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FAR and DFARS › FAR Part 9: Contractor Qualifications › Subpart 9.1

FAR 9.108-2 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 using appropriated funds for contracts with inverted domestic corporations or their subsidiaries, unless an exception or waiver applies. It matters because contractors must ensure they are not such entities to remain eligible for federal contracts.

Applies to: Contracts with inverted domestic corporations or their subsidiaries

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

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

The text

(a) Section 745 of Division D of the Consolidated Appropriations Act, 2008 (Pub. L. 110-161) and its successor provisions in subsequent appropriations acts (and as extended in continuing resolutions) prohibit, on a Governmentwide basis, the use of appropriated (or otherwise made available) funds for contracts with either an inverted domestic corporation, or a subsidiary of such a corporation, except as provided in paragraph (b) of this section and in 9.108-4 Waiver.

(b)(1) Section 745 and its successor provisions include the following exception: This section shall not apply to any Federal Government contract entered into before the date of the enactment of this Act, or to any task order issued pursuant to such contract.

(2) To ensure appropriate application of the prohibition and this exception, contracting officers should consult with legal counsel if, during the performance of a contract, a contractor becomes an inverted domestic corporation or a subsidiary of one.

Sections it refers to

Sections that refer to it

  • 9.108-4 Waiver.
  • 52.209-2 Prohibition on Contracting With Inverted Domestic Corporations—Representation.
  • 52.209-10 Prohibition on Contracting With Inverted Domestic Corporations.
  • 52.212-3 Offeror Representations and Certifications—Commercial Products and Commercial Services.

← 9.108-1 Definitions. · 9.108-3 Representation by the offeror. →

Rule changes for FAR Part 9

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

FAR 9.108-2 Prohibition · SpendQuery