The NDAA is a crucial U.S. federal law that significantly impacts the security technology sector. Section 889, in particular, has garnered attention within the physical security industry due to its implications for U.S.-based end-users receiving federal funding. Compliance with Section 889 is essential for government facilities and federally funded projects in the United States to mitigate potential physical security risks.
This guide delves into NDAA Section 889, which prohibits the use of equipment from specified China-based video surveillance companies and provides alternatives.
Importance of NDAA Compliance in the Security Industry
Awareness of NDAA Section 889 is paramount for security firms for several reasons:
- Access to Government Contracts: Many businesses rely on government contracts for revenue. Compliance with Section 889 is often a prerequisite for contract eligibility.
- Legal Requirements: The NDAA imposes restrictions on the procurement of certain equipment from designated countries or entities.
- Cybersecurity Protection: Emphasizing cybersecurity, the NDAA helps mitigate cyber threats, ensuring that security products and services meet stringent cybersecurity standards.
- Building Trust: Compliance signals a commitment to adhering to legal requirements, fostering trust with government agencies, businesses, and the public.
- Risk Management: Compliance with NDAA Section 889 helps mitigate legal, financial, and operational risks, demonstrating dedication to secure practices.
Under NDAA Section 889, security integrators cannot sell or install non-compliant security cameras. Federal entities and those funded by federal dollars are also prohibited from engaging integrators using products from specified companies.
Security Technology and NDAA Section 889 Compliance
NDAA Section 889 prohibits the procurement of equipment or services using “covered telecommunications equipment or services” from specified companies. This includes extending or renewing contracts involving such equipment or services, and using federal funds for these purposes.
Covered equipment and services include:
- Telecommunications equipment by Huawei Technologies, ZTE Corporation, or their subsidiaries.
- Video surveillance and telecommunications equipment by Hytera Communications, Hangzhou Hikvision Digital Technology, Dahua Technology, or their subsidiaries.
- Telecommunications or video surveillance services provided by these entities or utilizing their equipment.
NDAA Section 889 is mandatory for U.S. federal agencies and organizations working with the government. It prohibits federal agencies from purchasing and grant recipients from using federal funds for certain Chinese-manufactured telecommunications and video surveillance equipment.
Contractors in security technology must stay informed and take necessary steps to comply with Section 889:
- Inventory Assessment: Identify if federal funds are used for prohibited video security equipment or services.
- Replacement and Removal: Remove and replace non-compliant equipment with compliant, open-platform alternatives to minimize system overhaul costs.
- Continuous Compliance: Given the evolving security landscape, conduct regular assessments, regulatory reviews, and update security policies to maintain compliance.
Key Considerations for NDAA Physical and Cybersecurity Compliance
While NDAA Section 889 primarily affects physical security and the use of Chinese video security equipment in government facilities, cybersecurity remains crucial. Contractors should stay updated and take proactive measures to ensure compliance, enhancing security in government projects and safeguarding classified information.
Please note: This article serves informational purposes only and does not constitute legal advice. For specific guidance tailored to your organization, consult legal and compliance professionals.