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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.209-2 Prohibition on Contracting With Inverted Domestic Corporations—Representation.

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 provision prohibits government agencies from using appropriated funds to contract with an inverted domestic corporation or its subsidiary, unless an exception or waiver applies. It requires offerors to represent whether they are such a corporation or a subsidiary of one. This matters because contractors must accurately represent their status to be eligible for award.

Applies to: Offerors responding to solicitations that include this provision

What it requires

  • Represent whether it is an inverted domestic corporation
  • Represent whether it is a subsidiary of an inverted domestic corporation

Key terms: inverted domestic corporation · subsidiary · representation · appropriated funds · waiver

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

The text

As prescribed in 9.108-5(a), insert the following provision:

Prohibition on Contracting With Inverted Domestic Corporations—Representation (NOV 2015)

(a) Definitions. Inverted domestic corporation and subsidiary have the meaning given in the clause of this contract entitled Prohibition on Contracting with Inverted Domestic Corporations (52.209-10).

(b) Government agencies are not permitted to use appropriated (or otherwise made available) funds for contracts with either an inverted domestic corporation, or a subsidiary of an inverted domestic corporation, unless the exception at 9.108-2(b) applies or the requirement is waived in accordance with the procedures at 9.108-4.

(c) Representation. The Offeror represents that—

(1) It □ is, □ is not an inverted domestic corporation; and

(2) It □ is, □ is not a subsidiary of an inverted domestic corporation.

(End of provision)

Sections it refers to

  • 9.108-5 Solicitation provision and contract clause.
  • 52.209-10 Prohibition on Contracting With Inverted Domestic Corporations.
  • 9.108-2 Prohibition.
  • 9.108-4 Waiver.

Sections that refer to it

  • 4.1202 Solicitation provision and contract clause.
  • 9.108-5 Solicitation provision and contract clause.
  • 52.204-8 Annual Representations and Certifications.

← 52.209-1 Qualification Requirements. · 52.209-3 First Article Approval—Contractor Testing. →

Rule changes for FAR Part 52

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

FAR 52.209-2 Prohibition on Contracting With Inverted Domestic Corporations—Representation · SpendQuery