FAR 52.225-20—Prohibition on Conducting Restricted Business Operations in Sudan-Certification.
Plain-English Summary
FAR 52.225-20 is a solicitation provision that requires an offeror to certify, simply by submitting an offer, that it does not conduct any restricted business operations in Sudan. The provision defines several key terms, including “business operations,” “marginalized populations of Sudan,” and “restricted business operations,” and it ties those definitions to the Sudan Accountability and Divestment Act of 2007 and the Darfur Peace and Accountability Act. It also identifies specific categories of Sudan-related activities that are considered restricted, such as power production, mineral extraction, oil-related activities, and production of military equipment. At the same time, it carves out several exceptions, including operations conducted directly and exclusively with the regional government of southern Sudan, operations specifically authorized by OFAC or otherwise exempted by federal law, activities providing goods or services to marginalized populations, peacekeeping forces, humanitarian organizations, or for health and education purposes, and operations that have been voluntarily suspended. In practice, this provision is meant to screen out offerors whose Sudan-related business activities conflict with U.S. policy restrictions, and it places the burden on the offeror to make the certification accurately when submitting an offer.
Key Rules
Certification by offer submission
The offeror certifies compliance simply by submitting its offer. No separate certification form or post-award confirmation is required under this provision unless the solicitation or contracting officer asks for additional information.
Broad definition of business operations
“Business operations” is defined very broadly and includes essentially any form of commerce, such as acquiring, developing, owning, leasing, operating, selling, or maintaining equipment, facilities, personnel, products, services, or property. This means the rule can reach a wide range of commercial activity, not just direct sales.
Restricted Sudan activities
Restricted business operations are Sudan operations involving power production, mineral extraction, oil-related activities, or production of military equipment. These are the specific categories the provision targets as prohibited for certification purposes.
Exceptions to restriction
Certain Sudan operations are not treated as restricted if the offeror can demonstrate they fall within listed exceptions, such as direct and exclusive contracts with southern Sudan’s regional government, OFAC authorization, statutory exemptions, support to marginalized populations, peacekeeping or humanitarian work, or goods and services used only for health or education.
Voluntary suspension exception
Operations that have been voluntarily suspended are excluded from the definition of restricted business operations. The offeror must be able to show that the suspension is real and voluntary, not merely temporary or nominal.
Offeror-specific responsibility
The certification is made by the offeror itself, and the truth of the certification depends on the offeror’s own business operations and any operations of the person as defined in the Sudan Accountability and Divestment Act. Contractors must therefore evaluate their own corporate and affiliate activities before certifying.
Responsibilities
Offeror
Review its own business operations in Sudan before submitting an offer and certify that it does not conduct any restricted business operations in Sudan. The offeror must ensure the certification is accurate based on its direct activities and any activities covered by the applicable statutory definition of “person.”
Contracting Officer
Insert the provision when prescribed by FAR 25.1103(d), rely on the offeror’s certification at the solicitation stage, and evaluate any apparent issues or disclosures if the offeror indicates restricted operations or raises an exception.
Agency
Use the provision in covered solicitations and apply the Sudan-related procurement restriction consistently with the underlying statute and implementing regulations.
Offeror’s affiliates or related entities, if relevant under the statute
Ensure the offeror has a complete picture of Sudan-related operations that may be attributable under the statutory definition of “person,” so the certification is not made without knowledge of relevant restricted activities.
Practical Implications
This provision is a pre-award eligibility screen, so contractors should check Sudan-related operations early in the bidding process rather than waiting until award.
The definition of business operations is very broad, so companies should not assume only direct sales into Sudan matter; ownership, leasing, services, and operational support can all be relevant.
The exceptions are narrow and fact-specific. If an offeror relies on an exception, it should be prepared to document why the activity qualifies, especially for OFAC authorization, humanitarian work, or health/education-related services.
A false certification can create serious procurement and compliance risk, including potential rejection of the offer and broader responsibility or integrity concerns.
Companies with complex corporate structures should review affiliate and parent-subsidiary relationships carefully, because the statutory definition of “person” may capture more than the immediate bidding entity.
Official Regulatory Text
As prescribed at 25.1103 (d) , insert the following provision: Prohibition on Conducting Restricted Business Operations in Sudan-Certification (Aug 2009) (a) Definitions . As used in this provision- Business operations means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce. Marginalized populations of Sudan means- (1) Adversely affected groups in regions authorized to receive assistance under section 8(c) of the Darfur Peace and Accountability Act (Pub. L. 109-344) ( 50 U.S.C. 1701 note); and (2) Marginalized areas in Northern Sudan described in section 4(9) of such Act. Restricted business operations means business operations in Sudan that include power production activities, mineral extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174). Restricted business operations do not include business operations that the person (as that term is defined in Section 2 of the Sudan Accountability and Divestment Act of 2007) conducting the business can demonstrate- (1) Are conducted under contract directly and exclusively with the regional government of southern Sudan; (2) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such authorization; (3) Consist of providing goods or services to marginalized populations of Sudan; (4) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization; (5) Consist of providing goods or services that are used only to promote health or education; or (6) Have been voluntarily suspended. (b) Certification . By submission of its offer, the offeror certifies that the offeror does not conduct any restricted business operations in Sudan. (End of provision)