NDAA Compliant – What It Means & Why It Matters (2025)

Not all video security equipment is legal for use in government projects. The National Defense Authorization Act (NDAA) sets strict rules on video surveillance equipment manufactured by banned manufacturers, ensuring enhanced security in federal agencies and critical sectors. 

An entire system overhaul may be needed to ensure compliance if you use non-compliant equipment. Understanding NDAA compliance is essential for those working on federally funded projects and government contracts.

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What is NDAA Compliance?

NDAA compliance refers to security and surveillance technology that meets the requirements of the National Defense Authorization Act (NDAA). This federal law includes rules to protect national security, especially regarding video surveillance cameras and telecommunications equipment produced by certain companies. [1]

A key section, NDAA Section 889, prohibits federal grant recipients, federal contractors, and government agencies from using or buying video surveillance equipment manufactured by banned companies, such as Huawei Technologies Company, Dahua Technology Company, and Hangzhou Hikvision Digital Technology.

Under the law, these named Chinese manufacturers are prohibited from supplying video surveillance servers, video recorders, or other security systems for federal projects. 

Industries affected by NDAA compliance include government facilities, critical infrastructure, and federal contractors working on federally funded projects.

Any entity that wants to receive federal funding, a federal loan, or grant funds must use NDAA-compliant cameras and avoid prohibited companies. This law helps protect sensitive locations and ensures that certain video surveillance devices meet strict compliance requirements.

Which Technologies & Brands Are Restricted?

white dome security camera mounted beneath a wooden overhang

Due to security risks, the National Defense Authorization Act (NDAA) restricts the use of certain technologies and brands in federal government projects. These restrictions apply to video surveillance [2] services provided, covered telecommunications equipment, and other critical technology.

Prohibited Manufacturers

The NDAA bans security equipment from the following named Chinese companies due to cybersecurity concerns:

  • Huawei Technologies Company
  • Dahua Technology Company
  • Hikvision Digital Technology Company
  • Hytera Communications Corporation

Restricted Technologies

  • Video surveillance cameras and video surveillance servers from prohibited manufacturers
  • Covered telecommunications equipment, including certain equipment used in access control and security monitoring
  • Open platform products that integrate with non-compliant software
  • AI-powered analytics technology from named Chinese manufacturers prohibited under NDAA

Industries Affected

  • Federal contractors working with the federal government
  • Critical infrastructure projects requiring camera NDAA compliant solutions
  • Security industry professionals installing services manufactured by an original equipment manufacturer (OEM)
  • Any business looking to reduce replacement costs by ensuring compliance from the start

How to Identify NDAA-Compliant Security Equipment

1. Verify Manufacturer Compliance – Choose equipment from approved vendors, ensuring they do not source components from prohibited manufacturers.

2. Check NDAA Certifications – Look for products labeled as camera NDAA compliant or check manufacturer documentation.

3. Review Original Equipment Manufacturer (OEM) Sources – Even if a product isn’t directly from a named Chinese company, it may contain covered telecommunications equipment that violates NDAA rules.

4. Assess Cybersecurity Standards – Ensure the device does not have open platform products that connect to non-compliant networks.

5. Consult a Security Expert – If unsure, work with professionals who understand compliance requirements for such entities in federal and critical sectors.

6. Verify Extended Compliance – Compliance extends to software and integrations, meaning any connected access control or analytics tools must also meet NDAA standards.

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NDAA Compliance vs. Non-Compliance: What It Means for Businesses

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Businesses working on federal government projects or receiving federal funding must use camera NDAA compliant equipment. Non-compliance can lead to serious risks.

Implications of NDAA Compliance

  • Access to federal contracts – Businesses using compliant video surveillance cameras and access control systems can bid for government contracts and federally funded projects.
  • Stronger cybersecurity – NDAA-compliant systems protect against vulnerabilities in covered telecommunications equipment from prohibited manufacturers.
  • Long-term cost savings – Businesses can reduce replacement costs by choosing NDAA-approved video surveillance services from trusted vendors.

Risks of Non-Compliance

  • Loss of eligibility for government projects – Businesses using certain equipment from named Chinese companies may be disqualified from federal projects.
  • Potential fines or contract termination – Using non-compliant video surveillance equipment manufactured by banned companies can lead to financial and legal consequences.
  • Entire system overhaul – If existing systems contain covered telecommunications equipment, businesses may need to replace everything to ensure compliance.

Steps to Ensure NDAA Compliance

1. Audit Current Security Equipment – Identify video surveillance cameras, access control systems, or AI-powered analytics tools sourced from prohibited companies.

2. Choose NDAA-Certified Products – Select NDAA-compliant devices from verified manufacturers that meet compliance requirements.

3. Verify Original Equipment Manufacturer (OEM) Sources – Ensure the product and its components are not linked to banned manufacturers like Hikvision Digital Technology Company or Hytera Communications Corporation.

4. Update Security Policies – Businesses working on government facilities, critical infrastructure, or federal projects should create internal guidelines for NDAA compliance.

5. Work with Compliance Experts – Consult specialists to confirm all video surveillance services provided and open platform products align with NDAA regulations.

6. Monitor Regulatory Updates – NDAA restrictions can change, so businesses should stay updated on any new prohibited manufacturers or compliance adjustments.

FAQs

How do I verify NDAA compliance?

To ensure compliance, check if the video surveillance equipment manufactured is from an NDAA-compliant vendor. Look for certification labels stating the product is camera NDAA compliant and review the manufacturer’s compliance documentation. Avoid equipment from named Chinese companies or those containing covered telecommunications equipment from prohibited manufacturers like Hikvision Digital Technology Company or Hytera Communications Corporation.

Who issues the NDAA?

The National Defense Authorization Act (NDAA) is issued by the federal government and passed by Congress. It is a federal law that outlines military spending and national security policies, including restrictions on certain video surveillance and critical technology to protect government agencies from cybersecurity threats.

Who does NDAA apply to?

The NDAA applies to federal contractors, government agencies, and businesses that want to receive federal funding or work on federal projects. It also impacts organizations involved in critical infrastructure, government contracts, or projects requiring video surveillance services provided by NDAA-compliant vendors.

Can businesses still use non-compliant cameras for private use?

Yes, businesses can use non-compliant equipment for private operations that do not involve federally funded projects. However, using certain equipment from banned manufacturers may pose security risks. If a business plans to work with government facilities or bid for federal contracts, it must replace any prohibited manufacturers’ devices.

How does NDAA compliance affect state and local governments?

While the NDAA primarily applies to federal government projects, many state and local governments follow the same compliance requirements to secure public facilities. Some states have adopted NDAA-aligned policies to prevent cybersecurity risks in video surveillance services provided for schools, public offices, and municipal projects.

What are the penalties for non-compliance?

Using non-compliant equipment can disqualify businesses from government contracts, result in financial penalties, and require an entire system overhaul to meet NDAA standards. Due to security concerns, Federal contractors and agencies violating NDAA may lose access to federal loan programs, grant funds, or federally funded projects.

Conclusion

Using NDAA-compliant cameras and video surveillance equipment ensures eligibility for government contracts, enhances cybersecurity, and helps businesses reduce replacement costs. Non-compliance can lead to disqualification from federal projects and costly system upgrades.

Need help selecting NDAA-compliant security solutions?

Contact Safe and Sound Security today to ensure compliance and protect your business.

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References:

  1. https://www.armed-services.senate.gov/imo/media/doc/fy25_ndaa_executive_summary.pdf
  2. https://www.sciencedirect.com/topics/computer-science/video-surveillance

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