FAR 4.2102—Prohibition.
Plain-English Summary
FAR 4.2102 establishes the government-wide prohibition on buying from, or contracting with, entities that use covered telecommunications equipment or services in certain ways. It covers two separate prohibition dates: first, agencies may not procure or obtain equipment, systems, or services that use covered telecommunications equipment or services as a substantial or essential component or as critical technology in a system; second, agencies may not enter into, extend, or renew a contract with an entity that uses such equipment, systems, or services anywhere in its operations, even if the use is not in performance of the federal contract. The section also identifies two narrow exceptions: certain third-party connectivity services such as backhaul, roaming, or interconnection arrangements, and telecommunications equipment that cannot route, redirect, or inspect user data traffic. In addition, it ties the prohibition to contracting officer actions, including option exercises and other renewals, and explains that the relevant prohibitions are recorded in SAM, including special recording by DoD for certain entities identified under the definition of covered telecommunications equipment or services. In practice, this section is a key supply-chain and responsibility-screening rule: it requires agencies and contracting officers to avoid prohibited procurements and prohibited contractor relationships, and it requires contractors to understand that the restriction can apply based on their broader use of covered equipment or services, not just the specific contract being performed.
Key Rules
Two separate prohibition dates
The rule creates two distinct restrictions: one effective August 13, 2019 for procuring or obtaining covered items, and another effective August 13, 2020 for contracting with entities that use covered telecommunications equipment or services. Contracting officers must apply the correct prohibition based on the type of transaction.
Covered use in systems
Agencies may not buy equipment, systems, or services that use covered telecommunications equipment or services as a substantial or essential component, or as critical technology, unless an exception or waiver applies. The focus is on the presence of covered technology within the system, not just the label of the product or service.
Entity-wide contracting ban
Agencies may not enter into, extend, or renew a contract with an entity that uses covered telecommunications equipment or services in any system, even if that use is unrelated to the federal work. This makes the rule broader than a contract-performance-only restriction.
Limited exceptions
The prohibition does not apply to certain third-party connectivity services, such as backhaul, roaming, or interconnection arrangements, or to telecommunications equipment that cannot route, redirect, or inspect user data traffic. These exceptions are narrow and must fit the regulatory language.
Contract extensions count
Extending or renewing a contract includes actions such as exercising an option. Contracting officers must treat these actions as covered by the prohibition and cannot use them to continue a prohibited relationship.
SAM recording requirement
The prohibitions tied to the relevant covered entities are recorded in SAM, including entries for entities identified in the definition of covered telecommunications equipment or services and, for certain categories, by DoD. This supports screening and award decisions under the responsibility rules in FAR 9.404.
Responsibilities
Contracting Officers
Must not procure or obtain prohibited equipment, systems, or services, and must not enter into, extend, or renew contracts with prohibited entities unless an exception or waiver applies. They must also treat option exercises and similar renewals as covered actions and check SAM-related prohibitions before award or extension.
Agencies
Must ensure acquisitions comply with the prohibition on covered telecommunications equipment or services and avoid doing business with entities that use such equipment or services in a prohibited way. Agencies must rely on the exceptions and waivers only when they clearly apply.
Contractors
Must understand that their broader use of covered telecommunications equipment or services can affect eligibility for federal contracts, even if the use is outside contract performance. Contractors should assess their supply chain and internal systems to avoid triggering the prohibition.
Department of Defense
Must record in SAM the prohibitions associated with entities identified under paragraph (4) of the definition of covered telecommunications equipment or services, including known subsidiaries or affiliates.
System for Award Management (SAM) administrators / acquisition personnel
Must maintain and consult the SAM records that identify prohibited entities and related subsidiaries or affiliates so contracting officials can screen awards, extensions, and renewals appropriately.
Practical Implications
This section is a stop-sign rule: if a vendor or its systems fall within the prohibition, the agency generally cannot award, extend, or renew the contract unless an exception or waiver applies.
Contracting officers need to screen not only the offered product or service, but also the contractor’s broader use of covered telecommunications equipment or services, because the second prohibition is entity-based.
A common pitfall is assuming the restriction only matters if the covered equipment is used directly on the federal contract; the rule expressly says it applies regardless of whether the use is in contract performance.
Another frequent issue is overlooking option exercises or other renewals, which count as extending or renewing a contract and can be prohibited just like a new award.
The exceptions are narrow and fact-specific, so parties should not assume that any telecom-related service qualifies; the equipment or service must fit the exact exception language or be covered by a waiver.
Official Regulatory Text
(a) Prohibited equipment, systems, or services . (1) On or after August 13, 2019, agencies are prohibited from procuring or obtaining, or extending or renewing 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 at paragraph (b) of this section applies or the covered telecommunications equipment or services are covered by a waiver described in 4.2104 . (2) On or after August 13, 2020, agencies are prohibited from entering into a contract, or extending or renewing a contract, with an entity that uses 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 at paragraph (b) of this section applies or the covered telecommunications equipment or services are covered by a waiver described in 4.2104 . This prohibition applies to the use of covered telecommunications equipment or services, regardless of whether that use is in performance of work under a Federal contract. (b) Exceptions . This subpart does not prohibit agencies from procuring or contractors from providing- (1) A service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or (2) Telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user data or packets that such equipment transmits or otherwise handles. (c) Contracting Officers . Unless an exception at paragraph (b) of this section applies or the covered telecommunications equipment or service is covered by a waiver described in 4.2104 , Contracting Officers shall not— (1) Procure or obtain, or extend or renew a contract ( e.g. , exercise an option) 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; or (2) Enter into a contract, or extend or renew a contract, with an entity that uses 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. (d) Recording prohibitions in the System for Award Management (SAM). (1) Prohibitions on purchases of products or services produced or provided by entities identified in paragraphs (1) and (2) of the definition of "covered telecommunications equipment or services" (including known subsidiaries or affiliates) at 4.2101 will be recorded in SAM (see 9.404 ). (2) Prohibitions on purchases of products or services produced or provided by entities identified pursuant to paragraph (4) of the definition of "covered telecommunications equipment or services" (including known subsidiaries or affiliates) at 4.2101 are recorded by the Department of Defense in SAM (see 9.404 ).