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FAR and DFARS › DFARS Part 252: Solicitation Provisions and Contract Clauses › Subpart 252.2

DFARS 252.209-7004 Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism.

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 clause generally bars a contractor from awarding subcontracts above a certain dollar threshold to firms listed in SAM Exclusions as ineligible for Defense contracts because they are owned or controlled by a state-sponsor-of-terrorism government. If the contractor wants to use such a firm anyway, a corporate officer or designee must first notify the Contracting Officer in writing with the proposed subcontractor's name and the compelling reasons.

Applies to: Contractors awarding subcontracts under Defense contracts containing this clause

What it requires

  • Do not enter into a subcontract above the FAR 9.405-2(b) threshold with a firm listed in SAM Exclusions as ineligible because it is owned or controlled by a state-sponsor-of-terrorism government, unless the Government determines a compelling reason exists.
  • Before entering into such a subcontract, have a corporate officer or designee notify the Contracting Officer in writing, including the proposed subcontractor's name and the compelling reason(s).

Key terms: SAM Exclusions · state sponsor of terrorism · subcontract · compelling reason · threshold specified in Federal Acquisition Regulation 9.405-2(b)

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

The text

As prescribed in 209.409, use the following clause:

Subcontracting With Firms That Are Owned or Controlled by the Government of a Country That Is a State Sponsor of Terrorism (MAY 2019)

(a) Unless the Government determines that there is a compelling reason to do so, the Contractor shall not enter into any subcontract in excess of the threshold specified in Federal Acquisition Regulation 9.405-2(b) on the date of subcontract award with a firm, or a subsidiary of a firm, that is identified in the Exclusions section of the System for Award Management System (SAM Exclusions) as being ineligible for the award of Defense contracts or subcontracts because it is owned or controlled by the government of a country that is a state sponsor of terrorism.

(b) A corporate officer or a designee of the Contractor shall notify the Contracting Officer, in writing, before entering into a subcontract with a party that is identified, in SAM Exclusions, as being ineligible for the award of Defense contracts or subcontracts because it is owned or controlled by the government of a country that is a state sponsor of terrorism. The notice must include the name of the proposed subcontractor and the compelling reason(s) for doing business with the subcontractor notwithstanding its inclusion in SAM Exclusions.

(End of clause)

Sections it refers to

Sections that refer to it

← 252.209-7003 [Reserved] · 252.209-7005 [Reserved] →

Rule changes for DFARS Part 252

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

DFARS 252.209-7004 Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism · SpendQuery