252.209-7004 — Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism.
Researched by the BidStride Research Team
What This Clause Requires
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.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.
Official Regulation Text
252.209-7004 Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism. 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) [79 FR 73490, Dec. 11, 2014, as amended at 80 FR 36905, June 26, 2015; 84 FR 25187, May 31, 2019]
Compliance Checklist
- 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.
Flow-Down to Subcontractors
Flow-down required
This clause must be included in subcontracts with no subcontractors where the subcontractor will perform work covered by this clause. Typically appears in contract Section Section I.
Frequently Asked Questions
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.) is a Defense Federal Acquisition Regulation Supplement clause applicable to Department of Defense contracts.
DFARS 252.209-7004 is typically required in DoD contracts when the contracting officer determines it's applicable. Check Section I of your solicitation.
Flow-down requirements vary. Review the specific clause text for subcontractor applicability provisions.
This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.