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National Defense Authorization Act (NDAA) Section 889 – How it applies to Caltech
May 14, 2021

Caltech is subject to many new regulatory requirements each year. This particular regulation, NDAA Section 889, impacts both the administrative and research community regarding the purchase and use of specific telecommunications and video surveillance equipment.

Prohibited Companies and Affiliates List under NDAA Section 889:

NDAA Section 889 of the John S. McCain National Defense Authorization Act prohibits government awardees from providing the federal government with telecommunications or video surveillance equipment, systems, or services (or an essential component thereof) produced or provided by five Chinese companies and their subsidiaries and affiliates.  The five prohibited Chinese companies are: 

  1. Huawei Technologies Company
  2. ZTE Corporation
  3. Hytera Communications Corporation
  4. Hangzhou Hikvision Digital Technology Company
  5. Dahua Technology Company 

Separately, NDAA Section 889 prohibits government contractors from using these prohibited items or services, regardless of whether they are used in the performance of work under a federal contract. 

In addition to these five Chinese companies (and their subsidiaries and affiliates), Section 889 also prohibits government contractors from providing or using items or services from entities that the Secretary of Defense designates as entities "owned or controlled by, or otherwise connected to, the government of a covered foreign country." All prohibited companies under Section 889 can be found on the updated list here. (Note: Caltech credentials are required for access)

How does this apply to your transaction?

As a federal awardee, Caltech is subject to Section 889's prohibitions. Therefore, if you purchase or use goods or services on behalf of Caltech, you must not purchase or use any equipment, system, service, or component thereof produced or provided by these prohibited companies, their subsidiaries, or their affiliates.

Section 889 provides narrow exceptions. If you believe that you require an exemption from Section 889's prohibitions, please consult with the Director of Procurement Services or the Associate Director of Purchasing Services prior to purchasing or using the prohibited item or service. For additional information, visit Caltech's NDAA Section 889 webpage.

What should you do if you identify a prohibited service or transaction?

If you identify any prohibited equipment or services at Caltech, please immediately notify Research Administration for further consultation.

Research Administration has worked closely with Procurement Services and the Office of Export Compliance to provide Purchasing Agents, Contracting Officers, Campus SOS Buyers, and P-Card Holders with information and training on NDAA Section 889.

Where to go for help?

For specific questions or contact information, please refer to the following: Procurement Services questions: https://procurement.caltech.edu/; Caltech Export Compliance Office for export issues: export@caltech.edu; or Research Administration for award-specific questions: david.mayo@caltech.edu

For more information, visit Caltech's NDAA Section 889 webpage.