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FAR 52.204-25 and Section 889 explained

FAR 52.204-25 implements Section 889 telecom restrictions. Learn the 5 named companies, representations, and reporting deadlines.

Nov 10, 20265 min read11 sources

Why it matters

A contractor must examine both its offered equipment and its own covered use before making telecommunications representations.

The short version

  1. 1Section 889 Part A concerns government purchases; Part B concerns the contracting entity's use, including nonfederal work.
  2. 2The named companies are Huawei, ZTE, Hytera, Hikvision, and Dahua, with subsidiaries and affiliates included.
  3. 3Legacy reporting uses 1 and 10 business days; RFO 52.240-91 uses 72-hour reporting periods.

Federal Acquisition Regulation (FAR) 52.204-25 implements Section 889 restrictions on covered telecommunications equipment, services, and contractor use. It also requires reporting and subcontract terms (FAR 52.204-25).

Section 889 belongs to the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year 2019. The law separates government purchases from the contractor's own use of covered technology (Public Law 115-232, Section 889).

What is the current FAR 52.204-25 clause?

Acquisition.gov's ordinary FAR page shows the November 2021 clause. The page header identifies Federal Acquisition Circular 2026-01, effective March 13, 2026 (FAR 52.204-25).

The Revolutionary FAR Overhaul (RFO) uses different numbers. The General Services Administration (GSA) implementation memorandum identifies this consolidation (GSA RFO-2025-40):

FunctionOrdinary FARRFO model deviation
Telecommunications representations52.204-24 and 52.204-2652.240-90
Prohibitions, reporting, and flowdown52.204-2552.240-91

The incorporated text determines your obligations. GSA required its deviation for new solicitations and contracts from November 3, 2025. Contracting officers have discretion over applying it to existing actions.

The Department of Defense (DoD) directed use of RFO Part 40 effective February 1, 2026 (DoD Class Deviation 2026-O0025).

A June 23, 2026 proposed rule uses proposed permanent numbers 52.240-2 and 52.240-3. Those proposed numbers should not be substituted for the model deviation incorporated into a contract (RFO proposed rule).

Section 889 Part A vs Part B

Part A addresses what the government buys. Part B addresses the entity it contracts with.

RuleMain restrictionEffective date
Part A, Section 889(a)(1)(A)Government acquisition of systems, equipment, or services using covered technology in the specified wayAugust 13, 2019
Part B, Section 889(a)(1)(B)Contracting with an entity that uses such systems, equipment, or servicesAugust 13, 2020

The Part A implementation established the acquisition restriction (2019 interim rule). Part B reaches qualifying contractor use even when unrelated to federal contract performance (2020 interim rule).

Both tests concern a substantial or essential component, or critical technology within a system. A substantial or essential component is necessary for proper function or performance. The definition does not set a percentage-of-cost test (FAR 4.2101).

Therefore, checking only the product delivered to the customer is incomplete. Review the contracting entity's own covered use as well.

Which companies make covered telecommunications equipment?

The statute names 5 companies, with different equipment scopes. Subsidiaries and affiliates are included (Section 889(f)(3)).

Named companyNamed equipment scope
Huawei Technologies CompanyTelecommunications equipment
ZTE CorporationTelecommunications equipment
Hytera Communications CorporationVideo-surveillance and telecommunications equipment for the specified security purposes
Hangzhou Hikvision Digital Technology CompanyVideo-surveillance and telecommunications equipment for the specified security purposes
Dahua Technology CompanyVideo-surveillance and telecommunications equipment for the specified security purposes

For the last 3, those purposes include public safety, government-facility security, critical-infrastructure physical surveillance, and other national-security purposes.

Covered services include telecommunications or video surveillance supplied by those entities or using their equipment. The definition also allows specified national-security officials to identify additional entities connected to China's government (Section 889(f)(3)).

A Huawei or ZTE check is therefore only part of the review. Trace the producer and service provider, including subsidiaries and affiliates.

Are there Section 889 exceptions?

Yes. The FAR includes exceptions for certain third-party connections and equipment without the specified traffic-handling capabilities (FAR 4.2102(b)).

ExceptionWhat to establish
Third-party connectivityThe service connects to third-party facilities through arrangements such as backhaul, roaming, or interconnection
Limited-capability equipmentThe equipment cannot route or redirect user traffic or permit visibility into handled user data

Apply the actual technical conditions. A low price, a reseller's brand, or a general claim of compliance does not answer those conditions.

FAR 52.204-24 vs 52.204-26

FAR 52.204-26 contains broader representations about whether the offeror provides or uses covered equipment or services. The use representation follows a reasonable inquiry (FAR 52.204-26).

FAR 52.204-24 addresses the offer and supporting disclosures. A corresponding negative representation under 52.204-26 or the specified commercial-products provision removes the need to repeat that representation. Affirmative answers trigger additional disclosures (FAR 52.204-24).

Both provisions direct review of excluded parties in the System for Award Management (SAM). For the registration and identifier questions, see SAM registration and contractor identifiers.

A reasonable inquiry examines relevant information already in the entity's possession. The definition does not require an internal or third-party audit (FAR 4.2101).

A practical review sequence is:

  1. Gather equipment inventories, purchase records, and service agreements.
  2. Identify actual producers and providers.
  3. Examine both offered products and the contracting entity's use.
  4. Review the required exclusions information.
  5. Record findings and prepare any required disclosures.

Under RFO 52.240-90(c), submitting the offer makes the telecommunications representations after reasonable inquiry. Disclosed items and applicable waivers are addressed in that provision (RFO Part 52).

What are the 1-business-day and 10-business-day reports?

Those deadlines belong to FAR 52.204-25(d). The RFO counterpart uses a different reporting clock (FAR 52.204-25(d); RFO 52.240-91(h)).

Governing textInitial reportAdditional report
52.204-25Within 1 business day of identification or notificationWithin 10 business days after submitting the initial report
RFO 52.240-91Within 72 hours of identification or notificationWithin 72 hours after discovering required new information

The legacy initial report identifies contracts, affected orders, suppliers, equipment, and available mitigation. The follow-up adds mitigation details, prevention efforts, and planned improvements. Prepare those fields before an incident (2019 interim rule, 52.204-25(d)).

Reporting ordinarily goes to the contracting officer under the contract's procedures. DoD uses the reporting website specified in the clause. Indefinite-delivery reporting also addresses affected orders (FAR 52.204-25(d)).

Keep the base contract and order identifiers together. See indefinite-delivery contracts and task orders for that relationship.

Does Section 889 flow down to subcontractors?

The clause's required flowdown excludes the Part B entity-use prohibition. The July 2020 rule expressly distinguishes the Part A flowdown from Part B (2020 interim rule).

The RFO counterpart also excludes its Part B paragraph from mandatory flowdown. Read the actual subcontract terms, because the prime's own prohibited use remains relevant (RFO 52.240-91(j)).

What to do next

  • Identify the incorporated clause number and date before selecting a reporting deadline.
  • Review all 5 named manufacturers, their subsidiaries and affiliates, and covered services.
  • Complete a reasonable inquiry before making representations.
  • Record any exception analysis and required disclosures.
  • Prepare reporting fields and review the required subcontract flowdown.

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Questions people ask

What is FAR 52.204-25?

FAR 52.204-25 implements Section 889 restrictions on certain telecommunications and video-surveillance equipment and services. The November 2021 clause covers prohibited supplies, contractor use, reporting, and subcontract terms. RFO model deviations consolidate these requirements into 52.240-91, so check the version incorporated into the contract.

What is the difference between Section 889 Part A and Part B?

Section 889 Part A addresses government purchases of equipment, systems, or services using covered technology as a substantial or essential component or critical technology. Part B addresses contracting with entities that use such technology. The July 2020 interim rule explains that Part B also reaches qualifying use outside federal-contract performance.

Which companies are covered by the Huawei and ZTE prohibition?

Section 889 names Huawei, ZTE, Hytera, Hangzhou Hikvision, and Dahua, including subsidiaries and affiliates. Huawei and ZTE telecommunications equipment is covered. The other 3 have a specified security-purpose scope for video-surveillance and telecommunications equipment. Covered services and additional entities designated under the statutory definition also require review.

What is FAR 52.204-24 vs 52.204-26?

FAR 52.204-26 contains broader representations about whether an offeror provides or uses covered technology. FAR 52.204-24 addresses the particular offer and disclosures. The provision's instructions allow the corresponding negative representation already made under 52.204-26 or the specified commercial provision to avoid a repeated response.

When must a contractor report covered telecommunications equipment?

Under FAR 52.204-25, the initial report is due within 1 business day of identification or notification. Additional information follows within 10 business days after that report. RFO 52.240-91 instead uses 72 hours for the initial report and 72 hours after discovery of required additional information.

Sources

  1. 152.204-25 Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment. · Federal Acquisition Regulatory Council
  2. 2John S. McCain National Defense Authorization Act for Fiscal Year 2019, Public Law 115-232 · U.S. Government Publishing Office
  3. 3Class Deviation RFO-2025-40: FAR Class Deviation for FAR Part 40 in Support of Executive Order 14275, Restoring Common Sense to Federal Procurement · General Services Administration
  4. 4Class Deviation 2026-O0025, RFO Part 40 and DFARS Part 240 · Office of the Assistant Secretary of War for Acquisition and Sustainment
  5. 5Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 1, 2, 4, 33, 39, 40, and 53 · Federal Acquisition Regulatory Council
  6. 6Federal Acquisition Regulation: Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment · Federal Acquisition Regulatory Council
  7. 7Federal Acquisition Regulation: Prohibition on Contracting With Entities Using Certain Telecommunications and Video Surveillance Services or Equipment · Federal Acquisition Regulatory Council
  8. 8Subpart 4.21 Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment · Federal Acquisition Regulatory Council
  9. 952.204-26 Covered Telecommunications Equipment or Services-Representation. · Federal Acquisition Regulatory Council
  10. 1052.204-24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment. · Federal Acquisition Regulatory Council
  11. 11FAR Overhaul - Part 52 · Federal Acquisition Regulatory Council

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