Definitions
FAR 25.703-1 defines "Person" and "Sensitive technology" to clarify who and what is subject to Iran-related contracting prohibitions, ensuring proper compliance and eligibility assessment.
Overview
FAR 25.703-1 provides definitions for key terms used in the context of prohibitions on contracting with entities that engage in certain activities or transactions relating to Iran. Specifically, it clarifies what is meant by "Person" and "Sensitive technology" for the purposes of compliance with FAR 25.703. These definitions are critical for determining which entities and technologies fall under the scope of the prohibition, ensuring that contractors and contracting officers apply the rules correctly when assessing eligibility and compliance.
Key Rules
- Definition of Person
- Includes natural persons, a wide range of business entities, and successors to such entities, but excludes governments not operating as business enterprises.
- Definition of Sensitive Technology
- Covers hardware, software, telecommunications equipment, or other technology used to restrict information flow or speech in Iran, but excludes certain informational materials protected under U.S. law.
Responsibilities
- Contracting Officers: Must use these definitions to determine if an offeror or contractor is subject to the Iran-related prohibitions.
- Contractors: Must understand whether their entity or technology falls within these definitions to ensure compliance.
- Agencies: Should ensure training and guidance reflect these definitions for consistent application.
Practical Implications
- These definitions establish the scope of who and what is covered by the Iran-related contracting prohibitions, directly impacting eligibility for federal contracts.
- Misinterpretation can lead to noncompliance, ineligibility, or legal consequences.
- Contractors should carefully review their business structure and technology offerings against these definitions before bidding.