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ARTICLE · 18 DECEMBER 2024

DoD Issues Proposed Rule For New Disclosures On Foreign Review Of Computer Code

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On November 15, 2024, the Department of Defense ("DoD") issued a long-awaited Proposed Rule to implement Section 1655 of the National Defense Authorization Act for Fiscal Year 2019.

United StatesGovernment, Public Sector
Townsend Bourne
Townsend Bourne
Sidney Howe*
Sidney Howe*
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On November 15, 2024, the Department of Defense ("DoD") issued a long-awaited Proposed Rule to implement Section 1655 of the National Defense Authorization Act for Fiscal Year 2019.

Section 1655 prohibits DoD from acquiring technology, cybersecurity, industry control, or weapon system products or services unless the contractor provides certain disclosures. Specifically, per newly proposed Defense Federal Acquisition Regulation Supplement ("DFARS") clauses (1) DFARS 252.239-70YY (Preaward Disclosure of Foreign Obligations-Representation) and (2) DFARS 252.239-70ZZ (Postaward Disclosure of Foreign Obligations), the contractor must disclose whether source code and/or computer code was shared with a foreign person or government, and must maintain its foreign obligation disclosures in the Electronic Data Access ("EDA") system. Further, under DFARS 252.239-70ZZ, contractors will be required to flow down the requirement in subcontracts.

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