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awarding agency in accordance with the requirements of 2 CFR 200.313 (e) (2)
<br />and the Subrecipient shall notify Department Key Personnel to initiate approval by
<br />the federal awarding agency.
<br />ix. Records for equipment shall be retained by the Subrecipient for a period of six (6) years
<br />from the date of the disposition, replacement, or transfer. If any litigation, claim, or audit is
<br />started before the expiration of the six- (6-) year period, the records shall be retained by the
<br />Subrecipient until all litigation, claims, or audit findings involving the records have been
<br />resolved.
<br />b. Equipment purchases (those with a current per -unit fair market value in excess of $5,000) must
<br />be identified and explained to the Department. The use, management, and disposition of such
<br />equipment is subject to requirements outlined in 2 CFR 200.313. Before making such
<br />purchases, the Subrecipient should analyze the cost benefits of purchasing versus leasing
<br />equipment, especially those subject to rapid technical advances.
<br />c. Unless expressly provided otherwise, all equipment must meet all mandatory regulatory and/or
<br />DHS/FEMA adopted standards to be eligible for purchase using federal award funds.
<br />d. If funding is allocated to support emergency communications activities, the Subrecipient must
<br />ensure that all projects comply with SAFECOM Guidance on Emergency Communications
<br />Grants, located at https://www.cisa.bov/safecom/funding, including provisions on technical
<br />standards that ensure and enhance interoperable communications.
<br />e. Effective August 13, 2020, FEMA recipients and subrecipients, as well as their contractors and
<br />subcontractors, may not obligate or expend any FEMA award funds to:
<br />i. Procure or obtain any equipment, system, or service that uses covered telecommunications
<br />equipment or services as a substantial or essential component of any system, or as critical
<br />technology of any system;
<br />ii. Enter into, extend, or renew a contract to procure or obtain any equipment, system, or
<br />service that uses covered telecommunications equipment or services as a substantial or
<br />essential component of any system, or as critical technology of any system; or
<br />iii. Enter into, extend, or renew contracts with entities that use covered telecommunications
<br />equipment or services as a substantial or essential component of any system, or as critical
<br />technology as part of any system.
<br />This prohibition regarding certain telecommunications and video surveillance services or
<br />equipment is mandated by section 889 of the John S. McCain National Defense Authorization Act
<br />for Fiscal Year 2019 (FY 2019 NDAA), Pub. L. No. 115-232 (2018) and 2 CFR 200.216, 200.327,
<br />200.471, and Appendix II to 2CFR200. Recipients and subrecipients may use DHS/FEMA grant
<br />funding to procure replacement equipment and services impacted by this prohibition, provided
<br />the costs are otherwise consistent with the requirements of the NOFO.
<br />Per subsections 889(f)(2)-(3) of the FY 2019 NDAA, and 2 CFR 200.216, covered
<br />telecommunications equipment or services means:
<br />i. Telecommunications equipment produced by Huawei Technologies Company or ZTE
<br />Corporation, (or any subsidiary or affiliate of such entities);
<br />ii. For the purpose of public safety, security of government facilities, physical security
<br />surveillance of critical infrastructure, and other national security purposes, video
<br />surveillance and telecommunications equipment produced by Hytera Communications
<br />Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology
<br />Company (or any subsidiary or affiliate of such entities);
<br />iii. Telecommunications or video surveillance services provided by such entities or using such
<br />equipment; or
<br />iv. Telecommunications or video surveillance equipment or services produced or provided by
<br />an entity that the Secretary of Defense, in consultation with the Director of National
<br />Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be
<br />DHS-FEMA-SLCGP-FY23
<br />Page 6 of 39 Everett, E24-268
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