OMB recently released guidance to clarify the requirements of Section 889(b)(1) of the NDAA for 2019, which prohibits the use of grant funds for telecommunications and video surveillance services or equipment from certain Chinese companies. It states that referencing the applicable regulation in awards and notices of funding opportunities “may likely suffice” but recommends “including a specific provision.” It also explains that recipients may not include costs related to those prohibited services or equipment in their indirect cost rates. Venable LLP adds that these prohibitions apply to all federal awards as of August 13, 2020, even if not explicitly stated.
