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Wednesday, 12 August 2020 12:29




August 12, 2020


NCSC Briefs Agencies across the U.S. Government on Supply Chain Threats Posed by Five Specified Chinese Companies

Briefings designed to help agencies implement provisions of the FY19 NDAA



Over the past two weeks, the National Counterintelligence and Security Center (NCSC) has been providing classified briefings and other assistance to federal procurement executives, chief information officers and chief information security officers from across the U.S. Government on supply chain threats and risks stemming from contracting with five Chinese companies.


The NCSC-led supply chain security briefings are designed to assist federal agencies implement Section 889 of the FY19 National Defense Authorization Act (NDAA).


One provision of the NDAA prohibits the U.S. Government from directly using goods and services from five specified Chinese companies -- Huawei, ZTE Corporation, Hytera Communications, Hanghzou Hikvision and Dahua Technology Company.


Another, broader, provision of Section 889 prohibits federal agencies from contracting with any company that uses goods and services from these five Chinese firms. This particular prohibition takes effect on August 13, 2020, unless a federal agency authorizes a waiver for a specific company, which can only be granted by the agency head after receiving NCSC supply chain security guidance.


The U.S. Government has identified these Chinese companies as high-risk vendors that pose a threat to U.S. economic and national security. The contracting prohibitions related to the Chinese companies support a key objective of the National Counterintelligence Strategy of the United States 2020-2022, namely, to reduce threats to key U.S. supply chains.


“These unprecedented briefings underscore NCSC’s commitment to elevate supply chain security in the federal acquisition process, in keeping with the National Counterintelligence Strategy,” said NCSC Director William R. Evanina. “In partnership with the Office of Director of National Intelligence’s National Intelligence Council, we are providing threat information on foreign efforts to subvert the U.S. supply chain and empowering federal procurement and contracting officers who share in the responsibility for protecting the federal supply chain.”

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