The Pentagon’s top acquisition official said last Thursday the department’s temporary waiver from a new supply chain rule barring the use of equipment from Chinese telecommunications companies only lasts through the end of September and covers low-risk commodities.
Ellen Lord, the under secretary of defense for Acquisition and Sustainment, told reporters she does not expect DoD will seek a broader waiver request from the Office of the Director of National Intelligence (ODNI).
“We fully support the intent of the prohibition and we are working to ensure the rule results in the removal of these products from our supply chain,” Lord said. “The waiver covers items that are considered low-risk to national security, such as food, clothing, maintenance services, construction materials that are not electronic and numerous other items that ODNI has identified as low-risk commodities.”
The new rule, which went into effect August 13 and was approved as part of the fiscal year 2019 defense authorization bill, bars the federal government from procuring technology built by Chinese firms Huawei and ZTE and ensuring any current equipment is eliminated from their systems.
Lord said the temporary waiver is intended to ensure the department has adequate time “to review the full details of the rule implementation using additional information from DoD.”
“The waiver received is not for our major weapon systems or any support activity related to them. The short-term waiver is important so that end of fiscal year activity will not be impacted,” Lord said. “As we eliminate Chinese telecommunications equipment from our supply chain, we know that there are challenges for our industry partners. But we are pleased to see the defense industrial base stepping up smartly. This is the right thing for our national security.”