The U.S. Department of Homeland Security (DHS) has issued an order restricting DeepSeek artificial intelligence (AI) products and related services from federal civilian agency IT systems and procurement. The order cites supply chain security concerns, including risks involving sensitive information and embedded technology. The notice is scheduled for publication in the Federal Register on October 20, 2026. Read the official DHS order.

Important: The order does not establish a universal ban on all AI tools or all private-sector use of DeepSeek. Contractors should confirm their specific obligations with their IT/security or contracts team and seek legal guidance when necessary.

What Is DeepSeek, and Why Is DHS Concerned?

DeepSeek is an artificial intelligence (AI) platform developed by a Chinese company that offers tools for answering questions, analyzing information, writing content, and assisting with coding. DHS has raised concerns about potential data security and supply chain risks, including the possibility that sensitive information entered into the platform could be exposed to foreign access and that DeepSeek technology embedded in other products could create security vulnerabilities. These concerns are particularly relevant to federal contractors that handle government or other sensitive information.

What Does This Mean for Federal Contractors?

The restrictions apply to federal civilian agency systems and procurement, but contractors should not assume the order automatically prohibits every private business from using DeepSeek for all purposes. Applicability depends on the order, contract requirements, and agency instructions. Contractors should review their use of DeepSeek and related products, particularly when supporting federal contracts or handling government information.

Recommended Actions

• Review AI usage: Identify whether employees or IT systems use DeepSeek or software and services built using DeepSeek technology.

• Check government systems: Do not install or use restricted products on government-furnished equipment or agency networks contrary to agency instructions.

• Review contract requirements: Check applicable contract clauses, agency-specific policies, and supply chain security requirements. FAR 52.204-30 addresses restrictions on covered products and sources under applicable Federal Acquisition Supply Chain Security Act (FASCSA) orders.

• Protect sensitive information: Do not enter Controlled Unclassified Information (CUI), confidential client information, employee records, or other sensitive data into unapproved AI tools.

• Coordinate with IT and contracts personnel: Determine whether any affected products or services are used in contract performance and whether the agency requires removal, reporting, or other action.

Employees should follow company AI usage and information security policies when using AI tools for work. Employers should coordinate with IT and contract management before issuing company-wide restrictions or directing employees to remove software.

Additional Resources

• Official DHS Order – Federal Register Notice

• FAR 52.204-30 – FASCSA Orders—Prohibition

• System for Award Management (SAM.gov) — Search for applicable FASCSA orders and review relevant contract requirements.