52.240-1 Prohibition on Unmanned Aircraft Systems Manufactured or Assembled by American Security Drone Act-Covered Foreign Entities
Source: FAR 52.240-1 on acquisition.gov
If your contract involves drones, check SAM before proposing or using any UAS and do not deliver, operate, or buy with Federal funds any system made or assembled by a FASC-listed foreign entity unless the contract expressly grants an exemption, exception, or waiver.
Overview
- FAR 52.240-1 prohibits contractors from delivering, operating, or using Federal funds to procure or operate certain unmanned aircraft systems (UAS) tied to foreign entities identified under the American Security Drone Act framework.
- Its purpose is to keep covered foreign-manufactured or foreign-assembled drone systems out of Federal supply chains and contract performance unless the contract expressly provides an exemption, exception, or waiver.
Key Rules
- Definitions and covered systems
- The clause defines an American Security Drone Act-covered foreign entity by reference to the Federal Acquisition Security Council (FASC) list published in SAM.gov. A FASC-prohibited unmanned aircraft system is any UAS manufactured or assembled by one of those listed entities.
- Core prohibitions
- Contractors may not deliver any FASC-prohibited UAS under the contract. In addition, on or after December 22, 2025, contractors may not operate such a UAS in contract performance or use Federal funds to procure or operate one.
- Required screening and exceptions
- Before proposing or using any UAS in performance, contractors must search SAM.gov for the FASC-maintained list. Any use tied to a prohibited UAS must be supported by a contract-stated exemption, exception, or waiver.
- Flowdown requirement
- The clause must be flowed down to all subcontracts and other contractual instruments, including those for commercial products and commercial services.
Responsibilities
- Contracting Officers: include the clause when prescribed and identify any approved exemption, exception, or waiver in the contract.
- Contractors: screen UAS against the SAM FASC list, avoid prohibited delivery/use, and comply with the December 22, 2025 restrictions.
- Agencies: maintain oversight of approved exemptions, exceptions, and waivers consistent with statute.
Practical Implications
- This clause requires contractors to build a UAS supply-chain review into proposal preparation, purchasing, and performance management.
- A common pitfall is assuming only delivered drones are covered; the clause also reaches operational use and Federal-fund expenditures beginning December 22, 2025.
- Contractors should document SAM checks, review subcontractor UAS use, and verify whether any contract language expressly authorizes an exception before acquiring or deploying a drone system.
As prescribed in 40.202-8 , insert the following clause:
Prohibition on Unmanned Aircraft Systems Manufactured or Assembled by American Security Drone Act-Covered Foreign Entities (Nov 2024)
(a) Definitions. As used in this clause—
American Security Drone Act-covered foreign entity means an entity included on a list developed and maintained by the Federal Acquisition Security Council (FASC) and published in the System for Award Management (SAM) at https://www.sam.gov (section 1822 of the National Defense Authorization Act for Fiscal Year 2024, Pub. L. 118-31, http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section3901&num=0&edition=prelim" target="_blank">41 U.S.C. 3901 note prec.).
FASC-prohibited unmanned aircraft system means an unmanned aircraft system manufactured or assembled by an American Security Drone Act-covered foreign entity.
Unmanned aircraft means an aircraft that is operated without the possibility of direct human intervention from within or on the aircraft (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section44801(11)&num=0&edition=prelim" target="_blank">49 U.S.C. 44801(11)).
Unmanned aircraft system means an unmanned aircraft and associated elements (including communication links and the components that control the unmanned aircraft) that are required for the operator to operate safely and efficiently in the national airspace system (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section44801(12)&num=0&edition=prelim" target="_blank">49 U.S.C. 44801(12)).
(b) Prohibition. The Contractor is prohibited from—
(1) Delivering any FASC-prohibited unmanned aircraft system, which includes unmanned aircraft (i.e., drones) and associated elements (sections 1823 and 1826 of Pub. L. 118-31, http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section3901&num=0&edition=prelim" target="_blank">41 U.S.C. 3901 note prec.);
(2) On or after December 22, 2025, operating a FASC-prohibited unmanned aircraft system in the performance of the contract (section 1824 of Pub. L. 118-31, http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section3901&num=0&edition=prelim" target="_blank">41 U.S.C. 3901 note prec.); and
(3) On or after December 22, 2025, using Federal funds for the procurement or operation of a FASC-prohibited unmanned aircraft system (section 1825 of Pub. L. 118-31, http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section3901&num=0&edition=prelim" target="_blank">41 U.S.C. 3901 note prec.).
(c) Procedures. The Contractor shall search SAM at https://www.sam.gov for the FASC-maintained list of American Security Drone Act-covered foreign entities prior to proposing, or using in performance of the contract, any unmanned aircraft system. Additionally, the Contractor shall ensure any effort or expenditure associated with a FASC-prohibited unmanned aircraft system is consistent with a corresponding exemption, exception, or waiver determination expressly stated in the contract.
(d) Exemptions, exceptions, and waivers. The prohibitions in this clause do not apply where the agency has determined an exemption, exception, or waiver applies and the contract indicates that such a determination has been made. [See sections 1823 through 1825 and 1832 of Public Law 118-31 (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section3901&num=0&edition=prelim" target="_blank">41 U.S.C. 3901 note prec.) for statutory requirements pertaining to exemptions, exceptions, and waivers.].
(e) Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (e), in all subcontracts and other contractual instruments, including subcontracts for the acquisition of commercial products or commercial services.
(End of clause)