Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment
Contractors must not provide or use certain Chinese telecommunications or video surveillance equipment/services in federal contracts and must promptly report any identified use, ensuring compliance throughout their supply chain.
Overview
FAR 52.204-25 prohibits federal contractors from providing or using certain telecommunications and video surveillance equipment or services from specified Chinese companies (such as Huawei, ZTE, Hytera, Hikvision, and Dahua) in the performance of government contracts. The rule implements Section 889 of the FY19 NDAA and aims to protect U.S. government systems from security threats posed by these entities. The prohibition applies both to equipment/services provided to the government and to the contractor’s own use of such equipment/services, regardless of whether that use is in direct performance of a federal contract. There are limited exceptions, and contractors must report any identified use of covered equipment/services during contract performance.
Key Rules
- Prohibition on Covered Equipment/Services
- Contractors cannot provide or use covered telecommunications or video surveillance equipment/services as a substantial or essential component or as critical technology in any system, unless an exception or waiver applies.
- Reporting Requirement
- Contractors must report to the Contracting Officer (or DoD’s DIBNet for DoD contracts) within one business day if covered equipment/services are identified, and provide follow-up mitigation information within 10 business days.
- Subcontract Flowdown
- Contractors must include the substance of this clause in all subcontracts, including those for commercial products/services.
- Exceptions
- Certain third-party connections (e.g., backhaul, roaming, interconnection) and equipment that cannot route or access user data are excepted.
Responsibilities
- Contracting Officers: Ensure inclusion of the clause, monitor compliance, and receive reports.
- Contractors: Conduct reasonable inquiry, avoid prohibited equipment/services, report any findings, and flow down the clause to all subcontracts.
- Agencies: Oversee compliance, process waivers, and maintain reporting channels (e.g., DIBNet for DoD).
Practical Implications
- This clause is critical for supply chain security and compliance. Contractors must thoroughly vet their supply chains and internal systems for prohibited equipment/services, maintain robust reporting processes, and ensure all subcontractors are aware of and comply with these requirements. Failure to comply can result in contract termination, suspension, or debarment.