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DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement to implement section 1603 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2018, which amended 10 U.S.C. 2279 to establish that the Secretary of Defense may not enter into a contract for satellite services with a foreign entity if the Secretary reasonably believes that entering into such contract would create an unacceptable cybersecurity risk for the Department of Defense. The DFARS is being amended to reflect this restriction.

The rule also implements section 1296 of the NDAA for FY 2017, which prohibits purchase of items originating in the People’s Republic of China that meet the definition of goods and services controlled as munitions items when moved to the Commerce Control List of the Export Administration Regulations of the Department of Commerce.  Section 1296 amends section 1211 of the NDAA for FY 2006 to prohibit purchase from any Communist Chinese military company, through a contract or subcontract (at any tier), of goods and services controlled as munitions items on the 600 series of the Commerce Control List (CCL) of the Export Administration Regulations of the Department of Commerce.  Therefore, section 1296 has extended the prohibition to cover items listed in the 600 series of the CCL.