The Council on Governmental Relations (COGR) submitted a letter to the Office of Management and Budget (OMB) addressing concerns regarding the implementation of prohibitions on certain telecommunications and video surveillance equipment, as outlined in revisions to 2 CFR Part 200 following Section 889 of the 2019 National Defense Authorization Act (NDAA). While COGR acknowledges the importance of safeguarding national security, it highlights confusion arising from the inconsistent language and undefined terms in the revised Uniform Guidance (UG), particularly sections 200.216 and 200.471. COGR points out that differences between the contractual and grant-related prohibitions, as well as ambiguities around key terms such as “substantial or essential component” and “critical technology,” have led to inconsistent agency interpretations and implementation challenges for federal award recipients.
COGR urges the OMB to clarify the scope of prohibitions to more accurately align with legislative intent, suggesting that restrictions should focus solely on the procurement or use of covered equipment, services, or systems, rather than broadly prohibiting engagements with any entities utilizing such technologies. The organization further recommends that the UG adopt relevant definitions from the Federal Acquisition Regulation (FAR) and provide explicit guidance regarding the policy’s application to subrecipients, including those in regions where the prohibited technologies dominate the telecommunications infrastructure. COGR expresses concern that the lack of clarity may inadvertently hinder important international collaborations and requests the development of possible waiver processes for affected entities. The letter closes with an invitation for further dialogue to resolve these issues.
