Mandatory: Formula, Block and Entitlement Grants

Prohibition on Expending HHS Award Funds for Covered Telecommunications Equipment or Services as Per 2 CFR 200.216

Effective August 13, 2020

This applies to mandatory programs listed in 2 CFR 200.101 (e) and (f). Visit disclaimer page

"Prohibition on certain telecommunications and video surveillance services or equipment."

(a) As described in CFR 200.216, recipients and subrecipients are prohibited to obligate or spend grant funds (to include direct and indirect expenditures as well as cost share and program) to:

(1) Procure or obtain,

(2) Extend or renew a contract to procure or obtain; or

(3) Enter into contract (or extend or renew contract) to procure or obtain equipment, services, or systems that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. As described in Pub. L. 115-232, section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).

i. For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities).

ii. Telecommunications or video surveillance services provided by such entities or using such equipment.

iii. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise, connected to the government of a covered foreign country.

Changes to Acquisition Thresholds

The National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2018 increased the micro-purchase threshold to $10,000 and the Simplified Acquisition Threshold (SAT) to $250,000. In addition, the NDAA FY2017 enables research institutions to request micro-purchase thresholds above $10,000. However, these changes have not been codified in the FAR. As a result, through Memorandum M-18-18 Visit disclaimer page Visit disclaimer page,Visit disclaimer page OMB issued an exception that allows the increased thresholds to be used pending codification in the FAR, effective June 20, 2018.

Federal agencies are required to implement the procurement threshold changes in the Notice of Award (NoA) Terms and Conditions, and recipients may implement the changes in their internal procedures. The Award Term for Micro-Purchase and Simplified Acquisition Threshold Exception explains the provisions of NDAA FY18 and FY17, and applies to all ACF awardees.


These pages consist of informaton, guidance, and materials related to Real Property and Tangible Personal Property (i.e., equipment and supplies). Currently it will not include Intangle Property (ie.g., copyright, patents, or securities). For more information, please see Property. Only a few mandatory grant programs allow federal funds to be used for acquisition/purchase, construction, and/or major renovations. For more information, please see the Applicable ACF Programs listing.

Terms and Conditions

The following terms and conditions apply to all mandatory grant programs administered by ACF.

Please also review the Program Specific Terms and Conditions that apply to each individual grant program.