252.225-7056 — Prohibition Regarding Business Operations with the Maduro Regime.
Researched by the BidStride Research Team
What This Clause Requires
DFARS 252.225-7056 — Prohibition Regarding Business Operations with the Maduro Regime.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.
Official Regulation Text
252.225-7056 Prohibition Regarding Business Operations with the Maduro Regime. As prescribed in 225.7020-5(b), use the following clause: Prohibition Regarding Business Operations With the Maduro Regime (JAN 2023) (a) Definitions. As used in this clause— Agency or instrumentality of the government of Venezuela means an agency or instrumentality of a foreign state as defined in 28 U.S.C. 1603(b), with each reference in section 1603(b) to a foreign state deemed to be a reference to Venezuela. Business operations means engaging in commerce in any form, including acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce. Government of Venezuela means the government of any political subdivision of Venezuela, and any agency or instrumentality of the government of Venezuela. Person means— (1) A natural person, corporation, company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group; (2) Any governmental entity or instrumentality of a government, including a multilateral development institution (as defined in section 1701(c)(3) of the International Financial Institutions Act (22 U.S.C. 262r(c)(3)); and (3) Any successor, subunit, parent entity, or subsidiary of, or any entity under common ownership or control with, any entity described in paragraph (1) or (2) of this definition. (b) Prohibition. In accordance with section 890 of the National Defense Authorization Act for Fiscal Year 2020 (Pub. L. 116-92), DoD is prohibited from entering into a contract for the procurement of products or services with any person that has business operations with an authority of the government of Venezuela that is not recognized as the legitimate government of Venezuela by the U.S. Government, unless the person has a valid license to operate in Venezuela issued by the Offic
Compliance Checklist
- (c) The Contractor shall— (1) Not have any business operations with an authority of the Maduro regime or the government of Venezuela that is not recognized as the legitimate government of Venezuela by the U.S.
- The Contractor shall insert the substance of this clause, including this paragraph (d), in all subcontracts, including subcontracts for the acquisition of commercial products.
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 252.225-7056 (Prohibition Regarding Business Operations with the Maduro Regime.) is a Defense Federal Acquisition Regulation Supplement clause applicable to Department of Defense contracts.
DFARS 252.225-7056 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.