Revision to Code of Federal Regulations Prompts New Rule for Grantees

Funding News Edition: December 16, 2020
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Effective August 13, 2020, federal award recipients are prohibited from using government funds to directly procure or enter, extend, or renew contracts with entities that use telecommunications equipment or services covered by 2 Code of Federal Regulations 200. Each institution’s authorized organizational representative is responsible for certifying compliance.

Covered Equipment and Services

The regulation identifies certain telecommunications equipment or services produced by the following companies or their subsidiaries and affiliates:

  • Huawei Technologies Company
  • ZTE Corporation
  • Hytera Communications Corporation
  • Hangzhou Hikvision Digital Technology Company
  • Dahua Technology Company

Refer to the December 11, 2020 Guide notice for exact stipulations of which equipment and services are covered.


The rule applies to grant awards made on or after August 13, 2020. Federal funds from such awards cannot be used to

  • Procure or obtain any covered telecommunications equipment, system, or services.
  • Enter, extend, or renew contracts with entities that use covered telecommunications equipment or services.

Keep in mind, the prohibition on grantees establishing contracts (i.e., subcontracts, subawards) using federal support (i.e., grant funds) applies even if the purpose of the contract is unrelated to procuring telecommunications equipment or services. The partnering entity’s use of covered equipment or services is what qualifies.

Direct questions about compliance to the Division of Grants Compliance and Oversight within NIH’s Office of Policy for Extramural Research Administration.

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