FAR 25.302-3—Applicability.
Plain-English Summary
FAR 25.302-3 explains when the private security function requirements in FAR 25.302 apply to overseas contracts and when they do not. It focuses on contracts performed outside the United States in designated combat operations areas or designated other significant military operations areas, including the special rule that a second designation requires agreement between the Secretary of Defense and the Secretary of State. It also points readers to the official designation lists maintained by DoD, which is important because applicability depends on the current status of the location, not just the contract type. When the section applies, contractors and subcontractors must follow 32 CFR part 159 whether private security functions are the main deliverable or only an incidental part of the work. The section also identifies two exclusions: intelligence community contracts supporting intelligence activities, and temporary non-DoD arrangements for individual indigenous personnel performing private security functions outside a security company, while still requiring compliance with local law. In practice, this section is a threshold rule that determines whether a contractor must meet the detailed private security function requirements in the companion regulation.
Key Rules
Overseas performance trigger
This section applies only to contracts requiring performance outside the United States. The location of performance is the starting point for determining whether the private security function rules are triggered.
Combat operations designation
The rule applies in an area of combat operations only if the Secretary of Defense has designated that area as such. Contractors must verify the current designation before assuming the section applies or does not apply.
Other significant operations
The rule also applies in an area of other significant military operations, but only when the Secretary of Defense and the Secretary of State agree on the designation. This adds an extra approval step and makes current designation status critical.
Official designation sources
The applicable areas are identified on the DoD websites cited in the regulation. Contractors and contracting officers should use those official sources to confirm whether the contract location is covered.
32 CFR part 159 compliance
When the applicability requirements are met, both contractors and subcontractors must comply with 32 CFR part 159. This applies whether private security functions are the primary contract deliverable or only an ancillary part of the work.
Intelligence community exclusion
The requirements of FAR 25.302 do not apply to contracts entered into by elements of the intelligence community in support of intelligence activities. These contracts are carved out entirely from this section.
Temporary indigenous personnel exception
The requirements also do not apply to temporary arrangements on non-DoD contracts for individual indigenous personnel who are not affiliated with a local or expatriate security company. Even though this exception removes FAR 25.302 coverage, the arrangement must still comply with local law.
Responsibilities
Contracting Officer
Determine whether the contract requires performance outside the United States in a designated combat operations area or other significant military operations area. Confirm whether FAR 25.302 applies, ensure the solicitation and contract reflect the correct regulatory coverage, and verify that any applicable designation is current.
Contractor
Check whether the place of performance is in a designated area and, if so, comply with 32 CFR part 159 for all covered private security functions. Ensure subcontractors also comply, and do not assume the rules apply only when security services are the main contract purpose.
Subcontractor
Follow 32 CFR part 159 when performing private security functions under a covered contract. Meet the same compliance obligations as the prime contractor for the work you perform.
Secretary of Defense
Designate areas of combat operations and, for other significant military operations, participate in the designation process. These designations control whether the section applies.
Secretary of State
Agree with the Secretary of Defense on designations of areas of other significant military operations. This agreement is required before the section applies in those areas.
Intelligence Community Element
Use the exclusion for contracts supporting intelligence activities where applicable, and recognize that FAR 25.302 does not govern those contracts.
Non-DoD Contracting Activity Using Indigenous Personnel
If using temporary arrangements with individual indigenous personnel not affiliated with a security company, ensure the arrangement fits the exception and still complies with local law.
Practical Implications
The first practical question is always location: if performance is outside the United States, check whether the area is officially designated before deciding what rules apply.
Contractors cannot avoid the regulation by treating private security work as incidental; the rule applies even when security functions are only ancillary to the main deliverable.
Subcontract flowdown matters because the regulation expressly covers subcontractors, so primes need to manage compliance through their supply chain.
The intelligence community and certain temporary indigenous-personnel arrangements are exceptions, but they are narrow and should be documented carefully to avoid misclassification.
Local law still matters even when FAR 25.302 does not apply, especially for temporary indigenous personnel arrangements, so contractors should not treat the exception as a free pass.
Official Regulatory Text
(a) This section applies to contracts that require performance outside the United States- (1) In an area of combat operations as designated by the Secretary of Defense; or (2) In an area of other significant military operations as designated by the Secretary of Defense, and only upon agreement of the Secretary of Defense and the Secretary of State. (b) These designations can be found at http://www.acq.osd.mil/dpap/pacc/cc/designated_areas_of_other_significant_military_operations.html and http://www.acq.osd.mil/dpap/pacc/cc/designated_areas_of_combat_operations.html . (c) When the applicability requirements of this subsection are met, contractors and subcontractors must comply with 32 CFR part 159 , whether the contract is for the performance of private security functions as a primary deliverable or the provision of private security functions is ancillary to the stated deliverables. (d) The requirements of section 25.302 shall not apply to- (1) Contracts entered into by elements of the intelligence community in support of intelligence activities; or (2) Temporary arrangements entered into on a non-DoD contract for the performance of private security functions by individual indigenous personnel not affiliated with a local or expatriate security company. These temporary arrangements must still comply with local law.