resources · referenceSection 889 covered telecommunications equipment
What Section 889 of the FY2019 NDAA bars, the five named manufacturers it covers, the procurement-versus-use distinction between its two parts, and the waiver paths that remain open.
Section 889 of the FY2019 NDAA (the John S. McCain National Defense Authorization Act, Pub. L. 115-232) bars the federal government and its contractors from procuring or using telecommunications and video surveillance equipment from five named entities: Huawei Technologies Company, ZTE Corporation, Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, and Dahua Technology Company — plus their subsidiaries and affiliates. Two separate prohibitions apply, on two different effective dates, implemented at FAR 52.204-25.
Part A: the procurement prohibition
Effective August 13, 2019, Section 889(a)(1)(A) prohibits federal agencies from procuring or obtaining "any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system."
Part B: the use prohibition
Effective August 13, 2020, Section 889(a)(1)(B) reaches further: an agency may not enter into, extend, or renew a contract with an entity that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology, anywhere in that entity's operations — not only in the specific system or deliverable sold to the government.
The five covered manufacturers
The statute doesn't treat all five entities identically. Huawei and ZTE are covered without qualification for telecommunications equipment. Hytera, Hikvision, and Dahua are covered specifically for video surveillance and telecommunications equipment "used for the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes" — a narrower, purpose-qualified test that doesn't automatically sweep in every use of those three manufacturers' equipment.
Definitions
- Covered telecommunications equipment or services
- Telecommunications equipment produced by Huawei or ZTE; video surveillance and telecommunications equipment produced by Hytera, Hikvision, or Dahua and used for the purposes above; and equipment or services produced or provided by an entity the government reasonably believes to be owned, controlled by, or connected to the government of a covered foreign country.
- Substantial or essential component
- Any component necessary for the proper function or performance of a piece of equipment, system, or service.
- Critical technology
- Defense articles on the U.S. Munitions List; Commerce Control List items controlled for national security or regional stability reasons; nuclear equipment and materials; select agents and toxins; and emerging technologies subject to controls under the Export Control Reform Act.
The representations: FAR 52.204-24, -25, -26
Three clauses carry Section 889 through a solicitation and into a contract. FAR 52.204-24 is the representation an offeror completes at the solicitation stage — after reasonable inquiry, it represents whether it does or does not provide covered telecommunications equipment or services, and separately whether it does or does not use them, with further disclosure (equipment producer, brand, model, and how the proposed use is permissible) required on an affirmative answer. FAR 52.204-25 is the contract clause that carries the prohibition itself, along with its definitions and two narrow exceptions: services that merely connect to a facility (such as backhaul or roaming) via covered equipment, and telecommunications equipment that cannot route or redirect user data or permit visibility into any user data. FAR 52.204-26 is a standalone does/does-not representation an offeror completes when 52.204-24 is not otherwise part of the solicitation.
Waiver posture
Two waiver paths exist in the statute, and only one is still open. The head of an executive agency could grant a one-time waiver under FAR 4.2104, but those windows have closed: no later than August 13, 2021 for the Part A prohibition, and no later than August 13, 2022 for Part B. The waiver route that remains standing today is the Director of National Intelligence, who may grant a waiver on a case-by-case basis when the Director determines doing so is in the national security interests of the United States — alongside a narrow emergency-waiver path when prior notice and consultation with the ODNI would severely jeopardize a mission-critical function.
Which companies are covered under Section 889?
Five, named directly or by category in the statute: Huawei Technologies Company and ZTE Corporation (covered without qualification, for telecommunications equipment), and Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, and Dahua Technology Company (covered for video surveillance and telecommunications equipment used for public safety, government facility security, physical security surveillance of critical infrastructure, or other national security purposes). Subsidiaries and affiliates of all five are covered the same way.
What's the difference between the Part A and Part B prohibitions?
Part A — Section 889(a)(1)(A), effective August 13, 2019 — bars a federal agency from procuring or obtaining equipment, systems, or services that use covered telecommunications equipment as a substantial or essential component, or as critical technology. Part B — Section 889(a)(1)(B), effective August 13, 2020 — goes further: an agency can't contract with an entity that uses covered telecommunications equipment anywhere in its business, whether or not that use touches the contract with the government at all.
Can a contractor still get a waiver?
The one-time agency waiver windows have closed — no later than August 13, 2021 for the Part A prohibition and August 13, 2022 for Part B, per FAR 4.2104. The standing route that remains is a waiver from the Director of National Intelligence, granted case-by-case when the Director determines it serves the national security interests of the United States, plus a narrow emergency-waiver path for mission-critical functions.
What do FAR 52.204-24, -25, and -26 each require?
52.204-24 is the solicitation-stage representation: an offeror states, after reasonable inquiry, whether it provides or uses covered telecommunications equipment or services, with further disclosure required if so. 52.204-25 is the contract clause carrying the prohibition itself, plus its definitions and narrow exceptions. 52.204-26 is a standalone representation an offeror completes (a does/does-not checkbox) when 52.204-24 isn't otherwise in the solicitation.
- FAR 52.204-25 — Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment →
- FAR 52.204-24 — Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment →
- FAR 52.204-26 — Covered Telecommunications Equipment or Services—Representation →
- FAR 4.2104 — Prohibition on contracting for certain telecommunications and video surveillance services or equipment: waivers →
- Section 889, John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232) →