Federal Agencies Need Better Information Sharing for Foreign Equipment Compliance, GAO Reports

A new report from the U.S. Government Accountability Office (GAO) has highlighted a critical need for improved information sharing among federal agencies regarding the prohibition of certain foreign-sourced telecommunications and surveillance equipment. The findings indicate that while agencies like the Department of Defense (DOD) and the General Services Administration (GSA) have established processes to comply with existing restrictions, they are not adequately disseminating crucial insights that could benefit other government entities. These insights, particularly concerning the affiliates and subsidiaries of prohibited Chinese companies, are essential for ensuring robust compliance with current and future regulations designed to protect U.S. national security.

The GAO’s review found that since the implementation of Section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, federal agencies have significantly reduced spending with five specific Chinese companies and their associated entities. As of March 2026, nearly 90 percent of companies holding active government contracts in fiscal year 2025 have publicly stated their non-reliance on equipment from these prohibited sources. Both the GSA and DOD have put in place mechanisms to prevent the procurement of prohibited equipment and services, and to vet contractors for their use of such technology. For instance, the GSA employs automated systems to remove prohibited items from its widely used Multiple Award Schedule contracts, and both agencies offer search tools within the System for Award Management to help contracting officers and purchase cardholders assess vendor compliance.

However, the report emphasizes that the knowledge gained by GSA and DOD through their implementation efforts is not being broadly shared across the federal government. This includes valuable intelligence about the parent companies’ affiliates and subsidiaries, as well as successful strategies for gaining deeper insight into complex supply chains. The GAO points to GSA’s plans to expand its use of customs data to track the origin of goods, a method previously identified as challenging but potentially effective, as an example of an insight that could be shared. By sharing their experiences and best practices, these agencies could significantly assist other government bodies in navigating current prohibitions and preparing for upcoming restrictions, such as those anticipated for semiconductors. This enhanced information exchange is crucial for improving overall compliance and safeguarding national security interests.

The GAO has issued four recommendations to address these deficiencies. These recommendations urge the GSA and DOD to periodically share collected information on subsidiaries and affiliates with relevant federal agencies, utilizing existing mechanisms where appropriate, such as those managed by the Cybersecurity and Infrastructure Security Agency. Additionally, the agencies are advised to coordinate with other federal entities to share insights derived from their Section 889 implementation experiences. This shared knowledge is intended to inform and improve agencies’ approaches to complying with existing mandates and preparing for future prohibition efforts. Both the GSA and DOD have concurred with these recommendations, signaling a commitment to enhancing interagency collaboration and strengthening national security measures related to foreign-sourced equipment. The report notes that the implementation status of these recommendations is currently listed as “Open,” with updated information to be provided as actions are confirmed.

Article by Mel Anara, based upon information from the U.S. Government Accountability Office

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