November 23, 2020 (Rescinded December 11, 2020)
Office of The Director, National Institutes of Health (OD)
Effective August 13, 2020, the Office of Management and Budget revised 2 Code of Federal Regulations 200 to align with Section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232). This new section, 2 CFR 200.216, Prohibition on certain telecommunication and video surveillance services or equipment, prohibits Federal award recipients from using government funds to enter contracts (or extend or renew contracts) with entities that use covered telecommunications equipment or services.
The following term of award is therefore applicable to all NIH grants and cooperative agreements issued on or after August 13, 2020. As such, this notice modifies the terms and conditions of award for grants issued on or after that date. The NIH Grants Policy Statement will be updated at the time of its next publication to incorporate this term and condition into Section 4 – Public Policy Requirements, Objectives and Other Appropriation Mandates.
In accordance with the newly revised 2 CFR 200.216 and 200.471, a recipient and subrecipient are prohibited from expending grant funds to:
Note, this prohibition shall apply even if the contract is not intended to procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services.
For the purposes of this requirement, both at the time of application and as a term and condition of award:
1. COVERED TELECOMMUNICATIONS EQUIPMENT OR SERVICES means any of the following:
2. COVERED FOREIGN COUNTRY means the People’s Republic of China.
Under the National Public Policy Requirements (See NIH GPS Section 4) NIH requires applicants and recipients to certify compliance, by signing the face page of the application, the Authorized Organization Official is the responsible party for doing so. Recipients further certify compliance at the time of drawdown of funds from the Payment Management System. Recipients must maintain documentation on file to demonstrate that they have not procured or entered into contracts prohibited by this part and maintain appropriate internal controls to ensure ongoing compliance. Should NIH determine non-compliance, NIH will take appropriate enforcement actions, which may include termination of award.