Time’s run out for TikTok with government contractors

New FAR and state rules clamp down on the social media platform

By Skyler Handl, Corporate Counsel Public Sector

You’ve likely heard the rumblings in the news, at both the federal and state levels, regarding national security concerns and the popular social media application TikTok, owned by ByteDance. On August 6, 2020, President Trump issued Executive Order 13942 banning the use of TikTok in the United States. TikTok received a preliminary injunction that prohibited the enforcement of the executive order, and President Biden rescinded the executive order in 2021. In early 2023, Congress acted to renew the effort to restrict TikTok. Their action included a prohibition on TikTok in the Consolidated Appropriations Act 2023 which directed the Office of Management and Budget (“OMB”) to further implement the ban. OMB released guidance (M-23-13) on February 27, 2023, extending the prohibition to federal contractors.

On June 2, 2023, the FAR council published FAR Case 2023-010 ( Prohibition on a ByteDance Covered Application). This interim rule amends FAR part 4, adding a new subpart 4.22, Prohibition on a ByteDance Covered Application, with a corresponding new contract clause at 52.204–27, Prohibition on a ByteDance Covered Application. The FAR clause at 52.204–27 prohibits contractors from having or using a covered application, including TikTok or any successor application of TikTok, on any information technology owned or managed by the federal government or on any information technology (IT) used or provided by the contractor under a contract, including equipment provided by the contractor’s employees.

Debt ceiling deal impacts IT budgets

What federal IT contractors need to know about the legislation

By Grier Eagan, Senior Market Intelligence Analyst

With the expected passing of the debt ceiling legislation, which locks in federal civilian spending until January 2025, contractors who sell IT to the government face a shifting landscape. While the Federal Civilian FY24 IT budget will cap at $56.4 billion, identical to the budget passed in FY22, opportunities still exist for those nimble enough to adapt.

Despite this cap representing a $6.9 billion decrease from the IT budget originally requested for FY24, IT vendors should take solace in the fact that the FY25 budget will see a marginal 1 percent increase. However, considering the current annual inflation rate of 4.93 percent as per the Consumer Price Index, this means that the federal civilian government will have approximately 4 percent less buying power under the FY25 budget than the FY24 budget.

Selling cyber now means understanding FITARA

Feds update FITARA metrics to include agency performance in critical cyber needs.

By Tara Franzonello, Program Development Manager

The U.S. House of Representatives Committee on Oversight and Reform (COR) released its 15th  Federal Information Technology Acquisition Reform Act (FITARA) scorecard in December 2022. This latest scorecard introduced a new category for cyber security. 

Agencies’ protests against enacting this key IT legislation have high visibility from agency chief information officers (CIOs) to the General Accounting Office (GAO) to Congress. Technology vendors have an advantage over their competition if they can help agency customers show progress in measured categories. This is now particularly important for FITARA because agency self-assessment for compliance happens every spring.

Why FITARA matters for federal cyber security sales