National Defense Authorization Act Section 889 (NDAA 889)

Section 889 of the John S. McCain National Defense Authorization Act prohibits government contractors from providing the federal government with telecommunications or video surveillance equipment, systems, or services (or an essential component thereof) produced or provided by five Chinese companies and their subsidiaries and affiliates. Separately, Section 889 prohibits government contractors from using these prohibited items or services, regardless of whether they are used in the performance of work under a federal contract. The five prohibited Chinese companies are:

1. Huawei Technologies Company
2. ZTE Corporation
3. Hytera Communications Corporation
4. Hangzhou Hikvision Digital Technology Company
5. Dahua Technology Company

In addition to these five Chinese companies (and their subsidiaries and affiliates), Section 889 also applies to entities that the Secretary of Defense designates as entities "owned or controlled by, or otherwise connected to, the government of a covered foreign country." All the prohibited companies can be found on the updated list here.

Contacts:

Procurement Services questions: https://procurement.caltech.edu/

Caltech Export Compliance Office for export issues: export@caltech.edu

Research Administration for award-specific questions: david.mayo@caltech.edu

Resources:


Federal Register Notices

• 84 FR 22961 https://www.bis.doc.gov/index.php/documents/regulations-docs/2394-huawei-and-affiliates-entity-list-rule/file
• 84 FR 43487 https://www.bis.doc.gov/index.php/documents/regulations-docs/federal-register-notices/federal-register-2019/2436-temporary-general-license-rule-on-public-display-and-effective-8-19-19-and-to-publish-in-fr-on-8-21-19/file
• 85 FR 51596 https://www.bis.doc.gov/index.php/documents/regulations-docs/federal-register-notices/federal-register-2020/2593-85-fr-51596/file
• 85 FR 42665 https://www.federalregister.gov/documents/2020/07/14/2020-15293/federal-acquisition-regulation-prohibition-on-contracting-with-entities-using-certain
  

Federal Award Terms

• FAR 52.204-24 https://www.acquisition.gov/far/52.204-24
• FAR 52.204-25 https://www.acquisition.gov/far/52.204-25
• FAR 52.204-26 https://www.acquisition.gov/far/52.204-26
  

Agency-Specific Guidance

• NASA Memo "Preparing NASA Contractors for Section889(a)(1)(B) of National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019, Prohibition on Contracting with Entities Using Certain Telecommunications and Video Surveillance Services or Equipment / Assessing Section 889 Impacts"
• NASA Brochure "Section 889 – Understanding the Basics of Section 889 and How NASA is responding"
• National Institutes of Health "https://grants.nih.gov/grants/guide/notice-files/NOT-OD-21-041.html"