FAR 52.225-13—Restrictions on Certain Foreign Purchases.
Plain-English Summary
FAR 52.225-13, Restrictions on Certain Foreign Purchases, is a mandatory contract clause that implements U.S. economic sanctions and trade restrictions administered by the Office of Foreign Assets Control (OFAC) in the Department of the Treasury. It tells contractors that they may not acquire supplies or services for contract performance if a proclamation, Executive order, statute, or OFAC regulation would prohibit the transaction for a person subject to U.S. jurisdiction, unless OFAC specifically authorizes it. The clause highlights the practical effect of OFAC sanctions on common contracting activities, including transactions involving Cuba, Iran, and Sudan, and most imports from Burma or North Korea into the United States or its outlying areas. It also points contractors to OFAC’s Specially Designated Nationals and Blocked Persons (SDN) list and OFAC’s regulations and website for current sanctions information. Finally, it requires flowdown of the clause, including paragraph (c), into all subcontracts, making compliance a supply-chain responsibility rather than only a prime contractor issue. In practice, this clause is about screening vendors, products, and services against sanctions restrictions before purchase, documenting any authorization, and ensuring subcontractors follow the same rules.
Key Rules
No prohibited foreign purchases
The contractor may not acquire supplies or services for contract performance if OFAC-administered sanctions laws or regulations would prohibit the transaction for a U.S.-jurisdiction person. This applies unless OFAC has specifically authorized the transaction.
OFAC authorization controls
If a transaction would otherwise be restricted, the only way to proceed is if OFAC authorizes it. Contractors should not assume a purchase is allowed just because it is commercially available or because a foreign supplier is willing to sell it.
Sanctioned countries and imports
The clause specifically warns that most transactions involving Cuba, Iran, and Sudan are prohibited, and most imports from Burma or North Korea into the United States or its outlying areas are also prohibited, absent OFAC authorization.
Screen against sanctions lists
Contractors should check OFAC’s SDN list and related sanctions resources to avoid dealing with blocked persons, entities, or other restricted parties. The clause directs users to OFAC’s current online resources because sanctions designations and rules can change.
Mandatory subcontract flowdown
The contractor must insert this clause, including paragraph (c), in all subcontracts. This makes the sanctions restriction binding throughout the supply chain and requires subcontractors to comply as well.
Use current OFAC guidance
The clause incorporates OFAC’s regulations at 31 CFR Chapter V and OFAC website guidance by reference. Contractors are expected to rely on current sanctions rules, not outdated lists or assumptions.
Responsibilities
Contracting Officer
Include FAR 52.225-13 when prescribed by FAR 25.1103(a) and ensure the contract contains the required sanctions restriction for covered acquisitions.
Contractor
Do not acquire supplies or services for contract performance if the transaction is prohibited by OFAC sanctions unless authorized; screen transactions and counterparties; and comply with all applicable OFAC restrictions.
Contractor
Flow the clause down into every subcontract, including paragraph (c), so subcontractors are bound by the same restrictions.
Subcontractor
Comply with the incorporated sanctions restrictions when performing subcontract work and avoid prohibited purchases or dealings with sanctioned countries, entities, or persons.
Agency/Program Office
Support compliance by identifying when the clause applies and by ensuring acquisition planning does not rely on prohibited foreign sources or transactions.
OFAC/Department of the Treasury
Administer sanctions programs, issue authorizations where permitted, maintain the SDN list and other sanctions resources, and publish implementing regulations and guidance.
Practical Implications
Contractors need a sanctions-screening process before buying anything for contract performance, especially when sourcing internationally or using foreign intermediaries.
A product or service being available on the market does not mean it is lawful to buy; the key question is whether OFAC restrictions apply to the transaction and the parties involved.
The subcontract flowdown requirement means prime contractors must manage compliance across vendors, distributors, and lower-tier subcontractors, not just at the prime level.
Because OFAC rules and lists change, relying on old vendor approvals or outdated screening results is a common compliance mistake.
Transactions involving Cuba, Iran, Sudan, Burma, North Korea, or SDN-listed parties deserve heightened review and often require legal or sanctions counsel input before proceeding.
Official Regulatory Text
As prescribed in 25.1103 (a) , insert the following clause: Restrictions on certain foreign purchases (Feb 2021) (a) Except as authorized by the Office of Foreign Assets Control (OFAC) in the Department of the Treasury, the Contractor shall not acquire, for use in the performance of this contract, any supplies or services if any proclamation, Executive order, or statute administered by OFAC, or if OFAC’s implementing regulations at 31 CFR ChapterV, would prohibit such a transaction by a person subject to the jurisdiction of the United States. (b) Except as authorized by OFAC, most transactions involving Cuba, Iran, and Sudan are prohibited, as are most imports from Burma or North Korea, into the United States or its outlying areas. Lists of entities and individuals subject to economic sanctions are included in OFAC’s List of Specially Designated Nationals and Blocked Persons at https://home.treasury.gov/policy-issues/financial-sanctions/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists . More information about these restrictions, as well as updates, is available in the OFAC’s regulations at 31 CFR ChapterV and/or on OFAC’s website at https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information . (c) The Contractor shall insert this clause, including this paragraph (c), in all subcontracts. (End of clause)