Low RiskFARGeneral

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

Researched by the BidStride Research Team

What This Clause Requires

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

52.209-2 Prohibition on Contracting With Inverted Domestic Corporations—Representation. 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) [76 FR 31414, May 31, 2011, as amended at 79 FR 74557, Dec. 15, 2014; 80 FR 38307, July 2, 2015]

Source: eCFR, 48 CFR 52.209-2 (https://www.ecfr.gov/current/title-48/section-52.209-2)

Compliance Checklist

    Flow-Down to Subcontractors

    No flow-down required

    This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

    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.