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<br />Preparedness Grants Manual <br />Effective Aug. 13, 2020, FEMA recipients and subrecipients may not use any FEMA funds <br />under open or new awards to: <br />. <br />. <br />. <br />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 />Enter, extend, or renew a contract to procure or obtain any equipment, system, or service that <br />uses covered telecommunications equipment or services as a substantial or essential <br />component of any system, or as critical technology of any system; or <br />Enter, extend, or renew contracts with entities that use covered telecommunications equipment <br />or services as a substantial or essential component of any system, or as critical technology as <br />part of any system. <br />Replacement Equipment and Services: FEMA grant funding may be permitted to procure <br />replacement equipment and services impacted by this prohibition, provided the costs are otherwise <br />consistent with the requirements in this manual and the applicable NOFO. <br />Covered Communications <br />Per section 889(f)(2)-(3) of the FY 2019 NDAA and 2 C.F.R. § 200.216, covered telecommunications <br />equipment or services means: <br />.Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation, <br />(or any subsidiary or affiliate of such entities); <br />.For the purpose of public safety, security of Government facilities, physical security surveillance <br />of critical infrastructure, and other national security purposes, video surveillance and <br />telecommunications equipment produced by Hytera Communications Corporation, Hangzhou <br />Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or <br />affiliate of such entities); <br />. <br />. <br />Telecommunications or video surveillance services provided by such entities or using such <br />equipment; or <br />Telecommunications or video surveillance equipment or services produced or provided by an <br />entity that the Secretary of Defense, in consultation with the Director of National Intelligence or <br />the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or <br />controlled by, or otherwise connected to, the People’s Republic of China. <br />Examples of the types of products covered by this prohibition include phones, internet, video <br />surveillance, and cloud servers when produced, provided, or used by the entities listed in the <br />definition of “covered telecommunications equipment or services.” See 2 C.F.R. § 200.471. <br />3.2.4. FUNDING FOR CRITICAL EMERGENCY SUPPLIES <br />Critical emergency supplies—such as shelf stable products, water, and basic medical supplies—are <br />an allowable expense under the HSGP (SHSP and UASI only), THSGP, and EMPG Program. Each <br />state, urban area, or tribe must have FEMA’s approval of a five-year viable inventory management <br />plan prior to allocating grant funds for stockpiling purposes. The Inventory Management Plan should <br />address how critical supplies will be maintained and sustained by the grant recipient and include a <br />14