U.S. FAR Section 889

Why does it matter?

Section 889 is the broadest supply chain prohibition in federal contracting. Part B reaches a contractor's own use of covered equipment anywhere in its enterprise, not only on the government work, and the clause goes into every solicitation and contract regardless of dollar value or commercial status. A contractor that represents does not use when a Hikvision camera sits in a warehouse, or that discovers covered equipment and fails to report it in one business day, faces the False Claims Act and contract remedies as well as loss of eligibility.

Key benefits include:

• One definition for all agencies

Covered telecommunications equipment or services is defined once, in 4.2101 and 52.204-25(a), by naming the five companies and their subsidiaries and affiliates.

• Two prohibitions with their own dates

Part A (procurement, August 13, 2019) and Part B (use by the contractor, August 13, 2020) are separate obligations with separate representations.

• Narrow exceptions

Only backhaul, roaming and interconnection services to a third party's facilities, and equipment that cannot route or redirect user data or permit visibility into it, are outside the ban (52.204-25(c)).

• A reporting clock

Discovery of covered items during performance must be reported to the contracting officer within one business day, with mitigation details within ten business days (52.204-25(d)).

• Flowdown to every tier

The substance of the clause, except the Part B use prohibition in (b)(2), goes into all subcontracts, including those for commercial products and services (52.204-25(e)).

How does it work?

Subpart 4.21 sets the policy. Section 4.2102(a)(1) bars an agency from procuring, obtaining, extending or renewing a contract for 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, on or after August 13, 2019. Section 4.2102(a)(2) bars contracting with an entity that uses such equipment, systems or services, on or after August 13, 2020, whether or not the use is in performance of a federal contract.

The representations come first. In 52.204-26 an offeror reviews the SAM exclusions for covered telecommunications and represents whether it does or does not provide covered equipment or services and, after a reasonable inquiry, whether it does or does not use them. If either answer is does, 52.204-24 requires the detailed offer-level representation and disclosure of the item, model, manufacturer and intended use. A reasonable inquiry is an inquiry designed to uncover information in the entity's possession, primarily documentation or other records, and does not require an internal or third-party audit (52.204-25(a)).

The clause itself, 52.204-25, carries the definitions, the two prohibitions in (b)(1) and (b)(2), the exceptions in (c), the reporting duty in (d) with its one-business-day and ten-business-day steps, and the flowdown in (e). Under the Revolutionary FAR Overhaul of 2025, the FAR Council's model deviation moved this content to a new Part 40 (40.202(d) and 40.204-2) with a replacement provision 52.240-90 and clause 52.240-91, and agencies have adopted class deviations on that basis while the codified FAR still carries 52.204-25; the statutory prohibition is unchanged.

Key Elements

• Covered telecommunications equipment or services (52.204-25(a))

Telecommunications equipment produced by Huawei or ZTE; for public safety, government facility security, critical infrastructure surveillance and other national security purposes, video surveillance and telecommunications equipment produced by Hytera, Hangzhou Hikvision or Dahua; services provided by those entities or using that equipment; and equipment or services the Secretary of Defense reasonably believes are connected to the government of the People's Republic of China. Subsidiaries and affiliates are included.

• Substantial or essential component and critical technology

Any component necessary for the proper function or performance of a piece of equipment, system or service, and critical technology as defined by reference to export control and nuclear lists (52.204-25(a)).

• The Part A prohibition (52.204-25(b)(1))

The contractor shall not provide any equipment, system or service that uses covered telecommunications equipment or services as a substantial or essential component or critical technology unless an exception or a waiver applies.

• The Part B prohibition (52.204-25(b)(2))

The agency may not enter into, extend or renew a contract with an entity that uses covered telecommunications equipment or services, regardless of whether that use is in performance of a federal contract.

• Reporting (52.204-25(d))

Within one business day of identification: contract and order numbers, supplier name and identifiers, brand, model, item description and any readily available mitigation; within ten business days: further mitigation and the efforts to prevent future use or submission. Department of Defense contractors report through dibnet.dod.mil.

• Waivers (4.2104)

An agency head could grant a one-time waiver for a requesting entity, with a compelling justification, a supply chain laydown and a phase-out plan, for no later than August 13, 2021 for Part A or August 13, 2022 for Part B; the Director of National Intelligence may waive on national security grounds.

What does it cover?

Subpart 4.21 applies to all federal acquisitions by executive agencies: the provisions go in all solicitations and the clause in all solicitations and contracts, including those for commercial products and commercial services (4.2105). It covers prime contractors, subcontractors at every tier through the flowdown, and the contractor's own enterprise use under Part B. It does not cover services that merely connect to a third party's facilities such as backhaul, roaming or interconnection, or equipment that cannot route or redirect user data traffic or permit visibility into user data (4.2102(b)). The statute separately bars the use of federal loan and grant funds for covered equipment (section 889(b)).

What are its objectives?

Section 889 and subpart 4.21 exist to keep equipment and services from five named Chinese manufacturers out of federal systems and out of the enterprises that serve the government.

Bar agencies from procuring covered telecommunications and video surveillance equipment or services as a substantial or essential component or critical technology of any system.

Bar agencies from contracting with entities that use such equipment, systems or services anywhere in their operations.

Require offerors to represent, after a reasonable inquiry, whether they provide or use covered equipment or services.

Require contractors to report covered items discovered during performance within one business day.

Push the prohibition through every subcontract tier, including commercial products and services.

Framework in Context

Section 889 is one of several federal supply chain prohibitions that the FAR Overhaul now gathers in Part 40, alongside the Kaspersky ban and Federal Acquisition Supply Chain Security Act orders. It operates independently of the cybersecurity requirements that contractors meet under NIST SP 800-171 and the Cybersecurity Maturity Model Certification, which concern how information is protected rather than whose equipment may be used. The Department of Defense applies the same statute through DFARS clauses as well as the FAR clause.

Common Framework Mappings

FAR Section 889 is often mapped to other security and procurement frameworks to ensure broad compliance, manage supply chain risk, and align vendor management practices across global regulatory and security requirements.

Mapped frameworks include:

CIS Controls v8.1

FedRAMP Rev. 5

ISO 27001:2022

ISO 27002:2022

NIST CSF 2.0

NIST 800-53 Rev.5

NIST 800-171 Rev. 3

PCI DSS 4.0.1

SOC 2

Cyber Essentials