25.703-3 Prohibition on contracting with entities that export sensitive technology to Iran
Source: FAR 25.703-3 on acquisition.gov
Contractors must certify they do not export sensitive technology to Iran to be eligible for federal contracts, unless a trade agreement exception applies.
Overview
FAR 25.703-3 prohibits executive agencies from entering into or extending contracts with entities that export sensitive technology to Iran, as determined by the President and listed in the System for Award Management (SAM). Offerors must certify that they do not export sensitive technology to the Iranian government or its affiliates. However, this representation is not required if the acquisition falls under trade agreements and all products or construction materials offered are designated country end products or materials, as defined in FAR subpart 25.4.
Key Rules
- Contracting Prohibition
- Agencies cannot contract with or extend contracts to entities exporting sensitive technology to Iran and listed as excluded in SAM.
- Offeror Representation Requirement
- Offerors must certify they do not export sensitive technology to Iran or related entities.
- Trade Agreement Exception
- The representation is not required if the acquisition is covered by trade agreements and all products/materials are designated country end products/materials.
Responsibilities
- Contracting Officers: Must verify offerors are not excluded in SAM for exporting sensitive technology to Iran and obtain required representations.
- Contractors/Offerors: Must certify compliance regarding exports to Iran unless the trade agreement exception applies.
- Agencies: Must ensure compliance with statutory prohibitions and maintain oversight of contract eligibility.
Practical Implications
- This regulation ensures U.S. government funds do not support entities aiding Iran's sensitive technology sector.
- Contractors must be diligent in their export practices and truthful in their certifications.
- Failure to comply can result in exclusion from federal contracting and legal penalties.
(a) The head of an executive agency may not enter into or extend a contract for the procurement of goods or services with a person that exports certain sensitive technology to Iran, as determined by the President, and has an active exclusion in the System for Award Management at http://www.sam.gov" target="_blank">http://www.sam.gov (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section8515&num=0&edition=prelim" target="_blank">22 U.S.C. 8515).
(b) Each offeror must represent that it does not export any sensitive technology to the government of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of, the government of Iran.
(c) Exception for trade agreements. The representation requirement of paragraph (b) of this subsection does not apply if the acquisition is subject to trade agreements and the offeror certifies that all the offered products are designated country end products or designated country construction material (see subpart 25.4).