Section 889 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year 2019 has two major parts. Effective August 13th, 2019, Part A stipulates that:
“The head of an executive agency may not procure or obtain or extend or renew 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 critical technology as part of any system.”
Covered Telecommunications equipment is described as:
“Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities)” or “…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).”
Basically, the Federal Government can no longer use Huawei, ZTE, Hytera, Hangzhou Hikvision, or Dahua products or services.
This has led to Government agencies replacing covered telecommunications equipment and video surveillance equipment with products from countries other than China. We will cover the Trade Agreements Act and Buy American Act relating to this in another blog post.
Meanwhile, Part B of Section 889 became effective August 13th, 2020. Part B states:
“The head of an executive agency may not enter into a contract (or extend or renew a contract) with an entity that uses 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.”
This expands upon Part A in that not only can Agencies not buy equipment from the banned companies from China, but the Agencies also cannot buy equipment from companies that use the banned equipment directly or in their supply chain. This is a high bar for many small businesses. A recent GSA webinar outlined the standard as making a reasonably inquiry into your supply chain to ensure compliance including within your company. This would include popular webcams, CCTV cameras, and other telecommunications equipment.
ICG sells telecommunications equipment from compliant companies and manufacturers. This includes Axis cameras which publish a list of their TAA Compliant cameras. We are also able to procure compliant telecommunications equipment, from jacks and cabling to racks and patch panels.
If you would like more information on our product line please send us an email or give us a call!
The information provided is for informational purposes only. It is not legal advice. Contact your attorney if you require legal advice.
Click here to see the entire bill at Congress’ website.