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52.203-6Restrictions on Subcontractor Sales to the Government.

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.203-6 — Restrictions on Subcontractor Sales to the Government.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.

Official Regulation Text

52.203-6 Restrictions on Subcontractor Sales to the Government. As prescribed in 3.503-2, insert the following clause: Restrictions on Subcontractor Sales to the Government (JUN 2020) (a) Except as provided in (b) below, the Contractor shall not enter into any agreement with an actual or prospective subcontractor, nor otherwise act in any manner, which has or may have the effect of restricting sales by such subcontractors directly to the Government of any item or process (including computer software) made or furnished by the subcontractor under this contract or under any follow-on production contract. (b) The prohibition in (a) above does not preclude the Contractor from asserting rights that are otherwise authorized by law or regulation. (c) The Contractor agrees to incorporate the substance of this clause, including this paragraph (c), in all subcontracts under this contract which exceed the simplified acquisition threshold, as defined in Federal Acquisition Regulation 2.101 on the date of subcontract award. (End of clause) Alternate I (NOV 2021). As prescribed in 3.503-2, substitute the following paragraph in place of paragraph (b) of the basic clause: (b) The prohibition in paragraph (a) of this clause does not preclude the Contractor from asserting rights that are otherwise authorized by law or regulation. For acquisitions of commercial products or commercial services, the prohibition in paragraph (a) applies only to the extent that any agreement restricting sales by subcontractors results in the Federal Government being treated differently from any other prospective purchaser for the sale of the commercial product(s) and commercial service(s). [50 FR 35479, Aug. 30, 1985, as amended at 60 FR 34761, July 3, 1995; 60 FR 48251, Sept. 18, 1995; 61 FR 39198, July 26, 1996; 71 FR 57369, Sept. 28, 2006; 85 FR 27091, May 6, 2020; 86 FR 61031, Nov. 4, 2021]

Source: eCFR, 48 CFR 52.203-6 (https://www.ecfr.gov/current/title-48/section-52.203-6)

Compliance Checklist

  • As prescribed in 3.503-2, insert the following clause: Restrictions on Subcontractor Sales to the Government (JUN 2020) (a) Except as provided in (b) below, the Contractor shall not enter into any agreement with an actual or prospective subcontractor, nor otherwise act in any manner, which has or may have the effect of restricting sales by such subcontractors directly to the Government of any item or process (including computer software) made or furnished by the subcontractor under this contract or under any follow-on production contract.

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

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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.