2019 NDAA Section 889
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NDAA Section 889 Compliance
Section 889(a)(1)(B) of the 2019 National Defense Authorization Act (NDAA) prohibits recipients of federal funding awards from using or procuring certain covered telecommunications equipment or services. Section 889 regulations apply to grants, contracts and cooperative agreements, including outgoing subcontracts and subawards.
The Section 889 restrictions went into effect on August 13, 2020, for federal grant recipients under a new section to 2 CFR contained in 2 CFR §200.216.
Covered Technologies
Covered telecommunications and/or video surveillance equipment and service providers include:
- Huawei Technologies Company
- ZTE Corporation
- Hytera Communications Corporation
- Hangzhou Hikvision Digital Technology Company
- Dahua Technology Company
Any subsidiary or affiliate of the entities listed above.
See http://www.govcwiki.org/images/b/ba/List_of_NDAA_889_Prohibited_Suppliers.pdf
All Purchases and Uses
Section 889’s restrictions apply across the board to all contractor purchases of any dollar amount and any proposed use, including small P-Card purchases and other purchases, and regardless of whether or not the use relates to a federal grant, contract, or other agreement.
FAR 52.204-24(d)(2) reads,
"It [ ] does, [ ] does not use covered telecommunications equipment or services, or use any equipment, system, or service that uses covered telecommunications equipment or services."
This means the contractor does not use this equipment at all, across the board, whether or not on a USG Contract.
Reporting Requirement
Contractors must report to the federal agency when it discovers that the university or any of its subcontractors utilize such covered telecommunications equipment or services. These reports must be made to the federal agency within one business day.
Annual Compliance Certification
Contractors may certify annually to the federal government whether or not they are utilizing covered telecommunications equipment or services. The annual certification allows contractors to avoid making representations on an offer-by-offer basis as would be otherwise be required by federal regulation.
