40.201
Definitions
For any drone-related procurement, contractors must check whether the unmanned aircraft system was manufactured or assembled by a FASC-listed foreign entity in SAM, because that status can trigger a federal procurement prohibition.
Overview
- FAR 40.201 provides the core definitions used in Subpart 40.2, which addresses security prohibitions and exclusions related to certain unmanned aircraft systems.
- Its purpose is to establish the exact meaning of key terms so contracting professionals can determine whether a drone, its manufacturer, or related components fall within a federal procurement prohibition.
Key Rules
- American Security Drone Act-covered foreign entity
- This is an entity listed by the Federal Acquisition Security Council (FASC) and published in the System for Award Management (SAM). Contractors and contracting officers must rely on that official list when assessing risk and eligibility.
- FASC-prohibited unmanned aircraft system
- This means an unmanned aircraft system manufactured or assembled by an American Security Drone Act-covered foreign entity. The definition ties the prohibition directly to the source of manufacture or assembly.
- Unmanned aircraft / Unmanned aircraft system
- The section adopts statutory definitions from 49 U.S.C. 44801, clarifying that the rule covers both the aircraft itself and the associated elements, such as communication links and control components.
Responsibilities
- Contracting Officers: use the SAM-published FASC list to identify covered foreign entities and apply Subpart 40.2 correctly.
- Contractors: verify whether offered unmanned aircraft systems are manufactured or assembled by listed entities.
- Agencies: maintain compliance with governmentwide security prohibitions by using the standardized definitions.
Practical Implications
- This section exists to create consistent screening criteria for drone-related acquisitions.
- It affects market research, supply-chain reviews, and proposal evaluations involving unmanned aircraft systems.
- A common pitfall is checking only the aircraft platform and not the full unmanned aircraft system or its manufacturing/assembly source.