What's covered
"Covered" means telecommunications equipment from Huawei and ZTE, video surveillance and telecommunications equipment from Hytera, Hikvision and Dahua when used for public safety, government facility security or critical infrastructure surveillance, and the same from their subsidiaries and affiliates, with related services. The rule has two halves:
- Part A (in effect since August 13, 2019): don't provide the government with equipment, systems or services that use covered equipment as a substantial or essential component, or as critical technology.
- Part B (in effect since August 13, 2020): agencies can't contract with an entity that uses it, even for work unrelated to the federal contract.
There are two exceptions: services that connect to a third party's facilities, such as backhaul, roaming or interconnection; and equipment that can't route or redirect user data or see into it.
One rule, three clause numbers
The FAR Overhaul has left this rule with different numbers in different contracts. Check which one is in yours before you update a template.
| Version | Prohibition | Representation | Report within | Status |
|---|---|---|---|---|
| FAR as codified | 52.204-25 (Nov 2021) | 52.204-24, 52.204-26 | One business day, then more within 10 business days | In the FAR today |
| Overhaul class deviations | 52.240-91 | 52.240-90 | 72 hours | In use where an agency adopted it |
| Proposed rule, FAR Case 2026-001 | Consolidated in new Part 40 clauses (52.240-2, -3) | See the rule | See the rule | Proposed June 23, 2026; not final |
The deviation clause, 52.240-91, also folds in the Kaspersky and ByteDance prohibitions, which sit in separate clauses today (GSA's deviation memo lists the replacements). For open solicitations and awarded contracts, that memo leaves it to the contracting officer whether to amend, so a single prime can hold contracts on both numbers.
A subcontract template that cites only 52.204-25 may not match a prime contract that carries 52.240-91, and the reporting clock differs. More on the three versions of the FAR.
What flows down, and what doesn't
- The prohibition flows down everywhere. 52.204-25(e) goes in "all subcontracts and other contractual instruments", commercial ones included, with no dollar threshold. 52.240-91(j) says much the same.
- Part B doesn't. The flow-down leaves out paragraph (b)(2) of 52.204-25, and (d)(1) of 52.240-91. A sub's own use outside your work isn't passed down by the clause. Your prime's representation about its own use still stands.
- The representations don't flow down. 52.204-24 and 52.204-26 are provisions for offerors, with no flow-down paragraph. Primes commonly ask subs for one anyway, because it is the practical way to reach the reasonable inquiry behind their own answer.
- Reporting comes back up. If a sub at any tier tells you it has found covered equipment in performance, your report clock starts.
What a reasonable inquiry is
A reasonable inquiry looks at information in the company's possession about who produces or provides the equipment and services it uses. It doesn't need an internal or third-party audit. In practice that means going through what you already hold, such as asset records and purchasing data for telecoms, networking and cameras, and writing down what you looked at. 52.204-26 also has the offeror review SAM.gov's excluded parties for entities excluded for covered telecommunications.
What to collect from each sub
- A signed answer: does the company provide covered equipment or services in its offerings, and does it use them, after a reasonable inquiry?
- If yes to either: what, where, and which exception or waiver it relies on
- Confirmation that it flows the clause down to its own subs
- A promise to tell you promptly if it finds covered equipment during performance, sized to your own reporting clock
- The date, and a repeat at renewal: a representation ages
For grants, the matching rule is 2 CFR 200.216, which limits spending award funds on covered equipment. See the 2 CFR guide.
How Watch helps
Watch's supplier portal sends a Section 889 representation questionnaire built on 52.204-26: provides, uses, whether a reasonable inquiry was made, and flow-down, with a signed attestation. A disclosed "yes" becomes a finding on that supplier, and the Section 889 requirement template measures suppliers against the questionnaire.
Watch doesn't inspect anyone's network or find covered equipment. It holds what your subs tell you, dated and signed. The questionnaire cites the 52.204 numbers, so if your contract carries 52.240-91, attach your own wording. Reports to the government stay with you.