FAR 25.700—Scope of subpart.
Plain-English Summary
FAR 25.700 defines the scope of Subpart 25.7, which implements several U.S. sanctions- and Iran-related restrictions that affect federal contracting. Specifically, it covers: (1) economic sanctions administered by the Office of Foreign Assets Control (OFAC) in the Department of the Treasury that prohibit transactions involving certain countries, entities, and individuals; (2) the Sudan Accountability and Divestment Act of 2007; (3) the Iran Sanctions Act of 1996, as amended by the Iran Freedom Support Act, section 102 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, and Titles II and III of the Iran Threat Reduction and Syria Human Rights Act of 2012; and (4) the prohibition on contracting with entities that export sensitive technologies to Iran. In practice, this section tells contractors and contracting officers that the subpart is not a general ethics rule but a targeted compliance framework tied to sanctions, divestment, and Iran-related restrictions. Its purpose is to prevent the federal procurement system from supporting prohibited transactions, sanctioned parties, or entities engaged in conduct Congress and the Executive Branch have determined to be contrary to U.S. foreign policy and national security interests. For contractors, the practical significance is that eligibility for award and continued performance may depend on screening ownership, affiliates, supply chains, and transaction counterparties against OFAC and statutory restrictions. For contracting officers, it means these issues must be considered during solicitation, responsibility determinations, award, and administration when the subpart applies.
Key Rules
OFAC sanctions are covered
This subpart implements Treasury’s OFAC sanctions programs that prohibit transactions involving certain countries, entities, and individuals. Contractors must avoid doing business in ways that would violate those sanctions, and agencies must ensure procurement actions do not facilitate prohibited transactions.
Sudan divestment law applies
The subpart also implements the Sudan Accountability and Divestment Act of 2007. That means federal procurement restrictions may apply to certain companies with prohibited Sudan-related business activities, depending on the statutory and regulatory conditions in the subpart.
Iran sanctions are included
The Iran Sanctions Act of 1996 and later amendments are part of this subpart’s scope. These authorities expand restrictions on dealings connected to Iran and can affect contractor eligibility, representations, and award decisions.
Sensitive technology exports matter
The subpart includes the prohibition against contracting with entities that export sensitive technologies to Iran. Contractors must ensure they are not disqualified by prohibited export activity, and agencies must screen for this issue when required.
Multiple statutes work together
This section is a scope provision, so it does not itself list every operational requirement; instead, it identifies the legal authorities that the rest of Subpart 25.7 implements. Users must read the related FAR clauses, representations, and procedures to understand the specific certifications, disclosures, and remedies.
Responsibilities
Contracting Officer
Identify when Subpart 25.7 applies, include the appropriate solicitation provisions and contract clauses, and evaluate contractor eligibility or responsibility issues tied to sanctions, Sudan-related activity, Iran-related activity, or sensitive technology exports.
Contractor
Screen its own operations, affiliates, owners, suppliers, and transaction partners for sanctions and Iran-related restrictions; avoid prohibited transactions; and provide accurate representations, certifications, and disclosures required by the solicitation or contract.
Agency
Apply the statutory and regulatory restrictions consistently in procurement planning, source selection, award, and administration, and ensure acquisition personnel understand the sanctions and Iran-related compliance framework.
OFAC / Department of the Treasury
Administer economic sanctions programs that prohibit transactions involving designated countries, entities, and individuals, and provide the underlying sanctions designations and compliance framework that the FAR subpart implements.
Congress
Establish the statutory restrictions on Sudan-related divestment, Iran sanctions, and sensitive technology exports that shape federal procurement limitations and contractor compliance obligations.
Practical Implications
Contractors should treat this subpart as a screening trigger: check sanctions lists, beneficial ownership, affiliates, and foreign business activities before bidding or signing a contract.
A common pitfall is assuming only direct dealings matter; indirect relationships, subsidiaries, agents, and supply-chain partners can also create compliance risk under sanctions regimes.
Contracting officers should not rely on a contractor’s general reputation or past performance alone; they need the specific representations and clause requirements tied to the applicable FAR provisions.
Because this is a scope section, the real operational requirements are found in the related subpart provisions and clauses, so users should read the entire subpart rather than this section in isolation.
Failure to identify a sanctions or Iran-related issue early can lead to award delays, termination risk, responsibility problems, or potential legal exposure for prohibited transactions.
Official Regulatory Text
This subpart implements- (a) Economic sanctions administered by the Office of Foreign Assets Control (OFAC) in the Department of the Treasury prohibiting transactions involving certain countries, entities, and individuals; (b) The Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174) ( 50 U.S.C. 1701 note); (c) The Iran Sanctions Act of 1996 (Iran Sanctions Act) (Pub. L. 104-172; 50 U.S.C. 1701 note), including amendments by the Iran Freedom Support Act (Pub. L. 109-293), section 102 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Pub. L. 111-195), and Titles II and III of the Iran Threat Reduction and Syria Human Rights Act of 2012 (Pub. L. 112-158); and (d) Prohibition against contracting with entities that export sensitive technologies to Iran ( 22 U.S.C. 8515 ).