Which Procurements Are Impacted by Section 889 Rule and Why It Might Blindside You

Procurements impacted by Section 889 rule explained

A Wild Reminder: Why Section 889 Is Wrecking Plans

Maybe you think you’re safe. After all, you don’t sell routers or build satellites, right? Wrong.

Section 889 is not just lurking behind tech contracts anymore. It’s oozing across almost every single kind of federal procurement you can imagine. From IT modernization projects to paperclip deliveries. Honestly, even janitorial services aren’t immune if their badge scanners run on restricted tech.

No one told you about that at the kickoff meeting? Funny. They usually don’t.

Wait, What Even Is Section 889 Again?

Let’s keep this simple because your brain probably already hurts from reading 17 compliance memos this week.

Section 889 of the 2019 NDAA says the government is sick and tired of buying stuff from companies linked to certain Chinese firms. You know the ones: Huawei, ZTE, Dahua, Hikvision, Hytera. You could practically chant them in your sleep at this point.

It has two beasts inside it.

First, Part A, which says Uncle Sam won’t buy gear, systems, or services from those companies. Pretty obvious.

Second, Part B, which is sneakier. It bans the government from contracting with anyone who uses banned equipment or services. Like, even in your back office, collecting dust in a server closet no one’s opened since 2018.

Sounds impossible to track? Yeah, it kind of is.

Who Has to Worry? (Spoiler: You)

If you are touching federal funds in any way, shape, or form, you better be thinking about Section 889.

Big primes. Tiny startups. Grantees. Cooperative agreements. It doesn’t matter if you’re selling cybersecurity software or folding chairs, you still have to care.

Procurements That Get Hit

There is no graceful way to put it. Section 889 hits everything.

Micro-purchases under $10,000? Yep.
Service contracts like cybersecurity assessments? For sure.
Construction contracts building out a new DoD site? Of course.
Research and development grants for aerospace ideas? Absolutely.

Heck, one agency asked a cleaning company to certify 889 compliance last month because they used a Hikvision camera system at their office. I wish I were kidding.

Where It Really Bites: Telecom, IT, and Construction

If your contract even smells like telecom or IT, congratulations, you are under a microscope.

Anything involving networks, routers, switches, cloud storage, servers, cabling infrastructure, you name it. Agencies will ask, and not nicely, if you have covered tech anywhere in your ecosystem.

Construction companies wiring new offices? Guess what. You are now telecommunications vendors too, apparently.

The Subcontractor Nightmare

The most savage part is, you can be doing everything right, and your subcontractor can still blow it for you.

If your low-bid wiring subcontractor uses banned Hikvision cameras on their jobsite, your prime contract could be tossed out like a week-old sandwich.

It does not matter if you had no idea. You are still on the hook.

It’s like hosting a backyard BBQ and being fined because your cousin brought a banned lawn chair. Welcome to federal procurement in 2025.

The Certification Tightrope

Before award, you have to certify you are clean under Section 889. Not maybe clean. Not trying to be clean. Certified clean.

That certification is a grenade with the pin half-pulled.

If you certify wrong, even by accident, you could get hit with False Claims Act liability, have your contract terminated, or wind up on the government’s naughty list. That list is long, by the way, and it has a lot of sad company logos on it.

Real Talk: Compliance Is Getting Worse, Not Easier

The Infrastructure Investment and Jobs Act money that’s flooding the system right now? Agencies are using some of that to hire auditors.

They are asking for system security plans. Telecom audits. Proof, not promises. Some of them are even calling your subcontractors directly.

If you think they won’t check your tech stack, your warehouse, or even your office’s wireless routers, you are rolling dice with a loaded gun.

Stop Guessing. Get Capitol 50 Consultants Inc on Your Side

Section 889 compliance is like trying to dodge raindrops in a hurricane.

If you think you’re covered because you told your vendors to “do the right thing,” you might already be too late.

At Capitol 50 Consultants Inc, we help federal contractors build real, defensible Section 889 programs, not wishful thinking.

Our services include

  • Full supply chain sweeps and vendor audits
  • Certification coaching and documentation support
  • Emergency damage control if you find hidden noncompliance
  • Subcontractor management and compliance flows
  • Staff training that is actually useful and not just another boring slide deck

You do not get second chances with Section 889. One wrong click, one missed camera, one cheap Wi-Fi router, and your contract can vanish into thin air.

Reach out today and let’s make sure your name is not the next one in a GAO report.

Visit: https://cap50.com/
Book here
Call: (202) 555-5050

Secure your business. Sleep better at night. We’ve got you.

Conclusion: Section 889 Is Not Going Away

Maybe you hoped Section 889 would get repealed. Maybe you thought no one would notice. Maybe you figured if you kept your head down, it would not matter.

It matters.

This rule is the iceberg under the water, and too many contractors are still on deck, sipping cocktails and ignoring the tilt.

Get compliant. Stay compliant. Or watch the contracts you worked so hard for drift away.

Your call.

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