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.
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
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.
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.
The Fiscal Year 2019 National Defense Authorization Act included a prohibition on federal agencies and federal grant recipients from procuring certain Chinese telecommunications and video surveillance equipment. 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.
The prohibited telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities). Additionally, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities) that is used for the purpose of public safety, security of 16 government facilities, physical security surveillance of critical infrastructure, and other national security purposes is covered equipment under Section 889.
