FAR 40.202—Prohibition on the procurement and operation of unmanned aircraft systems manufactured or assembled by American Security Drone Act-covered foreign entities. s.
Plain-English Summary
FAR 40.202 is a short but important policy section that tells readers where to find the government’s rules on the procurement and operation of unmanned aircraft systems (UAS), including both the aircraft themselves and their associated elements. In practical terms, it serves as the FAR’s gateway to restrictions tied to UAS manufactured or assembled by American Security Drone Act-covered foreign entities, which are addressed through the authorities referenced in this part. The section does not itself spell out the full prohibition details, but it establishes that the FAR contains policies and procedures governing acquisition and use of drones and related components. It also makes clear that the authority for these requirements is temporary and expires on December 22, 2028, unless extended or changed by statute. For contracting officers, program offices, and contractors, the significance is that drone purchases, leases, and operational use must be checked against these restrictions before award, acceptance, deployment, or mission use. In practice, this means UAS sourcing, supply chain review, and operational approvals may all be affected by foreign-entity restrictions and the statutory sunset date.
Key Rules
Covers UAS and components
This section applies to unmanned aircraft systems, which includes the drone itself and associated elements. That means the policy is not limited to the airframe; related hardware, software, communications, and other system elements may also be implicated.
Implements procurement and operation rules
The section addresses both buying and using UAS. Agencies and contractors must therefore consider not only whether a drone can be acquired, but also whether it can be operated in federal missions or contract performance.
Tied to covered foreign entities
The policy is linked to unmanned aircraft systems manufactured or assembled by American Security Drone Act-covered foreign entities. This creates a sourcing and supply-chain compliance issue that must be reviewed before procurement or deployment.
Authority is time-limited
The authorities in this section expire on December 22, 2028. Users must treat the rule as statutory and temporary, and verify whether Congress extends, modifies, or replaces it before relying on it after that date.
Responsibilities
Contracting Officers
Ensure solicitations, awards, and contract administration account for the UAS procurement and operation restrictions referenced in this section. They should verify compliance with applicable foreign-entity limitations and confirm the authority remains in effect for the period of performance.
Program and Technical Offices
Identify whether a mission requires a UAS, determine whether the system or its elements are covered by the restriction, and coordinate with acquisition staff before selecting or approving a drone solution.
Contractors
Screen proposed UAS products and supply chains for compliance with the applicable foreign-entity restrictions, and avoid furnishing or operating prohibited systems unless an exception or other lawful authority applies.
Agency Leadership and Policy Officials
Issue internal procedures, approval processes, and oversight controls for UAS procurement and operation, and ensure personnel understand the statutory limitations and expiration date.
Legal and Compliance Staff
Interpret the scope of the prohibition, advise on whether a particular UAS or component is covered, and monitor changes in the underlying statute or FAR implementation.
Practical Implications
Drone purchases now require supply-chain scrutiny, not just technical evaluation. A system may be unacceptable if it is manufactured or assembled by a covered foreign entity, even if it otherwise meets mission needs.
The rule affects operations as well as procurement. Agencies should not assume that a drone can be used simply because it was already acquired; operational use may still be restricted.
Contract files should document the compliance review. A common pitfall is failing to retain evidence showing how the UAS was screened against the foreign-entity restriction.
The sunset date matters for long-term planning. Contracts, options, and sustainment arrangements that extend beyond December 22, 2028 should be reviewed for continued legal support.
Because the section is brief and cross-referential, users must look to the underlying statute and any implementing clauses or agency guidance for the full compliance requirements.
Official Regulatory Text
(a) Section 40.202 prescribes policies and procedures regarding the procurement and operation of unmanned aircraft systems, which includes unmanned aircraft (i.e., drones) and associated elements. (b) The authorities in 40.202 expire on December 22, 2028 (section 1833 of Pub. L. 118-31, 41 U.S.C. 3901 note prec.).