Understanding Section 889 and Prohibited Equipment

Section 889 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year 2019 prohibits federal agencies from procuring certain telecommunications equipment and services. Understanding these requirements is critical for any company selling IT products to the government.

What is Section 889?

Section 889 was enacted to address national security concerns regarding telecommunications equipment from specific Chinese companies. The law was implemented in two phases:

Part A (August 2019): Prohibits agencies from procuring covered equipment
Part B (August 2020): Prohibits agencies from contracting with entities that use covered equipment

Covered Equipment and Companies

Section 889 specifically prohibits telecommunications or video surveillance equipment from:

Huawei Technologies Company
ZTE Corporation
Hytera Communications Corporation
Hangzhou Hikvision Digital Technology Company
Dahua Technology Company
Subsidiaries or affiliates of the above companies
Any entity that the Secretary of Defense determines poses a national security risk

Important Distinction

The prohibition covers telecommunications and video surveillance equipment and services. Other products from these companies (consumer electronics, etc.) may not be covered, but verification is essential.

Part A: Procurement Ban

Under Part A, federal agencies cannot procure:

Covered telecommunications equipment or services
Equipment that uses covered equipment as a substantial or essential component
Services that use covered equipment as a substantial or essential component

Part B: Use Ban

Part B extends the prohibition to contractors. Agencies cannot enter contracts with entities that:

Use covered equipment or services
Use covered equipment as a substantial or essential component of any system

This means contractors must certify they do not use prohibited equipment anywhere in their organization - not just in the delivery of federal contracts.

"Section 889 compliance requires due diligence throughout your supply chain. Every component of every product must be verified to ensure prohibited equipment is not present."

FAR Clause Implementation

The Federal Acquisition Regulation (FAR) implements Section 889 through specific clauses:

FAR 52.204-24: Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment
FAR 52.204-25: Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment
FAR 52.204-26: Covered Telecommunications Equipment or Services - Representation

Compliance Requirements for Resellers

IT resellers must take several steps to ensure compliance:

1. Supply Chain Due Diligence

Verify the origin of all products
Check component manufacturers
Obtain compliance certifications from suppliers
Document your verification process

2. Product Vetting

Review product specifications for prohibited components
Check manufacturer compliance statements
Verify firmware and software sources

3. Representation Requirements

Complete required representations in SAM.gov
Update representations when circumstances change
Maintain documentation supporting representations

Consequences of Non-Compliance

Violations of Section 889 can result in:

Contract termination
False Claims Act liability
Suspension or debarment
Civil and criminal penalties

How IAT Solutions Ensures Compliance

At IAT Solutions, we take Section 889 compliance seriously. We work exclusively with authorized distributors and manufacturers who provide documentation certifying their products do not contain prohibited equipment. Our procurement process includes verification steps to ensure every product meets Section 889 requirements before quoting to federal agencies.