Subpart 25.3
Contracts Performed Outside the United States
FAR Subpart 25.3 establishes strict requirements for contractors and their personnel performing work outside the U.S., especially in operational or security-sensitive environments, to ensure legal compliance and accountability.
Overview
FAR Subpart 25.3 addresses the unique requirements and compliance obligations for contracts performed outside the United States, with a focus on contractor personnel operating in designated operational areas or supporting diplomatic/consular missions, as well as those performing private security functions. This subpart outlines the responsibilities, standards, and legal frameworks that apply to contractors and their employees working in foreign environments, often under heightened security or legal scrutiny.
Key Rules
- Contractor Personnel in Designated Operational Areas or Diplomatic/Consular Missions
- Contractors must comply with specific requirements regarding conduct, accountability, and legal obligations when operating in designated operational areas or supporting U.S. diplomatic or consular missions abroad.
- Private Security Functions Outside the United States
- Contractors performing private security functions must adhere to additional standards, including registration, reporting, and compliance with host nation and U.S. laws, as well as Department of Defense or Department of State directives.
Responsibilities
- Contracting Officers: Ensure contract clauses reflect the requirements for overseas performance, monitor contractor compliance, and coordinate with relevant agencies.
- Contractors: Must train personnel, maintain records, comply with legal and ethical standards, and report incidents as required.
- Agencies: Oversee contractor activities, provide guidance, and enforce compliance with applicable laws and regulations.
Practical Implications
- This subpart exists to mitigate risks and ensure accountability for U.S. contractors operating abroad, especially in high-risk or sensitive environments.
- It impacts daily contracting by imposing additional compliance, training, and reporting requirements.
- Common pitfalls include failure to comply with host nation laws, inadequate personnel training, and insufficient incident reporting.