DoD Interim Rule on Procurement & Sensitive Technology Exports to Iran
The Department of Defense1 has issued an interim final rule, effective November 2, 2011, that amends the Federal Acquisition Regulation (FAR) to expand on the requirements of section 106 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA) by adding a “representation” requirement.
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Comments are due by January 3, 2012.
(DoD has concurrently issued a final rule which adopts a September 2010 interim final rule (with minor changes) that codified Section 106. See ITT’s Online Archives 11110322 for summary of the final rule.)
Federal Contracts with Persons Who Export Sensitive Technology to Iran Already Prohibited
Section 106, which took effect upon enactment of the CISADA on July 1, 2010, imposes a procurement prohibition relating to federal government contracts with persons that export certain sensitive technology to Iran.
Now Offerer Must Also “Represent” It Does not Export this Sensitive Technology
The interim final rule adds a requirement that the offeror must also “represent” that it does not export any sensitive technology to the government of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of, the government of Iran.
Definition of sensitive technology. Sensitive technology means hardware, software, telecommunications equipment, or any other technology that is to be used specifically to: (i) restrict the free flow of unbiased information in Iran; or (ii) disrupt, monitor, or otherwise restrict speech of the people of Iran. (It does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act (50 USC 1702(b)(3)).)
Exception for trade agreements. The interim rule provides an exception to the representation requirement for offerors that are providing eligible products in acquisitions that are subject to trade agreements.
(See interim final rule for other minor changes made by the interim final rule such as the addition of an email address in the section that defines sensitive technology so that offerors can refer questions on sensitive technology to the Department of State, prior to making the representation; etc.)
1DoD, the General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) all issued the interim final rule.
2CISADA, which became Public Law 111-195 on July 1, 2010, amended the Iran Sanctions Act (ISA) to expand the sanctions imposed against Iran. (See ITT’s Online Archives 10063049, 10092013 and 11032913 for summaries of the major trade-related provisions of the CISADA.)
DoD contact -- Cecelia David (202) 219-0202
(FR Pub 11/02/11, FAC 2005--54; FAR Case 2010--018; Item V; D/N 2010--0018, Sequence 1)