Section 889 - What Federal Contractors Need To Know
Note: AvidCard represents that it WILL NOT provide covered telecommunications equipment or services to the government, nor does it use covered telecommunications equipment or services.
At A Glance
Sections 889(a)(1)(A) & 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232) prohibits the head of an executive agency from procuring or obtaining, entering, 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 critical technology as part of any system. Often times before making a purchase, a buyer will reach out to their supplier with Section 889 for them to sign that they do not provide teleccomunications equipment or services to the government, and that they do not use covered telecommunicatons equipment or services. For more details and information, you can visit Congress.gov beginning on page 283.
The Big Picture
Section 889 was created to protect National Security by limiting the government’s access to certain equipment or services. For Federal contractors, this could seriously impact their business with the Government, so it is important they know specifically what Section 889 is referring to. Section 889 is concerned with “covered” equipment or services that come from certain companies with known ties to the People’s Republic of China. Specifically, it is prohibiting the Federal Government from 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.” This was put in place to counter against cyber-attacks and protect intellectual property to limit risk for the U.S. Government.
Covered telecommunications equipment and services is defined by:
1. Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).
2. 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).
3. Telecommunications or video surveillance services provided by such entities or using such equipment.
4. Telecommunications or video surveillance equipment or services produced or provided by an entity reasonably believed to be an entity owned, controlled, or connected to, the government of a covered foreign country.