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Section 889 of the National Defense Authorization Act (NDAA) for Fiscal Year 2019 prohibits the Federal Government from procuring, and U.S. Government contractors from using, certain "covered telecommunication equipment or services" produced by Huawei, ZTE, Hytera, Hikvision, and Dahua and their subsidiaries as a "substantial or essential component of any system, or as critical technology as part of any system." The law also prohibits using Federal grant funds for such covered technology.
This message is to inform USAID partners that the Director of National Intelligence has provided us with a limited waiver for foreign assistance based on Section 889(d)(2) of the NDAA for FY 2019, effective immediately through September 30, 2022. USAID is taking action to revise our policies and procedures expeditiously to implement this waiver.
Acquisition:
Offerors and Contractors are still required to submit the FAR representation at FAR 52.204-24 and/or 52.204-26 along with the disclosure information, as required. USAID will make a determination as to whether to apply this waiver to the particular award.
The waiver applies to contracts for work to advance our foreign-assistance mission overseas (even if the Agency awards the contract in the United States) and allows contractors additional time to meet the requirements of Section 889 of the NDAA for FY 2019. After September 30, 2022, the expiration date of this waiver, USAID cannot legally continue with existing contracts or award new contracts with entities using covered technology.
The waiver does not apply to contracts for goods used or services performed entirely in the United States (such as Institutional Support Contracts and many purchase-card transactions for supplies or services used in the United States).
Assistance:
The waiver also applies to assistance awards (grants and cooperative agreements). Agreement Officers (AOs) will insert the revised special award requirement into awards made between November 19, 2020, and September 30, 2022. Awards made prior to November 19, 2020, will not be amended to incorporate the revised special award requirement.
USAID agrees with the intent of Section 889 of the NDAA for FY 2019, which is meant to minimize cybersecurity threats, and we have instituted policies and procedures to comply with the law's requirements. USAID continues to take steps to mitigate risk in our information-technology supply-chain, fulfill our responsibilities under Section 889, and minimize disruptions to the essential supplies and services required to accomplish our mandate. USAID encourages partners to review and consider taking the steps outlined in the FAR rule, "Contractor Actions Needed for Compliance."
If you have any questions, please consult with your cognizant Contracting Officer or Agreement Officer.
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