FAR 52.204-25—Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment.
Plain-English Summary
FAR 52.204-25 implements the governmentwide prohibition on contracting for certain telecommunications and video surveillance services or equipment tied to Section 889 of the FY 2019 NDAA. This clause defines the key terms contractors and contracting officers need to apply the rule, including backhaul, covered foreign country, covered telecommunications equipment or services, critical technology, interconnection arrangements, reasonable inquiry, roaming, and substantial or essential component. It then states two separate prohibitions: the first bars agencies from procuring or obtaining equipment, systems, or services that use covered telecommunications equipment or services as a substantial or essential component or as critical technology; the second bars agencies from contracting with an entity that uses such covered equipment or services, even if the use is not in direct performance of the federal contract. The clause also points to exceptions and waivers, including waivers under FAR 4.2104 and the exceptions in paragraph (c), which are essential for determining whether a particular acquisition may proceed. In practice, this clause requires contractors to know what telecom and video surveillance products and services are in their supply chain and internal operations, and it requires contracting officers to screen offers, evaluate representations, and ensure compliance before award and during contract administration. The clause is especially significant because it reaches beyond the contractor’s direct contract performance and can affect corporate networks, leased services, and third-party arrangements.
Key Rules
Key terms control scope
The clause begins with detailed definitions that determine what is covered, including covered telecommunications equipment or services, critical technology, backhaul, roaming, interconnection arrangements, reasonable inquiry, and substantial or essential component. These definitions are not optional background; they are the legal test for deciding whether a product, service, or network arrangement is prohibited.
Section 889 part A prohibition
Under Section 889(a)(1)(A), 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 as part of any system. Contractors may not provide such items to the Government unless an exception applies or a waiver under FAR 4.2104 covers the item.
Section 889 part B prohibition
Under Section 889(a)(1)(B), agencies may not enter into, extend, or renew a contract with an entity that uses covered telecommunications equipment or services as a substantial or essential component, or as critical technology as part of any system. This prohibition applies even when the covered use is not part of the work being performed under the federal contract.
Covered foreign country focus
The clause defines covered foreign country as the People’s Republic of China, which is central to identifying entities and equipment that may trigger the prohibition. The definition of covered telecommunications equipment or services also includes entities owned, controlled by, or otherwise connected to the government of a covered foreign country when identified through the required interagency determination.
Reasonable inquiry standard
The clause uses a reasonable inquiry standard for identifying the producer or provider of covered telecommunications equipment or services. This means contractors must make a targeted, good-faith inquiry into information in their possession, but they are not required to conduct an internal or third-party audit just to satisfy the clause.
Exceptions and waivers matter
The prohibition is not absolute. Paragraph (c) provides exceptions, and FAR 4.2104 allows waivers in limited circumstances. Contractors and contracting officers must confirm whether an exception or waiver applies before treating a situation as compliant.
Applies beyond contract performance
The clause expressly states that the prohibition applies regardless of whether the covered use occurs in performance of work under a federal contract. This makes the rule broader than a typical performance-only restriction and requires review of the contractor’s broader business operations and network environment.
Responsibilities
Contracting Officer
Ensure the clause is included when required, evaluate whether the acquisition is affected by Section 889, and verify that any exception or waiver is documented before award, extension, or renewal. The contracting officer must also avoid procuring covered equipment or services and must consider the contractor’s broader use of covered items when making responsibility and award decisions.
Contractor
Perform a reasonable inquiry to identify whether covered telecommunications equipment or services are used by the company or in the items and services being offered. The contractor must not provide prohibited equipment, systems, or services to the Government, must disclose or address any covered use as required by the solicitation or contract, and must ensure compliance throughout performance and when seeking extensions or renewals.
Agency
Implement Section 889 screening and acquisition controls, ensure procurement actions do not result in prohibited purchases, and maintain waiver documentation where applicable. Agencies must also coordinate internally so that contracting, program, security, and IT personnel understand the prohibition and its effect on acquisitions and contract administration.
Subcontractors and Suppliers
Provide accurate information about the origin and use of telecommunications and video surveillance equipment and services in their offerings and supply chains. They must support the prime contractor’s reasonable inquiry and avoid supplying covered items where the contract or flowdown requirements prohibit them.
Practical Implications
This clause can disqualify a contractor even if the covered equipment is used in the contractor’s own corporate network and not on the federal contract itself, so companies need enterprise-wide visibility, not just project-level review.
A common pitfall is assuming that only Huawei, ZTE, Hikvision, Hytera, or Dahua are relevant; the clause also covers other entities identified through the Secretary of Defense determination process and any covered use as a substantial or essential component.
Contractors should document their reasonable inquiry carefully, including who was asked, what systems and suppliers were reviewed, and what information supported the conclusion, because the standard is inquiry-based rather than audit-based.
Contracting officers should not rely on informal assurances alone when the acquisition may implicate Section 889; they should confirm whether an exception or waiver applies and ensure the file supports the decision.
Because the rule reaches equipment, systems, services, backhaul, roaming, and interconnection arrangements, organizations should review telecom contracts, managed services, cloud-connected devices, security cameras, and network infrastructure together rather than in isolation.
Official Regulatory Text
As prescribed in 4.2105 (b) , insert the following clause: Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment (Nov 2021) (a) Definitions. As used in this clause— Backhaul means intermediate links between the core network, or backbone network, and the small subnetworks at the edge of the network ( e.g. , connecting cell phones/towers to the core telephone network). Backhaul can be wireless (e.g., microwave) or wired ( e.g. , fiber optic, coaxial cable, Ethernet). Covered foreign country means The People’s Republic of China. Covered telecommunications equipment or services means– (1) Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities); (2) For the purpose of public safety, security of Government facilities, physical security surveillance of critical infrastructure, and other national security purposes, 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); (3) Telecommunications or video surveillance services provided by such entities or using such equipment; or (4) Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country. Critical technology means– (1) Defense articles or defense services included on the United States Munitions List set forth in the International Traffic in Arms Regulations under subchapter M of chapter I of title 22, Code of Federal Regulations; (2) Items included on the Commerce Control List set forth in Supplement No. 1 to part 774 of the Export Administration Regulations under subchapter C of chapter VII of title 15, Code of Federal Regulations, and controlled- (i) Pursuant to multilateral regimes, including for reasons relating to national security, chemical and biological weapons proliferation, nuclear nonproliferation, or missile technology; or (ii) For reasons relating to regional stability or surreptitious listening; (3) Specially designed and prepared nuclear equipment, parts and components, materials, software, and technology covered by part 810 of title 10, Code of Federal Regulations (relating to assistance to foreign atomic energy activities); (4) Nuclear facilities, equipment, and material covered by part 110 of title 10, Code of Federal Regulations (relating to export and import of nuclear equipment and material); (5) Select agents and toxins covered by part 331 of title 7, Code of Federal Regulations, part 121 of title 9 of such Code, or part 73 of title 42 of such Code; or (6) Emerging and foundational technologies controlled pursuant to section 1758 of the Export Control Reform Act of 2018 ( 50 U.S.C. 4817 ). Interconnection arrangements means arrangements governing the physical connection of two or more networks to allow the use of another's network to hand off traffic where it is ultimately delivered ( e.g. , connection of a customer of telephone provider A to a customer of telephone company B) or sharing data and other information resources. Reasonable inquiry means an inquiry designed to uncover any information in the entity's possession about the identity of the producer or provider of covered telecommunications equipment or services used by the entity that excludes the need to include an internal or third-party audit. Roaming means cellular communications services ( e.g. , voice, video, data) received from a visited network when unable to connect to the facilities of the home network either because signal coverage is too weak or because traffic is too high. Substantial or essential component means any component necessary for the proper function or performance of a piece of equipment, system, or service. (b) Prohibition . (1) Section 889(a)(1)(A) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232) prohibits the head of an executive agency on or after August 13, 2019, 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. The Contractor is prohibited from providing to the Government 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 (c) of this clause applies or the covered telecommunication equipment or services are covered by a waiver described in FAR 4.2104 . (2) Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232) prohibits the head of an executive agency on or after August 13, 2020, 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 (c) of this clause applies or the covered telecommunication equipment or services are covered by a waiver described in FAR 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. (c) Exceptions. This clause does not prohibit 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. (d) Reporting requirement. (1) In the event the Contractor identifies covered telecommunications equipment or services used as a substantial or essential component of any system, or as critical technology as part of any system, during contract performance, or the Contractor is notified of such by a subcontractor at any tier or by any other source, the Contractor shall report the information in paragraph (d)(2) of this clause to the Contracting Officer, unless elsewhere in this contract are established procedures for reporting the information; in the case of the Department of Defense, the Contractor shall report to the website at https://dibnet.dod.mil . For indefinite delivery contracts, the Contractor shall report to the Contracting Officer for the indefinite delivery contract and the Contracting Officer(s) for any affected order or, in the case of the Department of Defense, identify both the indefinite delivery contract and any affected orders in the report provided at https://dibnet.dod.mil . (2) The Contractor shall report the following information pursuant to paragraph (d)(1) of this clause (i) Within one business day from the date of such identification or notification: the contract number; the order number(s), if applicable; supplier name; supplier unique entity identifier (if known); supplier Commercial and Government Entity (CAGE) code (if known); brand; model number (original equipment manufacturer number, manufacturer part number, or wholesaler number); item description; and any readily available information about mitigation actions undertaken or recommended. (ii) Within 10 business days of submitting the information in paragraph (d)(2)(i) of this clause: any further available information about mitigation actions undertaken or recommended. In addition, the Contractor shall describe the efforts it undertook to prevent use or submission of covered telecommunications equipment or services, and any additional efforts that will be incorporated to prevent future use or submission of covered telecommunications equipment or services. (e) Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (e) and excluding paragraph (b)(2), in all subcontracts and other contractual instruments, including subcontracts for the acquisition of commercial products or commercial services. (End of clause)