On August 26, 2021, the Federal Acquisition Security Council (FASC) issued its final rule to implement the 2018 Federal Acquisition Supply Chain Security Act. See 86 Fed. Reg. 47582 (Aug. 26, 2021). The FASC made minor modifications and clarifications to its interim rule, published at 85 Fed. Reg. 54263 (Sept. 1, 2020), but declined to address many of the recommendations of commenting parties, either rejecting them or asserting that the interim rule or existing laws already provide adequate processes.
As cybersecurity and surveillance threats become more prevalent, the U.S. government will continue to ramp up efforts to address the threats through a range of legal authorities. As a result, federal contractors should expect to see increased action by government agencies to address supply chain security risks, including the issuance of removal and exclusion orders pursuant to this final rule.
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