52.240-1
Prohibition on Unmanned Aircraft Systems Manufactured or Assembled by American Security Drone Act-Covered Foreign Entities
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.