25.703-4 Waiver
Source: FAR 25.703-4 on acquisition.gov
Waiver requests from Iran-related contracting prohibitions require thorough justification, agency head clearance, and detailed documentation, and must be submitted to the OFPP for review and approval.
Overview
FAR 25.703-4 outlines the process and requirements for requesting a waiver from the prohibitions on contracting with entities that engage in certain activities or transactions relating to Iran, as specified in FAR 25.703-2 and 25.703-3. Waivers may be sought by agencies or contractors but must be submitted to the Office of Federal Procurement Policy (OFPP) with sufficient time for review. Waivers can be individual or class-based, but class waivers are only permitted when no alternative sources exist and it is in the national interest. All waiver requests must be reviewed and cleared by the agency head before submission. The regulation details the specific information and justification required in a waiver request, including agency and offeror details, contract information, market research, national interest or security rationale, past performance, and connections to other firms involved in restricted activities. Waivers are not indefinite and may be cancelled if warranted.
Key Rules
- Waiver Submission
- Requests for waivers must be submitted to the OFPP and cleared by the agency head.
- Types of Waivers
- Waivers may be individual or class-based; class waivers require a finding of no alternative sources and national interest.
- Required Information
- Waiver requests must include detailed agency and offeror information, contract details, justification, market research, past performance, and connections to restricted activities.
- National Interest/Security Justification
- Specific rationale must be provided if the offeror is involved in activities or transactions with Iran or its affiliates, addressing why a waiver is in the national interest or essential to national security.
- Documentation and Integrity
- Supporting documentation on past performance and integrity, as well as relationships with other firms engaged in restricted activities, must be included.
Responsibilities
- Contracting Officers: Ensure waiver requests are complete, justified, and cleared by the agency head before submission to OFPP.
- Contractors: Provide all required information and documentation if seeking a waiver.
- Agencies: Review, clear, and submit waiver requests; monitor and potentially cancel waivers if warranted.
Practical Implications
- This section exists to provide a controlled process for exceptions to the Iran-related contracting prohibitions, ensuring national interest or security is prioritized.
- It impacts daily contracting by requiring thorough documentation and high-level review for any waiver requests.
- Common pitfalls include incomplete submissions, lack of proper justification, or failure to clear requests through the agency head.
(a) An agency or contractor seeking a waiver of the requirements of 25.703-2 or 25.703-3, consistent with section 6(b)(5) of the Iran Sanctions Act or https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section8551&num=0&edition=prelim" target="_blank">22 U.S.C. 8551(b), respectively, and the Presidential Memorandum of September 23, 2010 (75 FR 67025), shall submit the request to the Office of Federal Procurement Policy, allowing sufficient time for review and approval.
(b) Agencies may request a waiver on an individual or class basis; however, waivers are not indefinite and can be cancelled, if warranted.
(1) A class waiver may be requested only when the class of supplies or equipment is not available from any other source and it is in the national interest.
(2) Prior to submitting the waiver request, the request must be reviewed and cleared by the agency head.
(c) In general, all waiver requests should include the following information:
(1) Agency name, complete mailing address, and point of contact name, telephone number, and e-mail address.
(2) Offeror’s name, complete mailing address, and point of contact name, telephone number, and e-mail address.
(3) Description/nature of product or service.
(4) The total cost and length of the contract.
(5) Justification, with market research demonstrating that no other offeror can provide the product or service and stating why the product or service must be procured from this offeror.
(i) If the offeror exports 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, provide rationale why it is in the national interest for the President to waive the prohibition on contracting with this offeror, as required by https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section8551&num=0&edition=prelim" target="_blank">22 U.S.C. 8551(b).
(ii) If the offeror conducts activities for which sanctions may be imposed under section 5 of the Iran Sanctions Act or engages in any transaction that exceeds the threshold at 25.703-2(a)(2) with Iran’s Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act, provide rationale why it is essential to the national security interests of the United States for the President to waive the prohibition on contracting with this offeror, as required by section 6(b)(5) of the Iran Sanctions Act.
(6) Documentation regarding the offeror’s past performance and integrity (see the Contractor Performance Assessment Reporting System (CPARS) and the Federal Awardee Performance Information and Integrity System at https://www.cpars.gov" target="_blank">https://www.cpars.gov, and any other relevant information).
(7) Information regarding the offeror’s relationship or connection with other firms that-
(i) Export 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;
(ii) Conduct activities for which sanctions may be imposed under section 5 of the Iran Sanctions Act; or
(iii) Conduct any transaction that exceeds the threshold at 25.703-2(a)(2) with Iran’s Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act.
(8) Describe-
(i) The sensitive technology and the entity or individual to which it was exported (i.e., the government of Iran or an entity or individual owned or controlled by, or acting on behalf or at the direction of, the government of Iran);
(ii) The activities in which the offeror is engaged for which sanctions may be imposed under section 5 of the Iran Sanctions Act; or
(iii) The transactions that exceed the threshold at 25.703-2(a)(2) with Iran’s Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act.