Overview
FAR Subpart 40.2 implements security-based prohibitions on federal procurement, specifically focusing on the American Security Drone Act of 2023. It prohibits executive agencies from procuring or operating unmanned aircraft systems (UAS) manufactured or assembled by certain foreign entities deemed a security risk by the Federal Acquisition Security Council (FASC).
Key Rules
- The Prohibition: Agencies cannot procure any UAS (drone) manufactured or assembled by an "American Security Drone Act-covered foreign entity" as listed on SAM.gov.
- Expanding Restrictions (Dec 2025): Starting December 22, 2025, the prohibition expands to include procuring services that operate these drones and the use of federal funds to operate them.
- Universal Applicability: These rules apply to all acquisitions, including those below the micro-purchase threshold (e.g., credit card purchases) and contracts for commercial products or services.
- Expiration: The authorities and prohibitions under this subpart are currently set to expire on December 22, 2028.
- Exemptions and Exceptions: Specific exemptions exist for high-level departments (DoD, DHS, DOJ, State) for national security, research, or counterterrorism, as well as exceptions for wildfire management, search and rescue, and intelligence activities.
Responsibilities
- Contracting Officers (CO):
- Must insert FAR clause 52.240-1 in all solicitations and contracts.
- Must document the contract file regarding any applicable exemptions, exceptions, or waivers.
- Must review proposals (in coordination with the program office) to ensure prohibited drones are not being delivered or operated.
- Program Managers / Requiring Activities:
- Responsible for identifying and scoping any necessary exemptions or waivers.
- Must assist the CO in assessing whether a vendor’s proposed UAS is FASC-prohibited.
- Federal Acquisition Security Council (FASC):
- Maintains and publishes the list of "covered foreign entities" on SAM.gov.
- Agency Heads:
- Authorized to grant case-by-case waivers, subject to OMB approval and Congressional notification.
Practical Implications
- Supply Chain Vigilance: Contractors must strictly vet their UAS supply chains. Since the prohibition applies to "manufactured or assembled" components, a drone built in the U.S. using significant components from a covered foreign entity may still be at risk of non-compliance.
- No De Minimis Exception: Because the rule applies below the micro-purchase threshold, government employees cannot use purchase cards (GPC) to buy "off-the-shelf" hobbyist drones from prohibited brands (e.g., certain popular foreign manufacturers) for any government purpose.
- Service Contract Shift: Companies providing data collection, mapping, or surveillance services to the government must ensure their fleet is compliant before the December 2025 deadline, as the government will be barred from paying for services that utilize prohibited UAS technology.
- SAM.gov Monitoring: Procurement teams must treat the FASC-covered entity list on SAM.gov as a "live" document, similar to the Excluded Parties List, as entities may be added at any time.