Solicitation provision and contract clause
Contracting officers must always include the specified provision and clause to prohibit contracting with inverted domestic corporations in all solicitations and contracts for products or services, including construction.
Overview
FAR 9.108-5 mandates that contracting officers include specific provisions and clauses in all solicitations and contracts for products or services, including construction, to enforce the prohibition on contracting with inverted domestic corporations. This ensures that offerors represent their status regarding inverted domestic corporations and that awarded contracts contain enforceable language prohibiting such relationships.
Key Rules
- Provision Inclusion in Solicitations
- Contracting officers must include FAR 52.209-2 in every solicitation for products or services (including construction), requiring offerors to represent their status regarding inverted domestic corporations.
- Clause Inclusion in Solicitations and Contracts
- Contracting officers must include FAR 52.209-10 in every solicitation and contract for products or services (including construction), prohibiting contracting with inverted domestic corporations.
Responsibilities
- Contracting Officers: Must ensure the correct provision and clause are included in all relevant solicitations and contracts.
- Contractors: Must accurately represent their status regarding inverted domestic corporations and comply with the prohibition if awarded a contract.
- Agencies: Must oversee compliance with these requirements and ensure enforcement of the prohibition.
Practical Implications
- This section exists to prevent federal funds from being awarded to inverted domestic corporations, which are often established offshore for tax avoidance.
- It impacts all federal acquisitions of products and services, requiring careful attention to solicitation and contract language.
- Common pitfalls include failing to include the required provision or clause, which can lead to compliance violations and contract challenges.