40.202-3
Prohibition
Executive agencies are strictly prohibited from procuring, renewing, or funding FASC-prohibited unmanned aircraft systems or related services, with expanded restrictions effective December 22, 2025, unless an exemption, exception, or waiver applies.
Overview
FAR 40.202-3 establishes a strict prohibition on executive agencies from procuring, extending, or renewing contracts for unmanned aircraft systems (UAS) that are identified as FASC-prohibited, unless a specific exemption, exception, or waiver applies. This prohibition also extends to the procurement of services for the operation of such UAS and the use of federal funds for their procurement or operation, with certain provisions taking effect on or after December 22, 2025. The regulation is rooted in statutory requirements to prevent the use of UAS manufactured or assembled by entities covered under the American Security Drone Act, aiming to mitigate security risks associated with foreign-sourced drone technology.
Key Rules
- Prohibition on Procuring FASC-Prohibited UAS
- Agencies cannot procure, extend, or renew contracts for FASC-prohibited unmanned aircraft systems unless an exemption, exception, or waiver applies.
- Prohibition on Procuring Services for Operation (Effective December 22, 2025)
- After this date, agencies are also barred from procuring services for the operation of FASC-prohibited UAS, including contract extensions or renewals.
- Prohibition on Use of Federal Funds (Effective December 22, 2025)
- Federal funds cannot be used for the procurement or operation of FASC-prohibited UAS after this date.
Responsibilities
- Contracting Officers: Must ensure no contracts are awarded, extended, or renewed for FASC-prohibited UAS or related services unless a valid exemption, exception, or waiver is in place.
- Contractors: Must not offer or provide FASC-prohibited UAS or related services to executive agencies.
- Agencies: Must monitor compliance and ensure federal funds are not used in violation of these prohibitions.
Practical Implications
- This section exists to protect national security by restricting the use of potentially compromised UAS technology.
- Contractors must carefully vet their supply chains and service offerings to avoid prohibited UAS.
- Common pitfalls include failing to recognize contract renewals/extensions as covered actions and missing the effective date for service and funding prohibitions.