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Section 889 of FAR Case 2019 009

Posted by Jaq-Lin Larder on June 5, 2023 in Announcements

The US Government updated the 2 CFR and FAR - terms and conditions that are applicable to all Institutions that receive US federal funding especially DOD, USDA and NIH (“Funded Institutions”).

2 CFR 200.216 includes requirements that prohibit Funded Institutions from using certain telecommunications and video surveillance services or equipment. This is an expansion of the limitation in S.889 of the John McCain National Defense Authorisation Act which was (and continues to be) applicable to US Executive Agencies, prohibiting the head of an executive agency from procuring or obtaining or extending or renewing a contract to procure or obtain, any equipment, system or service that used covered telecommunication equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.

By virtue of 2 CFR 200.216 any institution that receives US federal funding is prohibited (generally and regardless of whether that use is in performance of work under a US  federal contract or grant) from using covered equipment, i.e., telecoms equipment and services produced or provided by Huawei Technologies Company or ZTE Corporation or video surveillance products or telecommunications equipment and services produced or provided by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company or Dahua Technology Company (or any subsidiary or affiliate of those entities). This prohibition also extends to telecommunications or video surveillance equipment or services produced or provided by an entity that the US Secretary of Defence “reasonably believes to be an entity owned or controlled by or otherwise connected to the government of a covered foreign country”.

As an institution that receives US federal funding, Dalhousie is required to comply with 2 CFR 200.216/Section 889. Additionally, 2 CFR 200.216/Section 889 extends beyond US-funded researchers and activities and Dal’s research community to have implications for the university – it prohibits the entire entity from purchasing, having or using the covered equipment and services.

Going forward, researchers applying for US federal funding will be asked to confirm awareness of and compliance with the above policy and if, in the course of their research, they have been in receipt of the above technology from research collaborators.

All researchers should be aware of this prohibition and should avoid using or acquiring equipment from the above listed entities within their research activities.

For any questions or concerns confirming if your preferred vendor confirms with section 889, please reach out to Procurement ( 

For any questions or concerns related to US Funded Research accounts, please reach out to Research Accounting (