Over the last month, we have issued multiple client alerts outlining developments related to the Chinese military company covered lobbyist prohibition enacted by Section 851 of the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2025, codified at 10 U.S.C. § 4663. This is a follow-up to those prior alerts to address recent guidance posted by the Department of Defense.
The Department of Defense has now published a two-page guidance document, titled “PROJECT CLEAR Contractor Lobbying Evaluation for Adversarial Relationships,” and a webpage concerning the enforcement of the Section 851 covered lobbyist prohibition. Notably, the guidance document focuses on relationships with Chinese military companies appearing on the Department’s 1260H list, as opposed to the broader definition of Chinese military companies included in a few sections of the class deviation that the Department issued to implement the prohibition in the Defense Federal Acquisition Regulation Supplement (“DFARS”). In this alert, we summarize the new guidance and its implications for defense contractors retaining outside consultants.