURTHER INFORMATION CONTACT: Ms. 

Cecelia L. Davis, Procurement Analyst, 

at 202–219–0202 for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat Division at 

202–501–4755. Please cite FAC 2005– 

99, FAR Case 2017–018. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This interim rule amends the FAR to 

implement a section of the National 

Defense Authorization Act (NDAA) for 

Fiscal Year 2017 that addresses 

measures against persons involved in 

activities that violate arms control 

treaties or agreements with the United 

States. This rule amends FAR part 9, 

Contractor Qualifications, and adds a 

provision at FAR 52.209–13 to 

implement section 1290 of the National 

Defense Authorization Act for Fiscal 

Year 2017 (Pub. L. 114–328), codified at 

22 U.S.C. 2593e. 

The President submits annually to 

Congress a report prepared by the 

Secretary of State with the concurrence 

of the Director of Central Intelligence 

and in consultation with the Secretary 

of Defense, the Secretary of Energy, and 

the Chairman of the Joint Chiefs of Staff, 

on the status of United States policy and 

actions with respect to arms control, 

nonproliferation, and disarmament, 

pursuant to section 403 of the Arms 

Control and Disarmament Act (22 U.S.C. 

2593a). In this report, the Secretary of 

State assesses adherence to and 

compliance with arms control, 

nonproliferation, and disarmament 

agreements and commitments by the 

United States and other countries. This 

report is submitted in unclassified form, 

with classified annexes, as appropriate. 

The Department of State’s most recent 

unclassified report submitted in April 

2018 to Congress is available at https:// 

www.state.gov/t/avc/rls/rpt/. 

The Secretary of the Treasury is 

required to submit to the appropriate 

Congressional committees a report, 

consistent with the protection of 

intelligence sources and methods, 

identifying every person with respect to 

whom there is credible information 

indicating that the person is— 

• An individual who is a citizen, 

national, or permanent resident of, or an 

entity organized under the laws of, a 

noncompliant country; and 


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