FAR Case 2018-017 Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment

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On August 12, 2019, the Federal Acquisition Regulation (FAR) Council issued an interim rule prohibiting the procurement of certain telecommunication and video surveillance products and services. Companies providing telecommunications and video surveillance products and services to the government, directly or indirectly, will have to complete both a representation and a certification as to the inclusion of products or services from Huwaei or ZTE and their subsidiaries.

The requirement for representations and certifications takes effect August 13, 2019, and will apply to all telecommunications, video surveillance products and services, including commercial off-the-shelf (COTS) items, commercial products and services, as well as products and services underneath the Simplified Acquisition Threshold ($250,000).

The telecommunications equipment or services covered include the following:

  • Telecommunications equipment produced by Huawei Technologies Company, ZTE Corporation or any of their subsidiaries;
  • Video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, Dahua Technology Company or any of their subsidiaries or affiliates;
  • Telecommunications or video surveillance services provided by such entities or using such equipment; or,
  • Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the People’s Republic of China.

This rule requires submission of a representation with each offer, which will require offerors to identify any covered telecommunications equipment or services that will be provided to the government.

This rule prohibits as part of all contracts issued on or after August 13, 2019, the purchase of 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, unless an exception applies or a waiver is granted. The interim rule applies to task or delivery orders issued on after August 13, 2019.