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FAR and DFARS › DFARS Part 225: Foreign Acquisition › Subpart 225.7

DFARS 225.771-2 Prohibition.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section prohibits the contracting officer from awarding a contract of $200,000 or more to a firm if a foreign government that is a state sponsor of terrorism owns or controls a significant interest in that firm, its subsidiary, or a parent firm. It also points to separate restrictions on subcontracting with such firms. This matters because a contractor may be ineligible for award if it has certain ownership or control ties to a state sponsor of terrorism.

Applies to: Contracts of $200,000 or more awarded to firms with ownership or control ties to a state sponsor of terrorism

Key terms: state sponsor of terrorism · significant interest · subsidiary · contracting officer · subcontracting

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The contracting officer shall not award a contract of $200,000 or more to a firm when a foreign government that is a state sponsor of terrorism owns or controls, either directly or indirectly, a significant interest in—

(i) The firm;

(ii) A subsidiary of the firm; or

(iii) Any other firm that owns or controls the firm.

(b) For restrictions on subcontracting with a firm, or a subsidiary of a firm, that is identified by the Secretary of Defense as being owned or controlled by the government of a country that is a state sponsor of terrorism, see 209.405-2.

Sections it refers to

Sections that refer to it

← 225.771-1 Definition. · 225.771-3 Notification. →

Rule changes for DFARS Part 225

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 225.771-2 Prohibition · SpendQuery