GAO urges GSA, DOD to share supply-chain data on prohibited Chinese gear
All federal agencies must receive subsidiary and affiliate data from GSA and DOD beginning immediately to improve compliance with Section 889 prohibitions.
The Government Accountability Office reports that Section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 bars federal agencies from procuring covered telecommunications and surveillance equipment and services from five specific Chinese companies, their affiliates, or subsidiaries. After implementation in fiscal year 2019, agencies reduced spending with the five companies through fiscal year 2025, with no spending in three of those years, and as of March 2026 nearly 90 percent of companies with active government contracts in fiscal year 2025 publicly stated they do not use equipment from the prohibited firms.
The General Services Administration and the Department of Defense have established processes to avoid prohibited purchases. GSA's automated tools remove restricted items from its Multiple Award Schedule contracts, and both agencies provide search capabilities in the System for Award Management for contracting officers and purchase-card users. DOD and GSA also plan to expand use of customs data to trace product origins, a capability GAO previously identified as challenging.
GAO issued four recommendations urging GSA and DOD to periodically share subsidiary and affiliate information they collect, and to coordinate with other federal agencies by leveraging the Cybersecurity and Infrastructure Security Agency's existing mechanisms. Both agencies concurred with the recommendations; the status of each remains open.
GAO notes that broader information sharing could help agencies meet upcoming statutory prohibitions, such as those targeting semiconductors, and would enhance overall supply-chain visibility across the federal procurement landscape.
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