In November 2018, GSA will refresh its schedule solicitations to incorporate the recent Federal Acquisition Regulation (FAR) prohibition on the use of products and services developed by Kaspersky Labs, as well as clarify the application of the 33.33% limitation for Order Level Materials (OLMs). The refreshes add and update clauses and provisions related to FAR Case 2018-010, Use of Products and Services of Kaspersky Lab, and GSAR Case 2016-G506 (OLM Technical Amendment). Individual schedules may update additional clauses and provisions to make clarifications, administrative corrections, and other required changes.
Updates regarding the prohibition on Russian cybersecurity company Kaspersky Labs are a result of Section 1634 of the National Defense Authorization Act for 2018 (NDAA). Contractors are prohibited from providing any hardware, software, or services developed by Kaspersky Lab, including any successor entity, or an entity controlled by or owned by Kaspersky Lab as of October 1, 2018. Contractors have the duty to report any instance in violation of this clause within one day of identifying such violation. Additionally, contractors must flow down FAR 52.204-23 to all subcontractors.
In regard to OLMs, the refresh implements a recent technical amendment to GSAR 552.538-82 clarifying the application of the 33.33% limitation for OLMs on Blanket Purchase Agreements (BPAs). OLMs are supplies and/or services acquired in direct support of an individual order placed against a schedule contract or BPA. The limitation will now be calculated based on the cumulative value of OLMs across BPA orders instead of on each individual BPA order. An updated OLM SIN description is included ONLY in the seven (7) OLM-authorized Schedule solicitations.
For background on OLMs, please consult my earlier blog. For additional information, including vendor training, please visit the GSA OLM home page. To discuss what the Kaspersky Labs requirement means for your purchasing system and subcontractor agreements, please contact Tom Marcinko. For any GSA questions, please contact Vanessa Payne or one of our government contracting specialists at 301.231.6200.