Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment
FAR Subpart 4.21 strictly prohibits federal contractors from providing or using certain Chinese telecommunications and video surveillance equipment or services, requiring robust due diligence and mandatory reporting to ensure compliance.
Overview
FAR Subpart 4.21 establishes a government-wide prohibition on contracting for certain telecommunications and video surveillance services or equipment from specific Chinese companies and their affiliates, as mandated by Section 889 of the FY 2019 National Defense Authorization Act (NDAA). This subpart defines key terms, outlines the scope of the prohibition, details required procedures for compliance, provides for limited waivers, and prescribes mandatory solicitation provisions and contract clauses. The regulation applies to all federal contracts, including those for commercial items, and requires both prime contractors and subcontractors to ensure that prohibited equipment or services are not used in the performance of government contracts.
Key Rules
- Scope and Definitions
- Applies to all federal contracts and defines covered telecommunications equipment, services, and restricted entities.
- Prohibition
- Prohibits agencies from procuring or obtaining, or extending or renewing a contract to procure or obtain, covered telecommunications equipment or services from designated entities (e.g., Huawei, ZTE).
- Procedures
- Requires contractors to conduct reasonable inquiry and represent compliance; mandates reporting if prohibited equipment or services are identified during contract performance.
- Waivers
- Allows for temporary waivers under specific circumstances, subject to senior agency official approval and Congressional notification.
- Solicitation Provisions and Contract Clause
- Mandates inclusion of specific FAR clauses in solicitations and contracts to ensure compliance and flow-down to subcontractors.
Responsibilities
- Contracting Officers: Must ensure inclusion of required clauses, review contractor representations, and process waiver requests.
- Contractors: Must conduct due diligence, certify compliance, report discoveries, and flow down requirements to subcontractors.
- Agencies: Oversee compliance, process waivers, and notify Congress as required.
Practical Implications
- This subpart exists to protect national security by restricting the use of certain foreign telecommunications and surveillance technology in federal contracts.
- Contractors must implement robust supply chain due diligence and reporting processes to avoid inadvertent use of prohibited equipment or services.
- Noncompliance can result in contract termination, suspension, or debarment, making awareness and adherence critical.