For federal employees and contractors, it’s the end for TikTok. The Consolidated Appropriations Act passed by Congress included a ban on using TikTok on government devices.
TikTok is a popular social media app that allows users to create and share short-form videos on any topic. TikTok’s mission statement is to “inspire creativity and bring joy,” but that joy will no longer be authorized on or spread through devices used for federal contracting.
The new rule
Effective June 2, all solicitations have included a new federal acquisition regulation clause, FAR 52.204–27, Prohibition on a ByteDance Covered Application. Existing solicitations issued before the effective date have until July 3 to comply.
Contracting officers must modify indefinite-delivery-indefinite-quantity contracts in accordance with FAR 1.108(d)(3), FAR conventions, to include this clause by July 3. Contracting officers are also required to include this clause when exercising an option or modifying an existing contract, task or delivery order to extend the period of performance.
According to the rule, this includes all “equipment or interconnected system or subsystem of equipment.” The rule further explains that the “prohibition applies to devices regardless of whether the device is owned by the government, the contractor, or the contractor’s employees.” Devices such as PCs, tablets and mobile phones used for government contracting all fall under the rule.
This TikTok issue dates to 2020, when the federal government contemplated banning the platform over its ties to China through its parent company, ByteDance. The government viewed the app as a national security threat and threatened to have lawmakers ban the app unless it sold itself to a U.S.-based company. Last year, lawmakers’ scrutiny of the app resurfaced after it was reported that China-based employees repeatedly accessed U.S. user data.
The reaction
Bloomberg surveyed 650 people across the United States about their TikTok activity. The survey was conducted from March 21 to March 23. The respondents were from diverse religious, income and age groups.
The survey found that almost 40% of respondents lean toward opposing or strongly oppose a ban on TikTok, despite concerns about data surveillance and ByteDance’s potential access to the app’s data. We expect that many government contractors and employees will initially be resistant to comply with the new rule.
Source: Bloomberg
Based on the survey, most respondents (88%) did not decrease their TikTok activity even after learning that it was owned by a Chinese entity and could pose risks to privacy.
Source: Bloomberg
In fact, the percentage of respondents who spent more than one hour per day on TikTok was higher than the percentage who spent that amount of time on YouTube or Facebook.
Source: Bloomberg
The U.S. government has strongly urged federal agencies and contractors to comply with the interim FAR rule. We recommend federal contractors study the scope and impact of this new rule and take action to comply. Given the rise in the app’s popularity, contractors will need to communicate the new rule, adjust related documented policies and procedures, and train their employees immediately.
To be compliant, organizations will need employees to remove the app. Contractors must also prohibit future app installations, including using TikTok on an internet browser.
