NDAA Section 899

What is NDAA Section 899?

Defense policy and funding priorities. Section 889 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year 2019 restricts federal funds from being used to purchase telecommunications and video surveillance equipment from specific Chinese manufacturers, including Hytera, Huawei, Hikvision, ZTE, and Dahua, along with their subsidiaries. This ban also applies to contract renewals or extensions. These provisions aim to protect national security by reducing the risks associated with using equipment from these Chinese companies.

Here are the key points of Section 889:

1. Prohibition on Procurement and Use

Federal agencies are prohibited from procuring or obtaining any equipment, system, or service that uses “covered telecommunications equipment or services” as a substantial or essential component, or as critical technology, as part of any system. This includes extending or renewing contracts for such equipment, systems, or services.

2. Covered Telecommunications Equipment or Services

The term “covered telecommunications equipment or services” includes:

• Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).

• Video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities), if such equipment is used for public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes.

3. Waivers

The Director of National Intelligence may issue a waiver for certain procurements if it is determined to be in the national security interest of the United States. Section 889 also prohibits the use of federal loans or grant funds to procure or obtain this equipment or services.

How does NDAA compliance affect security equipment procurement?

The NDAA (National Defense Authorization Act) compliance significantly impacts the procurement of security equipment, particularly in contexts involving federal government contracts and projects. Here are the key impacts of NDAA compliance on the procurement of security equipment:

1. Supplier Selection

• Prohibited Procurement: Section 889 of the NDAA explicitly prohibits the purchase of telecommunications and video surveillance equipment from Huawei, ZTE, Hytera, Hikvision, Dahua, and their subsidiaries and affiliates. This necessitates that procurement departments avoid these manufacturers and their products.

• Supplier Screening: Procurement officers need to reassess and screen existing suppliers to ensure that the equipment they provide does not contain components from restricted manufacturers. This may require more thorough supplier reviews and background checks.

2. Product Compliance

• Compliance Verification: During the procurement process, it is crucial to verify whether the selected equipment meets NDAA compliance requirements. This includes checking the origin of the equipment, the manufacturer, and relationships with subsidiaries and affiliates.

• Compliance Statements: Procurement departments may require suppliers to provide compliance statements or certifications confirming that their products do not include any parts from restricted companies.

3. Contract Terms

• Contract Updates: When entering into or renewing contracts with suppliers, NDAA compliance terms must be included. These terms should clearly stipulate that suppliers must adhere to the requirements of Section 889 of the NDAA, with contract termination as a potential consequence of non-compliance.

• Audit Rights: Contracts may include audit rights allowing the procurement entity to periodically inspect the supplier's compliance to ensure adherence to NDAA regulations.

In summary, NDAA compliance imposes higher requirements on the procurement of security equipment, necessitating comprehensive adjustments in supplier selection, compliance verification of products, contract management, risk management, and cost control. This ensures compliance, mitigates legal and financial risks, and enhances a company's competitiveness and reputation in the market.

Make sure your entire system is NADD-compliant

If you have received federal funds, it is essential to ensure your entire system complies with the NDAA (National Defense Authorization Act). Please correctly assess whether federal funds have been used to purchase any video security equipment or services provided by the companies as mentioned earlier, including video surveillance cameras, recorders, video surveillance servers, video surveillance data storage devices, and other related items.

Firstly, familiarize yourself with the specific NDAA provisions applicable to your system, pay special attention to Section 889. Secondly, evaluate all suppliers providing components or equipment for your system. Ensure these companies are not on the restricted list (such as Huawei, ZTE, Hytera, Hikvision, Dahua, and their subsidiaries).

Next, inspect each component and piece of equipment to ensure they do not include any parts from the restricted manufacturers listed in Section 889 of the NDAA. Obtain compliance declarations or certifications from suppliers if necessary. Incorporate NDAA compliance requirements into contracts with suppliers. Include terms requiring adherence to Section 889 of the NDAA and outline the consequences of non-compliance, such as contract termination.

Once your assessment is complete, replacing any non-compliant equipment or services should be done by designated manufacturers. For example, suppose your system includes compatible VMS and prohibited video surveillance cameras. In that case, you can replace the banned products with compliant ones to avoid a complete system overhaul and help reduce replacement costs.

Additionally, establish procedures for regular audits and monitoring of supplier compliance. This may include conducting supplier audits or requiring them to submit regular compliance reports.

By systematically addressing these steps, you can help ensure your entire system complies with NDAA requirements, thereby reducing the legal and financial risks associated with non-compliance.

Conclusion

In short, NDAA compliance influences various facets of the technology and security markets, from market dynamics and innovation to business strategy and risk management. Companies must adapt to these changes to maintain competitiveness and secure federal contracts, ultimately shaping the landscape of technology and security industries.

FS is a trusted brand committed to providing high-quality security surveillance products and solutions that meet the stringent requirements of the NDAA. Our comprehensive range of security products is fully compliant with NDAA Section 889, ensuring that all equipment, from video surveillance cameras to data storage devices, adheres to federal standards. By choosing FS, you can be confident in the security and reliability of your systems, free from the risks associated with non-compliance. Trust FS for your security needs, and rest assured that you are investing in safe, compliant, and dependable technology.