52.240-1
Prohibition on Unmanned Aircraft Systems Manufactured or Assembled by American Security Drone Act-Covered Foreign Entities
Contractors are strictly prohibited from delivering, operating, or using federal funds for drones from certain foreign entities, and must check SAM.gov and flow down these requirements to all subcontracts.
Overview
FAR 52.240-1 prohibits contractors from delivering, operating, or using federal funds to procure or operate unmanned aircraft systems (UAS) manufactured or assembled by entities identified as American Security Drone Act-covered foreign entities. The regulation requires contractors to check the Federal Acquisition Security Council (FASC) list in SAM.gov before proposing or using any UAS in contract performance. The prohibition on operation and use of federal funds for these UAS takes effect on December 22, 2025. Exemptions, exceptions, or waivers may apply if expressly stated in the contract. Contractors must also flow down this clause to all subcontracts, including those for commercial products or services.
Key Rules
- Prohibition on Delivery and Operation
- Contractors cannot deliver, operate, or use federal funds for FASC-prohibited UAS from covered foreign entities, with operation and funding prohibitions effective December 22, 2025.
- SAM.gov List Requirement
- Contractors must search SAM.gov for the FASC-maintained list before proposing or using any UAS.
- Exemptions and Waivers
- Prohibitions do not apply if an exemption, exception, or waiver is documented in the contract.
- Subcontract Flowdown
- The clause must be included in all subcontracts and contractual instruments, including those for commercial items.
Responsibilities
- Contracting Officers: Ensure inclusion of the clause in contracts and verify any exemptions or waivers.
- Contractors: Check SAM.gov for covered entities, comply with prohibitions, document any exemptions, and flow down the clause to all subcontracts.
- Agencies: Maintain and update the FASC list, grant exemptions/waivers as appropriate, and oversee compliance.
Practical Implications
- This clause aims to protect national security by restricting the use of drones from certain foreign entities.
- Contractors must implement due diligence processes to avoid prohibited UAS and ensure compliance throughout their supply chain.
- Failure to comply can result in contract violations, making awareness and proper documentation critical.