Prohibition on contracting with entities that conduct restricted business operations in Sudan
Federal contracts cannot be awarded to entities conducting restricted business operations in Sudan, and contractors must certify compliance as a condition of award.
Overview
FAR 25.702 establishes a prohibition on awarding contracts to entities that conduct restricted business operations in Sudan. This regulation is part of the U.S. government's efforts to address human rights abuses and promote foreign policy objectives by restricting federal contracting with companies engaged in certain activities in Sudan. The section outlines definitions, certification requirements, remedies for violations, and possible waivers. Contractors must certify that they do not conduct restricted business operations in Sudan, and contracting officers are responsible for ensuring compliance before awarding contracts. Remedies for noncompliance may include contract termination or suspension, while waivers may be granted under specific circumstances if it is in the national interest.
Key Rules
- Definitions (25.702-1)
- Clarifies what constitutes "restricted business operations" in Sudan and defines relevant terms for compliance.
- Certification (25.702-2)
- Requires contractors to certify that they do not conduct restricted business operations in Sudan as a condition of contract award.
- Remedies (25.702-3)
- Specifies actions the government may take if a contractor is found to be in violation, including contract termination or suspension.
- Waiver (25.702-4)
- Allows for waivers of the prohibition if it is determined to be in the national interest, subject to specific procedures.
Responsibilities
- Contracting Officers: Must verify contractor certifications and ensure compliance with the prohibition before contract award.
- Contractors: Must accurately certify their business operations regarding Sudan and avoid restricted activities.
- Agencies: May grant waivers in the national interest and must enforce remedies for violations.
Practical Implications
- This section exists to align federal contracting with U.S. foreign policy and human rights objectives.
- Contractors must conduct due diligence on their business operations to avoid ineligibility for federal contracts.
- Failure to comply can result in severe penalties, including contract termination and suspension from future awards.