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FEMA Policy 405-143-1, Prohibitions on Expending FEMA Award Funds for Covered Telecommunications <br />Equipment or Services (Interim), as used in this clause— <br />(b) Prohibitions. <br />(1) Section 889(b) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Pub. L. <br />No. 115-232, and 2 C.F.R. § 200.216 prohibit the head of an executive agency on or after Aug.13, 2020, <br />from obligating or expending grant, cooperative agreement, loan, or loan guarantee funds on certain <br />telecommunications products or from certain entities for national security reasons. <br />(2) Unless an exception in paragraph (c) of this clause applies, the contractor and its subcontractors may <br />not use grant, cooperative agreement, loan, or loan guarantee funds from the Federal Emergency <br />Management Agency to: <br />(i) Procure or obtain any equipment, system, or service that uses covered telecommunications <br />equipment or services as a substantial or essential component of any system, or as critical technology of <br />any system; <br />(ii) Enter into, extend, or renew a contract to procure or obtain any equipment, system, or service <br />that uses covered telecommunications equipment or services as a substantial or essential component of <br />any system, or as critical technology of any system; <br />(iii) Enter into, extend, or renew contracts with entities that use covered telecommunications <br />equipment or services as a substantial or essential component of any system, or as critical technology as <br />part of any system; or <br />(iv) Provide, as part of its performance of this contract, subcontract, or other contractual <br />instrument, any equipment, system, or service that uses covered telecommunications equipment or <br />services as a substantial or essential component of any system, or as critical technology as part of any <br />system. <br />(c) Exceptions. <br />(1) This clause does not prohibit contractors from providing— <br />(i) A service that connects to the facilities of a third -party, such as backhaul, roaming, or <br />interconnection arrangements; or <br />(ii) Telecommunications equipment that cannot route or redirect user data traffic or permit <br />visibility into any user data or packets that such equipment transmits or otherwise handles. <br />(2) By necessary implication and regulation, the prohibitions also do not apply to: <br />(i) Covered telecommunications equipment or services that: <br />i. Are not used as a substantial or essential component of any system; and <br />ii. Are not used as critical technology of any system. <br />(ii) Other telecommunications equipment or services that are not considered covered <br />telecommunications equipment or services. <br />(d) Reporting requirement. <br />(1) In the event the contractor identifies covered telecommunications equipment or services used as a <br />substantial or essential component of any system, or as critical technology as part of any system, during <br />contract performance, or the contractor is notified of such by a subcontractor at any tier or by any other <br />source, the contractor shall report the information in paragraph (d)(2) of this clause to the recipient or <br />subrecipient, unless elsewhere in this contract are established procedures for reporting the information. <br />(2) The Contractor shall report the following information pursuant to paragraph (d)(1) of this clause: <br />(i) Within one business day from the date of such identification or notification: The contract <br />number; the order number(s), if applicable; supplier name; supplier unique entity identifier (if known); <br />supplier Commercial and Government Entity (CAGE) code (if known); brand; model number (original <br />equipment manufacturer number, manufacturer part number, or wholesaler number); item description; <br />and any readily available information about mitigation actions undertaken or recommended. <br />M <br />