52.225-20 Prohibition on Conducting Restricted Business Operations in Sudan-Certification
Source: FAR 52.225-20 on acquisition.gov
Submitting an offer under FAR 52.225-20 is itself a certification that your company does not conduct prohibited restricted business operations in Sudan, so contractors must verify and document any Sudan-related activities before bidding.
Overview
- FAR 52.225-20 is a solicitation provision requiring an offeror to certify, by submitting its offer, that it does not conduct restricted business operations in Sudan.
- Its purpose is to prevent the Federal Government from contracting with entities engaged in certain Sudan-related activities identified by statute, while recognizing limited exceptions.
Key Rules
- Definitions
- The provision defines business operations broadly to include virtually any commercial activity involving equipment, facilities, personnel, products, services, or property.
- Restricted business operations in Sudan include power production, mineral extraction, oil-related activities, and production of military equipment, as defined in the Sudan Accountability and Divestment Act of 2007.
- Exceptions to restricted business operations
- Operations are not considered restricted if they are directly and exclusively with the regional government of southern Sudan, specifically authorized by OFAC or exempt by law, support marginalized populations, peacekeeping or humanitarian organizations, promote health or education only, or have been voluntarily suspended.
- Certification by offer submission
- By merely submitting an offer, the offeror certifies compliance; no separate signature block is described in this text.
Responsibilities
- Contracting Officers: Include the provision when prescribed by FAR 25.1103(d) and rely on the offeror’s certification in the solicitation process.
- Contractors: Review Sudan-related operations and ensure no disqualifying restricted business operations exist before submitting an offer.
- Agencies: Enforce statutory sourcing and responsibility restrictions through solicitation provisions.
Practical Implications
- This provision creates a pre-award eligibility screen tied to sanctions-related policy.
- Contractors with international affiliates or energy, mining, or defense-related activities should carefully document whether any Sudan operations fall within an exception.
- A common pitfall is assuming humanitarian or authorized activities are automatically exempt without maintaining support for that conclusion.
As prescribed at 25.1103(d), insert the following provision:
Prohibition on Conducting Restricted Business Operations in Sudan-Certification (Aug 2009)
(a) Definitions. As used in this provision-
Business operations means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce.
Marginalized populations of Sudan means-
(1) Adversely affected groups in regions authorized to receive assistance under section 8(c) of the Darfur Peace and Accountability Act (Pub. L. 109-344) ( http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title50-section1701&num=0&edition=prelim" target="_blank">50 U.S.C. 1701 note); and
(2) Marginalized areas in Northern Sudan described in section 4(9) of such Act.
Restricted business operations means business operations in Sudan that include power production activities, mineral extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174). Restricted business operations do not include business operations that the person (as that term is defined in Section 2 of the Sudan Accountability and Divestment Act of 2007) conducting the business can demonstrate-
(1) Are conducted under contract directly and exclusively with the regional government of southern Sudan;
(2) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such authorization;
(3) Consist of providing goods or services to marginalized populations of Sudan;
(4) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization;
(5) Consist of providing goods or services that are used only to promote health or education; or
(6) Have been voluntarily suspended.
(b) Certification. By submission of its offer, the offeror certifies that the offeror does not conduct any restricted business operations in Sudan.
(End of provision)