FAR 40.202-3—Prohibition.
Plain-English Summary
FAR 40.202-3 establishes the core prohibition on federal executive agencies’ use of certain unmanned aircraft systems that are identified as FASC-prohibited. It covers three related subjects: (1) the ban on procuring a FASC-prohibited unmanned aircraft system, including contract extensions and renewals such as exercising options; (2) beginning on December 22, 2025, the ban on procuring services to operate a FASC-prohibited unmanned aircraft system, again including extensions and renewals; and (3) beginning on December 22, 2025, the ban on using Federal funds to procure or operate a FASC-prohibited unmanned aircraft system. The section exists to implement statutory restrictions and to prevent agencies from directly or indirectly supporting covered drones and related services. In practice, it means contracting officers, program offices, and financial officials must screen drone-related buys and service arrangements carefully, because the prohibition applies not only to new awards but also to option exercises and other contract continuations. The rule is broad in effect but not absolute, because it operates subject to any applicable exemption, exception, or waiver in the neighboring FAR provisions.
Key Rules
No prohibited UAS purchases
Executive agencies may not procure a FASC-prohibited unmanned aircraft system unless an exemption, exception, or waiver applies. This covers direct acquisition of the system itself, not just the initial award.
Options and renewals are covered
The prohibition expressly includes extending or renewing a contract, such as exercising an option. Agencies cannot avoid the rule by continuing an existing contract if the underlying acquisition is prohibited.
Service procurements banned after 2025
On or after December 22, 2025, agencies may not procure services for the operation of a FASC-prohibited unmanned aircraft system unless an applicable exemption, exception, or waiver applies. This reaches operational support, not just hardware purchases.
Funding use is also barred
On or after December 22, 2025, agencies may not use Federal funds to procure or operate a FASC-prohibited unmanned aircraft system. This adds a funding restriction that can apply even where the transaction is structured through another mechanism.
Relief provisions may apply
The prohibition is not absolute; agencies must check whether an exemption, exception, or waiver under FAR 40.202-4, 40.202-5, or 40.202-6 applies before proceeding. Those provisions are the only stated avenues for lawful deviation.
Responsibilities
Contracting Officer
Must ensure solicitations, awards, modifications, option exercises, and renewals do not procure a FASC-prohibited unmanned aircraft system or, after December 22, 2025, related operation services, unless a valid exemption, exception, or waiver applies.
Program/Requirement Owner
Must identify whether the requirement involves a covered unmanned aircraft system or operation service and provide accurate technical and sourcing information so the acquisition can be screened for prohibition issues.
Agency Budget/Finance Officials
Must prevent the obligation or expenditure of Federal funds for the procurement or operation of a FASC-prohibited unmanned aircraft system on or after December 22, 2025, unless an authorized relief provision applies.
Contractor
Must not offer, supply, or continue performance for prohibited unmanned aircraft systems or covered operation services where the agency is barred from procuring them, and should disclose any known compliance issues affecting performance.
Agency Leadership/Approving Officials
Must ensure internal controls, review processes, and waiver/exception handling are in place so prohibited purchases or funding actions are not approved inadvertently.
Practical Implications
Agencies need to screen both the drone platform and the service arrangement; a contract for operating a prohibited system can be barred even if the agency is not buying the aircraft itself.
Option exercises and contract renewals are a common trap because they can look like routine administration, but they are treated as prohibited procurement actions when the underlying item or service is covered.
The December 22, 2025 date matters: before that date, the rule expressly bars procurement of the system itself; on and after that date, the ban expands to operation services and Federal fund usage.
Contracting and finance staff should coordinate early, because a procurement may be legally problematic even if the requirement is mission-critical or already budgeted.
When a requirement involves unmanned aircraft, agencies should document the screening result and any exemption, exception, or waiver basis to avoid later protest, audit, or funding issues.
Official Regulatory Text
Unless an exemption, exception, or waiver applies (see 40.202-4 , 40.202-5 , and 40.202-6 , respectively), executive agencies are prohibited from- (a) Procuring a FASC-prohibited unmanned aircraft system (section 1823 and 1826 of Pub. L. 118-31, 41 U.S.C. 3901 note prec.). The prohibition includes extending or renewing a contract ( e.g. , exercising an option); (b) On or after December 22, 2025, procuring services for the operation of a FASC-prohibited unmanned aircraft system (section 1824 of Pub. L. 118-31, 41 U.S.C. 3901 note prec.). The prohibition includes extending or renewing a contract (e.g., exercising an option); and (c) On or after December 22, 2025, using Federal funds for the procurement or operation of a FASC-prohibited unmanned aircraft system (section 1825 of Pub. L. 118-31, 41 U.S.C. 3901 note prec.).