Section 889 is one of those rules that quietly disqualifies firms that never saw it coming — because it can turn on equipment sitting in your own office, not just what you sell the government. If you contract with the federal government, you need to understand it.

What Section 889 is

Section 889 of the FY2019 National Defense Authorization Act bans covered telecommunications equipment and services from federal contracting. “Covered” means gear and services from a specific set of Chinese companies named in the law — including Huawei, ZTE, Hytera, Hikvision, and Dahua (and their subsidiaries and affiliates), particularly video surveillance and telecom equipment.

It has two parts, and the second is the one that surprises people:

  • Part A — the government can’t buy covered equipment or services as a substantial or essential component of any system.
  • Part B — the government can’t contract with any company that uses covered equipment or services — even if that use has nothing to do with the government contract. This is about your company’s own systems, not just what you deliver.

The representation you make

Section 889 shows up as a representation you provide — in your SAM.gov registration (the annual reps) and often per-offer. You represent whether you provide covered telecom (Part A) and whether you use it (Part B). Because a rep is a certification, getting it wrong isn’t a paperwork slip — a false representation carries real False Claims Act exposure.

How to comply

  1. Inventory your systems. Look at your network gear, phones, cameras, and — often overlooked — video surveillance at your facilities. Covered cameras are a frequent culprit.
  2. Check your supply chain and subcontractors. Covered equipment can enter through vendors and lower tiers, not just direct purchases.
  3. Remove or remediate covered equipment, and keep records of what you found and fixed.
  4. Answer the reps accurately, and re-check when your environment changes — a new office or acquired company can reintroduce covered gear.

Limited waivers exist, but they’re narrow and agency-controlled — don’t plan around one.

Where it fits

Section 889 is part of a broader supply-chain security push in federal contracting that also includes CMMC and NIST 800-171 (protecting controlled information) and country-of-origin rules like TAA and Buy American. Treat them as one compliance posture, not three unrelated checkboxes — the government increasingly expects you to control your whole supply chain.

The bottom line

Section 889 bans covered Chinese telecom and surveillance gear from federal supply chains — including equipment your firm merely uses. Inventory your systems, purge covered equipment, answer the reps truthfully, and keep re-checking. It’s a small audit that prevents a disqualifying — and legally risky — surprise.

This article is general information, not legal advice. The covered-entity list and requirements change; verify current Section 889 rules (FAR 52.204-24/-25/-26) before relying on this.