48 CFR § 225.771-2 - 225.771-2 Prohibition.

---
identifier: "/us/cfr/t48/s225.771-2"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 225.771-2 - 225.771-2   Prohibition."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "225.771-2"
section_name: "225.771-2   Prohibition."
chapter_number: 2
chapter_name: "DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE"
subchapter_number: "D"
subchapter_name: "SOCIOECONOMIC PROGRAMS"
part_number: "225"
part_name: "FOREIGN ACQUISITION"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1303 and 48 CFR chapter 1."
regulatory_source: "56 FR 36367, July 31, 1991, unless otherwise noted."
cfr_part: "225"
---


# 225.771-2 225.771-2   Prohibition.

(a) The contracting officer shall not award a contract of $200,000 or more to a firm when a foreign government that is a state sponsor of terrorism owns or controls, either directly or indirectly, a significant interest in—

(i) The firm;

(ii) A subsidiary of the firm; or

(iii) Any other firm that owns or controls the firm.

(b) For restrictions on subcontracting with a firm, or a subsidiary of a firm, that is identified by the Secretary of Defense as being owned or controlled by the government of a country that is a state sponsor of terrorism, see 209.405-2.

[79 FR 73489, Dec. 11, 2014, as amended at 90 FR 41486, Aug. 25, 2025]