Prohibition on Contracting With Entities Engaging in Certain Activities or Transactions Relating to Iran—Representation and Certifications
Offerors must certify they do not engage in prohibited activities or transactions with Iran or its affiliates as a condition of eligibility for U.S. government contracts, unless a specific trade agreement exception applies.
Overview
FAR 52.225-25 requires offerors to represent and certify that neither they nor any person they own or control are engaged in certain prohibited activities or transactions relating to Iran. This provision is aimed at ensuring compliance with U.S. sanctions laws, specifically those targeting the Iranian government, its affiliates, and activities involving sensitive technology or petroleum resources. Offerors must make these representations and certifications as part of their proposal submission, unless an exception applies due to trade agreements or a waiver has been granted. The regulation defines key terms such as "person" and "sensitive technology" and provides a process for offerors to seek clarification from the Department of State regarding sensitive technology. The provision also references the Specially Designated Nationals (SDN) list for identifying restricted parties and outlines exceptions for solicitations covered by certain trade agreements.
Key Rules
- Representation and Certification Requirement
- Offerors must certify they do not export sensitive technology to Iran, engage in sanctionable activities under the Iran Sanctions Act, or knowingly transact with Iran's Revolutionary Guard Corps above a specified threshold.
- Definitions and Clarifications
- The provision defines "person" and "sensitive technology" for clarity and compliance purposes.
- Exception for Trade Agreements
- If the solicitation is covered by certain trade agreements and all products are designated country end products, the representation and certification requirements do not apply.
- Questions on Sensitive Technology
- Offerors may email the Department of State for clarification on sensitive technology issues.
Responsibilities
- Contracting Officers: Must include this provision in applicable solicitations and verify offeror compliance.
- Contractors/Offerors: Must accurately complete representations and certifications, and ensure ongoing compliance with the requirements.
- Agencies: Oversee compliance and process any waivers or exceptions as allowed under the FAR.
Practical Implications
- This provision is designed to prevent U.S. government contracts from benefiting entities engaged in prohibited activities with Iran, supporting U.S. foreign policy and national security objectives.
- Contractors must conduct due diligence to ensure they and their affiliates are not engaged in restricted activities, and must be aware of the SDN list and relevant thresholds.
- Failure to comply can result in ineligibility for award, contract termination, or legal penalties.