Source: INDOT email sent 09/01/2020: INDOT-Attention Contractors Effective Immediately
Contractors,
To the attention of all INDOT contracted service providers.
Effective Immediately
This clause will be added to all INDOT professional services and construction contracts so that INDOT will be in compliance with federal requirements:
Prohibited Telecommunications and Video Surveillance Equipment and Services.
In accordance with federal regulations (including 2 CFR 200.216 and 2 CFR 200.471), the Contractor is prohibited from purchasing, procuring, obtaining, using, or installing any telecommunication or video surveillance equipment, services, or systems produced by:
(A) Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities), OR
(B) Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities), for any purpose to fulfill its obligations under this Contract. The Contractor shall be responsible to ensure that any subcontractors are bound by and comply with the terms of this provision. Breach of this provision shall be considered a material breach of this Contract.
BACKGROUND: On August 13, 2018, the President signed the FY 2019 National Defense Authorization Act (NDAA). Section 889(b) prohibits Federal agencies, after August 13, 2020, from obligating or expending financial assistance to obtain certain telecommunications and video surveillance services and equipment from specific producers.
On January 22,2020, the Office of Management and Budget (OMB) issued a Notice of Proposed Rulemaking that outlined revisions to 2 CFR 200, in part, to implement section 889 of the FY 2019 NDAA. Today, the Federal Register Notice issued the Final Rule and states that the amendment to 2 CFR 200.216 is effective on August 13, 2020.
The new 2 CFR 200.471 regulation provides clarity that the telecommunications and video surveillance costs associated with 2 CFR 200.216 are unallowable for services and equipment from these specific providers. OMB’s Federal Register Notice includes the new 2 CFR 200.216 and 2 CFR 200.471 regulations.
Thank you,
Indiana Department of Transportation (INDOT)
100 N. Senate Ave., IGCN
Indianapolis, IN 46204
