Federal Contractors Must Comply | OutSolve Blog

Subsection 889 applies to all contractors and other award types, not just FAR-based contracts

On August 13, 2018 President Trump signed the John S. McCain National Defense Authorization Act of FY 2019 (NDAA).  Section 889 of the NDAA has the following two key subsections.

• Effective August 13, 2019, subsection A prohibits the federal government from procuring, extending or renewing a contract to “procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as a critical technology as a part of any system” using Chinese technology produced by Hauwei Technologies, ZTE Corporation, Hytera Communications Corporation, Hikvision Digital Technology Company or Dahua Technology Company and their subsidiaries.
• Effective August 13, 2020, subsection A prohibits the federal government from contracting with an entity that uses products or services that incorporates or uses covered technology, whether or not the products or services are used in the context of the federal contracts.

Covered government contractors must: (1) represent, prospectively, whether or not they will provide covered equipment or services as part of their service offering and, if so, to furnish additional detail about the covered equipment or services, and (2) report within one business day any covered equipment or services discovered during the course of the contract performance.

Federal contractors can request a one-time waiver from the executive agency if it “provides a compelling justification for the additional time to implement the requirements” and “submits a full and complete laydown of the presences of covered telecommunications or video surveillance equipment or services in the entity’s supply chain and a phase-out plan to eliminate such covered telecommunications or video surveillance equipment or services from the entity’s systems.”

GSA Class Deviation CD-2019-01 FAQs