Waiver
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.