FAR 25.702—Prohibition on contracting with entities that conduct restricted business operations in Sudan.

Definitions.

FAR 25.702-1 provides the definitions used in the Sudan-related restrictions in FAR 25.702, so it is the starting point for understanding who and what is covered by the rule. It defines four key terms: "appropriate Congressional committees," "business operations," "marginalized populations of Sudan," and "restricted business operations." These definitions matter because they determine the scope of the Sudan divestment and contracting restrictions, including what kinds of commercial activity count as covered business operations, which Sudanese populations are relevant for humanitarian exceptions, and what activities are treated as restricted unless an exception applies. In practice, contractors and contracting officers use these definitions to decide whether a company’s Sudan-related activities trigger disclosure, certification, responsibility, or award restrictions elsewhere in FAR 25.702. The section is important because the legal consequences depend heavily on the exact nature of the business activity and whether it falls within one of the listed exceptions. It also ties the FAR rule to specific statutory and executive-branch authorities, including the Sudan Accountability and Divestment Act and OFAC authorization.

Certification.

FAR 25.702-2 implements the Sudan Accountability and Divestment Act of 2007 by requiring each offeror to certify whether it conducts restricted business operations in Sudan. In practice, this section is a procurement eligibility and representation requirement tied to a specific foreign policy and sanctions-related concern: the U.S. Government does not want to award contracts to firms that are engaged in certain prohibited or disfavored commercial activities in Sudan. The section is narrow in scope, but important because it affects offer preparation, responsibility/eligibility screening, and the accuracy of representations made to the Government. It also signals to contractors that Sudan-related business activities can have direct federal contracting consequences, including the need to review corporate operations, affiliates, and supply chain relationships before submitting an offer. For contracting officers, it is a compliance checkpoint that must be addressed in the solicitation and evaluated as part of the offeror’s certification. For offerors, it means they must know their own business activities well enough to make a truthful certification and avoid misrepresentation.

Remedies.

FAR 25.702-3 explains the remedies available when a contractor is determined to have made a false certification under FAR 25.702-2, which is the certification requirement tied to the applicable domestic preference or trade-related restriction in this subpart. This section covers three enforcement tools: contract termination by the contracting officer, suspension by the suspending and debarring official, and debarment by the suspending and debarring official for up to 3 years. Its purpose is to give the Government immediate and longer-term remedies when a contractor falsely certifies compliance, protecting the integrity of the procurement system and the underlying statutory restrictions. In practice, this means a false certification can affect both the specific contract at issue and the contractor’s broader eligibility for future awards. The section also points readers to subpart 9.4 for the procedures that must be followed before suspension or debarment can be imposed. For contractors, the practical significance is that inaccurate or unsupported certifications can trigger serious contract and responsibility consequences beyond ordinary contract administration.

Waiver.

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.