Iran Sanctions Act
Offerors must certify they do not engage in prohibited activities or significant transactions with Iran or its Revolutionary Guard Corps, or face severe penalties for false certification.
Overview
FAR 25.703-2 implements the Iran Sanctions Act by requiring offerors to certify that neither they nor their owned or controlled entities engage in certain prohibited activities related to Iran. Specifically, offerors must certify they do not participate in activities that could trigger sanctions under section 5 of the Act, including those related to Iran's energy sector or development of weapons of mass destruction. Additionally, offerors must certify they do not knowingly engage in significant transactions (over $10,000) with Iran's Revolutionary Guard Corps or its affiliates. Exceptions apply if the acquisition is subject to trade agreements and all products are designated country end products. False certifications can result in contract termination, suspension, or debarment for at least two years. This section is critical for ensuring compliance with U.S. sanctions laws in federal contracting.
Key Rules
- Certification Requirement
- Offerors must certify they and their controlled entities do not engage in sanctionable activities under the Iran Sanctions Act or significant transactions with Iran's Revolutionary Guard Corps.
- Remedies for False Certification
- False certifications can lead to contract termination, suspension, or debarment for at least two years.
- Exception for Trade Agreements
- Certification is not required if the acquisition is subject to trade agreements and all products are designated country end products.
Responsibilities
- Contracting Officers: Must obtain certifications, verify exceptions, and enforce remedies for false certifications.
- Contractors: Must provide accurate certifications and ensure compliance with the Iran Sanctions Act.
- Agencies: Must take appropriate action if false certifications are discovered, including termination, suspension, or debarment.
Practical Implications
- This regulation ensures federal contracts do not support prohibited activities related to Iran, aligning with U.S. foreign policy and legal requirements.
- Contractors must carefully review their activities and relationships to avoid inadvertent violations.
- Failure to comply can result in severe penalties, including loss of contracts and exclusion from future federal contracting.