FAR 25.703-4—Waiver.
Plain-English Summary
FAR 25.703-4 explains how to request a waiver from the Iran-related contracting prohibitions in FAR 25.703-2 and 25.703-3. It covers who may request a waiver, where the request must be sent, the need to allow enough time for review, and the fact that waivers may be granted on an individual or class basis but are not permanent and can be cancelled. The section also requires agency head review and clearance before submission of a waiver request. Most importantly, it lays out the information that should be included in the request, including agency and offeror contact details, a description of the product or service, contract value and duration, market research and justification, past performance and integrity information, and details about any relationship between the offeror and other firms tied to Iran-related prohibited conduct. In practice, this section is the roadmap for building a waiver package strong enough to support a national interest or national security determination under the Iran Sanctions Act and related authorities. For contractors, it signals that a waiver is possible but highly scrutinized; for agencies, it creates a formal process that requires documentation, senior-level review, and a clear showing that no other source is available and that the waiver is justified.
Key Rules
Submit to OFPP
An agency or contractor seeking a waiver must submit the request to the Office of Federal Procurement Policy and allow enough time for review and approval. The request must be consistent with the applicable statutory waiver authority and the Presidential Memorandum of September 23, 2010.
Individual or class waivers
Agencies may request waivers for a single procurement or for a class of supplies or equipment. A class waiver is allowed only when the class is unavailable from any other source and granting the waiver is in the national interest.
Waivers are temporary
Waivers are not indefinite. Even if granted, they may be cancelled later if circumstances warrant, so the approval does not create a permanent exemption from the underlying prohibition.
Agency head clearance required
Before a waiver request is submitted, it must be reviewed and cleared by the agency head. This adds a senior-level control step before the request goes forward.
Market research and justification
The request should include market research showing that no other offeror can provide the product or service and explaining why the item or service must be procured from the named offeror.
National interest or national security rationale
If the offeror has the specific Iran-related conduct described in the rule, the request must explain why a presidential waiver is justified—either because it is in the national interest or essential to the national security interests of the United States, depending on the statutory basis.
Past performance and integrity evidence
The waiver package should include documentation on the offeror’s past performance and integrity, including CPARS and FAPIIS information, plus any other relevant information.
Relationship and conduct details
The request must identify any relationship or connection the offeror has with other firms engaged in the prohibited Iran-related activities and must describe the sensitive technology, activities, or transactions at issue.
Responsibilities
Agency
Prepare waiver requests when needed, decide whether to seek an individual or class waiver, gather the required supporting information, and ensure the request is submitted to OFPP with enough lead time for review. The agency must also ensure the request is reviewed and cleared by the agency head before submission.
Contractor / Offeror
If seeking a waiver, provide the agency with the information needed for the request, including contact details, product or service descriptions, justification, past performance and integrity information, and details about any Iran-related relationships or conduct. The contractor should also support the agency’s market research and factual showing.
Agency Head
Review and clear the waiver request before it is submitted. This senior-level approval is a required gatekeeping step for the agency.
Office of Federal Procurement Policy (OFPP)
Receive waiver requests, review them, and approve or deny them as appropriate under the applicable statutory and presidential waiver authorities.
Contracting Officer
Coordinate the waiver package, ensure the solicitation or award action complies with the Iran-related prohibitions unless a waiver is approved, and help assemble the factual record supporting the request.
Practical Implications
Waiver requests are documentation-heavy and time-sensitive, so agencies should start early; waiting until award is imminent can make it impossible to complete review in time.
The hardest part is usually the justification: the requester must show both lack of alternative sources and a strong policy basis for the waiver, not just convenience or schedule pressure.
Contractors with any Iran-related ties, exports, or transactions described in the rule should expect close scrutiny of ownership, affiliates, and related firms, not just the named offeror itself.
A waiver does not eliminate future risk because it can be cancelled; agencies should treat approval as conditional and monitor whether the facts change.
Incomplete CPARS/FAPIIS review, weak market research, or missing relationship disclosures are common reasons a waiver package may be delayed or rejected.
Official Regulatory Text
(a) An agency or contractor seeking a waiver of the requirements of 25.703-2 or 25.703-3 , consistent with section 6(b)(5) of the Iran Sanctions Act or 22 U.S.C. 8551 (b), respectively, and the Presidential Memorandum of September 23, 2010 (75 FR 67025), shall submit the request to the Office of Federal Procurement Policy, allowing sufficient time for review and approval. (b) 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 or equipment 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. (c) In general, all waiver requests should include the following information: (1) Agency name, complete mailing address, and point of contact name, telephone number, and e-mail address. (2) Offeror’s name, complete mailing address, and point of contact name, telephone number, and e-mail address. (3) Description/nature of product or service. (4) The total cost and length of the contract. (5) 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. (i) If the offeror exports 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, provide rationale why it is in the national interest for the President to waive the prohibition on contracting with this offeror, as required by 22 U.S.C. 8551 (b). (ii) If the offeror conducts activities for which sanctions may be imposed under section 5 of the Iran Sanctions Act or engages in any transaction that exceeds the threshold at 25.703-2 (a)(2) with Iran’s Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act, provide rationale why it is essential to the national security interests of the United States for the President to waive the prohibition on contracting with this offeror, as required by section 6(b)(5) of the Iran Sanctions Act. (6) Documentation regarding the offeror’s past performance and integrity (see the Contractor Performance Assessment Reporting System (CPARS) and the Federal Awardee Performance Information and Integrity System at https://www.cpars.gov , and any other relevant information). (7) Information regarding the offeror’s relationship or connection with other firms that- (i) Export 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; (ii) Conduct activities for which sanctions may be imposed under section 5 of the Iran Sanctions Act; or (iii) Conduct any transaction that exceeds the threshold at 25.703-2 (a)(2) with Iran’s Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act. (8) Describe- (i) The sensitive technology and the entity or individual to which it was exported (i.e., the government of Iran or an entity or individual owned or controlled by, or acting on behalf or at the direction of, the government of Iran); (ii) The activities in which the offeror is engaged for which sanctions may be imposed under section 5 of the Iran Sanctions Act; or (iii) The transactions that exceed the threshold at 25.703-2 (a)(2) with Iran’s Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act.