FAR 25.702-4—Waiver.
Plain-English Summary
FAR 25.702-4 explains how the government may obtain a waiver from the prohibition in FAR 25.702-2 for contracting with an offeror that conducts restricted business operations in Sudan. It covers who can grant the waiver, the requirement for a written presidential determination that the waiver is in the national interest, the agency process for requesting a waiver through the Office of Federal Procurement Policy (OFPP), and the required interagency consultations with the National Security Council, the Office of African Affairs, and the Department of State Sudan Office and Sanctions Office. It also addresses when agencies may seek individual or class waivers, the need for agency-head review and clearance, the detailed content that must be included in every waiver request, and the factors considered in deciding whether to recommend a waiver. Finally, it requires OFPP to report granted waivers to Congress twice a year. In practice, this section creates a high-level exception process for rare cases where the national interest outweighs the Sudan-related contracting restriction, while ensuring the decision is documented, reviewed, and informed by foreign policy, integrity, market, and human rights considerations.
Key Rules
Presidential national-interest waiver
Only the President may waive the FAR 25.702-2 requirement, and only on a case-by-case basis. The President must determine that the waiver is in the national interest and certify that determination in writing to the appropriate congressional committees.
Agency requests go through OFPP
An agency cannot grant the waiver on its own. It must submit the request to the Administrator of OFPP with enough lead time for review and approval, making OFPP the central coordinating point for the waiver process.
Required interagency consultation
After receiving the request, OFPP must consult with the President’s National Security Council, the Office of African Affairs, and the Department of State Sudan Office and Sanctions Office. These consultations are intended to assess the foreign policy implications before a national-interest recommendation is made.
Individual and class waivers
Agencies may request either an individual waiver or a class waiver, but class waivers are limited to situations where the class of supplies is unavailable from any other source and the waiver is in the national interest. Waivers are not permanent and may be cancelled if circumstances warrant.
Agency-head review required
Before submission, the waiver request must be reviewed and cleared by the agency head. This adds a senior-level control to ensure the request is justified and consistent with agency policy and national-interest considerations.
Detailed waiver package
Every waiver request must include specific identifying, contractual, market, performance, relationship, and humanitarian information. The request must explain why no other offeror can provide the product or service, why the particular offeror must be used, and why waiving the prohibition is in the national interest, including foreign policy considerations identified through consultation.
Past performance and integrity matter
The request must include documentation on the offeror’s past performance and integrity, including CPARS and other relevant information. This ensures the waiver decision considers whether the offeror is responsible and whether there are performance or ethics concerns.
Connections and human rights considerations
The request must address the offeror’s relationships with other firms conducting prohibited business operations in Sudan, any humanitarian efforts, the human rights impact of doing business with the offeror, and the extent of the offeror’s business operations in Sudan. These factors help evaluate broader policy consequences beyond price and availability.
Congressional reporting
OFPP must semiannually report waivers granted to Congress on April 15 and October 15 under section 6(c) of the Sudan Accountability and Divestment Act of 2007. This reporting requirement provides oversight and transparency for waiver use.
Responsibilities
President
May grant a waiver of the FAR 25.702-2 requirement on a case-by-case basis only if the President determines the waiver is in the national interest and certifies that determination in writing to the appropriate congressional committees.
Agency
May request an individual or class waiver, but must submit the request to OFPP in time for review and approval. The agency must also assemble the required supporting information and ensure the request is properly justified.
Agency Head
Must review and clear the waiver request before it is submitted. This review is a prerequisite to forwarding the request for higher-level consideration.
Administrator of OFPP
Receives agency waiver requests, coordinates the review process, and considers the consultation results and submitted information when deciding whether to recommend that the President waive the requirement.
President’s National Security Council
Consults with OFPP to assess the foreign policy aspects of the waiver request and help determine whether a national-interest recommendation is appropriate.
Office of African Affairs
Provides consultation to OFPP on the foreign policy implications of the waiver request, especially as they relate to Sudan and regional policy concerns.
Department of State Sudan Office and Sanctions Office
Consults with OFPP on sanctions, Sudan policy, and related foreign policy issues that bear on whether a waiver should be recommended.
OFPP
Must consider the consultation input and the waiver package information in deciding whether to recommend a presidential waiver, and must semiannually report granted waivers to Congress.
Offeror
Does not request the waiver directly under this section, but is the subject of the waiver package and must be described in detail, including performance, integrity, relationships, humanitarian efforts, and Sudan business operations.
Practical Implications
This is a narrow exception process, not a routine procurement tool. Contractors and agencies should assume the Sudan-related prohibition applies unless a fully documented waiver is approved through the required chain.
The waiver package is evidence-heavy. Missing market research, incomplete CPARS/integrity information, or weak justification about why no other source exists can delay or sink the request.
Foreign policy and human rights issues are central, not incidental. Even if a supplier is the only available source, the government still has to weigh sanctions, foreign policy, and human rights impacts before recommending a waiver.
Timing matters because OFPP needs sufficient time for review, consultation, and possible presidential action. Agencies that wait until late in the acquisition process may miss award schedules.
Class waivers are especially hard to justify. Agencies must show the class is unavailable from any other source and that the waiver is in the national interest, so broad or convenience-based requests are unlikely to succeed.
Official Regulatory Text
(a) The President may waive the requirement of subsection 25.702-2 on a case-by-case basis if the President determines and certifies in writing to the appropriate congressional committees that it is in the national interest to do so. (b) An agency seeking waiver of the requirement shall submit the request to the Administrator of the Office of Federal Procurement Policy (OFPP), allowing sufficient time for review and approval. Upon receipt of the waiver request, OFPP shall consult with the President’s National Security Council, Office of African Affairs, and the Department of State Sudan Office and Sanctions Office to assess foreign policy aspects of making a national interest recommendation. (c) Agencies may request a waiver on an individual or class basis; however, waivers are not indefinite and can be cancelled if warranted. (1) A class waiver may be requested only when the class of supplies is not available from any other source and it is in the national interest. (2) Prior to submitting the waiver request, the request must be reviewed and cleared by the agency head. (3) All waiver requests must include the following information: (i) Agency name, complete mailing address, and point of contact name, telephone number, and email address; (ii) Offeror’s name, complete mailing address, and point of contact name, telephone number, and email address; (iii) Description/nature of product or service; (iv) The total cost and length of the contract; (v) Justification, with market research demonstrating that no other offeror can provide the product or service and stating why the product or service must be procured from this offeror, as well as why it is in the national interest for the President to waive the prohibition on contracting with this offeror that conducts restricted business operations in Sudan, including consideration of foreign policy aspects identified in consultation(s) pursuant to 25.702-4 (b); (vi) Documentation regarding the offeror’s past performance and integrity (see the Contractor Performance Assessment Reporting System (CPARS) including the Federal Awardee Performance Information and Integrity System at https://www.cpars.gov and any other relevant information); (vii) Information regarding the offeror’s relationship or connection with other firms that conduct prohibited business operations in Sudan; and (viii) Any humanitarian efforts engaged in by the offeror, the human rights impact of doing business with the offeror for which the waiver is requested, and the extent of the offeror’s business operations in Sudan. (d) The consultation in 25.702-4 (b) and the information in 25.702-4 (c)(3) will be considered in determining whether to recommend that the President waive the requirement of subsection 25.702-2 . In accordance with section 6(c) of the Sudan Accountability and Divestment Act of 2007, OFPP will semiannually submit a report to Congress, on April 15 th and October 15 th, on the waivers granted.