Overview:

Section 889 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019 Section (a)(1)(B) and Section (b)(1) of the law, went into effect on August 13, 2020. 

Acquisition:
Effective August 13, 2020, FAR 4.2102(a)(2) implemented the statutory prohibition 889(a)(1)(B) for agencies to “enter into a contract to procure or obtain, or extend or renew a contract to procure or obtain 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 or waiver as described in FAR applies.

Assistance:
Effective August 13, 2020, 2 CFR 200.216 for U.S. organizations and the mandatory standard provision “Prohibition on Certain Telecommunication and Video Surveillance Services or Equipment (AUGUST 2020) for non-U.S. organizations implemented the statutory prohibition 889(b)(1) that prohibits the use of award funds, including direct and indirect costs, cost-share and program income, to procure covered telecommunication and video surveillance services or equipment.  

Partner Resources:
Frequently Asked Questions (FAQs) (Updated October 23, 2020)

Contractors/Recipients must carefully review the FAR requirements for acquisition and 2 CFR 200 for Assistance, and contact their cognizant CO/AO for questions specific to the solicitation/award; all other inquiries may be submitted to USAID’s Industry Liaison. 

Acquisition Resources: 

• Interim Rule Federal Acquisition Regulation: Prohibition on Contracting With Entities Using Certain Telecommunications and Video Surveillance Services or Equipment

• ADS 302: USAID Direct Contracting

• ADS 302mbp: Waivers for Covered Telecommunications and Video Surveillance Services or Equipment under FAR 4.2104

• Acquisition Implementing Partner Notice Portal: 

  • Issued 8/11/2020: Bilateral Modification #7: For IDIQ Awards Only. 
    Effective August 13, 2020, incorporate FAR clause, 52.204-25 - Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment (Aug 2020) into existing IDIQ award(s) for any future orders. The above FAR clause must be incorporated into the IDIQ award(s) prior to issuing and accepting any new orders and extensions or the exercising of options of orders, on or after August 13, 2020.  

  • Issued 8/14/2020: Bilateral Modification #8: For BPA Awards Only. 
    Effective August 13, 2020, incorporate FAR clause, 52.204-25 - Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment (Aug 2020) into existing BPA award(s) for any future orders. The above FAR clause must be incorporated into the BPA award(s) prior to issuing and accepting any new orders and extensions or the exercising of options of orders, on or after August 13, 2020

  • Issued 8/21/2020: Notice #16:  FAR Part 4.2101 Prohibition On Covered Telecommunications And Video Surveillance Services and Equipment 

Assistance Resources

• Revisions to 2 CFR implementing the Section 889 Prohibitions

• ADS 303 Grants and Cooperative Agreements to Non-Governmental Organizations

• ADS 303mab, Standard Provisions for Non-U.S. Nongovernmental Organizations

• ADS 303maa, Standard Provisions for U.S. Nongovernmental Organization

• Assistance Implementing Partner Notice Portal: 

  • Issued 8/21/2020: Notice # 10: Assistance Prohibition On Covered Telecommunications And Video Surveillance Services and Equipment