Overview
FAR 25.700 establishes the regulatory framework for enforcing economic sanctions and specific legislative prohibitions against contracting with entities associated with sanctioned countries, specifically focusing on OFAC regulations, Sudan, and Iran.
Key Rules
- OFAC Compliance: Implements economic sanctions administered by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) against designated countries, individuals, and entities.
- Sudan Restrictions: Incorporates the requirements of the Sudan Accountability and Divestment Act of 2007, limiting transactions with entities involved in specific prohibited sectors in Sudan.
- Iran Sanctions Framework: Implements a comprehensive set of laws including the Iran Sanctions Act of 1996 and the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA).
- Technology Prohibitions: Explicitly prohibits the government from contracting with entities that export sensitive technologies to Iran.
Practical Implications
- Contracting officers and prime contractors must conduct rigorous due diligence to ensure potential vendors are not on the Specially Designated Nationals (SDN) list or other prohibited lists.
- Contractors are often required to provide specific representations and certifications regarding their business operations in Iran and Sudan to remain eligible for federal awards.