Sneak Preview: FAQ Addresses Covered Technologies Under §200.216
(The following was excerpted from a recent Thompson Grants 360 article.) Recipients of financial assistance, when certifying that they will comply with all applicable laws, rules and regulations related to their awards, now also must certify that they will abide by the new uniform guidance prohibition on certain covered telecommunications and video surveillance services or equipment (§200.216), according to a recently released frequently asked question (FAQ) document.
The FAQ document responds to numerous questions the Office of Management and Budget (OMB) has received about the new provision at §200.216, which was included in its Aug. 13 revisions to the uniform guidance. While the provision at §200.216 became effective on Aug. 13, the majority of provisions under the revised guidance became effective Nov. 12. The provision states that “recipients and subrecipients are prohibited from obligating or expending loan or grant funds to: (1) procure or obtain; (2) extend or renew a contract to procure or obtain; or (3) enter into a contract (or extend or renew a contract) to procure or obtain equipment, services or systems that use(s) covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.”
“Covered” equipment or services are those produced by Huawei Technologies Company, ZTE Corporation, Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company or Dahua Technology Company (or any subsidiary or affiliate of such entities). It also includes telecommunications or video surveillance equipment or services 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 that is owned or controlled by the government of a covered foreign country.
In response to a question as to whether recipients (or subrecipients) need to certify that goods or services procured under a federal award are not covered telecommunications equipment or services, the FAQ states that when the recipient or subrecipient signs an award agreement, it is certifying that it will comply with all applicable laws, rules and regulations, including the provision at §200.216. If the federal agency or pass-through entity suspects that the goods and services being procured under the award may, in fact, be prohibited, it must follow its own policies and procedures to take appropriate action, and when appropriate, pursue remedies for noncompliance, as required under the uniform guidance. OMB separately will evaluate certification and representation statements in SAM and will make any necessary updates.
(The full version of this story has now been made available to all for a limited time here.)
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