National Defense Authorization Act - Changes Effective August 13, 2020

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National Defense Authorization Act

BACKGROUND:  On August 13, 2018, the President signed the FY 2019 National Defense Authorization Act (NDAA).  Section 889(b) prohibits Federal agencies, after August 13, 2020, from obligating or expending financial assistance to obtain certain telecommunications and video surveillance services and equipment from specific producers.

Interim Rule Issued by DoD, GSA, and NASA

Interim FAR Rule – Added Section 889 Parts A and B to the FAR (FAR 4.2102)

Section 889 Part A

  • Effective August 13, 2019, the Government may not obtain (through a contract or other instrument) certain telecommunications equipment or services produced by the following companies or their subsidiaries and affiliates:
  • Huawei Technologies Company
  • ZTE Corporation
  • Hytera Communications Corporation
  • Hangzhou Hikvision Digital Technology Company
  • Dahua Technology Company

Section 889 Part B

  • Effective August 13, 2020, the Government may not contract with an entity that uses telecommunications equipment or services, as a substantial or essential component of any system, or as critical technology as part of any system, produced by any of the Chinese companies listed above in Section 889 Part A
  • Use is “regardless of whether that use is in performance of a Federal contract”
  • Section 889 Part B applies to every sector: no matter what your company makes or sells, come August 13, 2020, all systems your company uses must be checked for prohibited telecommunications equipment and services

Public Transportation is researching what this specifically means for our federal fund recipients in terms of technology or other purchases.  You are encouraged, if you have questions, to register for the upcoming FTA webinar scheduled for September 10, 2020 at 1:00 PM Eastern Time.

Webinar registration link:

Section 889 of the FY 2019 National Defense Authorization Act (NDAA) Webinar Registration