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Defense Dept. Modifies Berry Amendment Requirements, Seeks Input on Satellite Restrictions

Friday, December 21, 2018
Sandler, Travis & Rosenberg Trade Report

The Department of Defense has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement sections of the National Defense Authorization Act for Fiscal Year 2017. Specifically, Section 817 of the NDAA removes the exception to the domestic source restriction of the Berry Amendment (10 U.S.C. 2533a) for acquisitions at or below the simplified acquisition threshold when buying athletic footwear to be furnished to enlisted members of the Armed Forces upon their initial entry into the Armed Forces. Section 881(b), meanwhile, allows the acquisition of certain items from Australia and the United Kingdom for which purchase is currently restricted to items from the U.S. or Canada.

Separately, the Defense Dept. has issued an interim rule that further amends the DFARS to implement certain sections of the NDAA imposing additional prohibitions with regard to the acquisition of certain foreign commercial satellite services, such as cybersecurity risk and source of satellites and launch vehicles used to provide the foreign commercial satellite services. It also expands the definition of “covered foreign country” to include Russia and prohibits the purchase of items from a Chinese military company that meet the definition of goods and services controlled as munitions items when moved to the Commerce Control List. Comments on this rule may be submitted by Feb. 19.

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