FAR 52.240-1—Prohibition on Unmanned Aircraft Systems Manufactured or Assembled by American Security Drone Act-Covered Foreign Entities.
Plain-English Summary
FAR 52.240-1 implements the American Security Drone Act restrictions on unmanned aircraft systems (UAS) that are manufactured or assembled by an American Security Drone Act-covered foreign entity. This clause covers the required definitions of key terms, the core prohibitions on delivering, operating, and funding certain UAS, the contractor’s duty to check the System for Award Management (SAM) before proposing or using any UAS, and the requirement to follow only those exemptions, exceptions, or waivers that are expressly identified in the contract. It also addresses subcontract flowdown, including to commercial products and commercial services subcontracts. In practice, the clause is meant to keep prohibited foreign-made drone systems out of federal procurement and contract performance, and to ensure contractors do not use federal funds or contract performance to support restricted systems after the statutory effective date. For contractors, this means supply chain screening, documentation, and contract-by-contract compliance review before any drone is proposed, purchased, or flown. For contracting officers, it means ensuring the clause is included when prescribed and that any applicable waiver or exception is clearly stated in the contract.
Key Rules
Key definitions control scope
The clause defines American Security Drone Act-covered foreign entity, FASC-prohibited unmanned aircraft system, unmanned aircraft, and unmanned aircraft system. These definitions determine exactly which drones and related components are restricted, so compliance depends on identifying both the manufacturer/assembler and the system itself.
No delivery of prohibited UAS
The contractor may not deliver any FASC-prohibited unmanned aircraft system, including the unmanned aircraft and associated elements. This is a direct procurement restriction that applies to the item delivered under the contract.
No prohibited operation after 2025
On or after December 22, 2025, the contractor may not operate a FASC-prohibited unmanned aircraft system in performance of the contract. This means even if the system was previously acquired, it cannot be used in contract performance after the statutory date unless an applicable exemption, exception, or waiver applies.
No federal funds for prohibited UAS
On or after December 22, 2025, the contractor may not use Federal funds to procure or operate a FASC-prohibited unmanned aircraft system. The restriction reaches both buying and operating the system with federal money, not just delivering it.
SAM screening is required
Before proposing or using any unmanned aircraft system in contract performance, the contractor must search SAM for the FASC-maintained list of covered foreign entities. This is an affirmative due diligence requirement, not a passive reliance on supplier assurances.
Only stated waivers apply
Any exemption, exception, or waiver must be determined by the agency and expressly stated in the contract. Contractors cannot assume an unstated waiver exists or rely on informal communications.
Flowdown to subcontracts
The contractor must insert the substance of the clause, including the subcontract flowdown paragraph, in all subcontracts and other contractual instruments, including those for commercial products and commercial services. This extends compliance obligations throughout the supply chain.
Responsibilities
Contracting Officer
Include the clause when prescribed by FAR 40.202-8 and ensure any applicable exemption, exception, or waiver is expressly identified in the contract. The contracting officer should also make sure the contract language is clear enough for the contractor to know whether a prohibited UAS may be used or funded.
Contractor
Screen SAM before proposing or using any unmanned aircraft system, avoid delivering prohibited systems, stop operating prohibited systems in contract performance on or after December 22, 2025 unless a stated waiver or exception applies, and avoid using federal funds to procure or operate prohibited systems after that date. The contractor must also flow the clause down to all subcontracts and related contractual instruments.
Subcontractors
Comply with the flowed-down prohibition and screening requirements when supplying or using UAS in support of the prime contract. Subcontractors must not deliver, operate, or support prohibited systems except as allowed by an express contract-based exemption, exception, or waiver.
Agency
Determine whether an exemption, exception, or waiver applies under the statute and ensure that determination is reflected in the contract. The agency must also maintain compliance with the statutory framework governing restricted drone systems.
Practical Implications
Contractors need a drone-specific supply chain review process, because the restriction applies not only to the aircraft but also to associated elements and components needed to operate the system safely and efficiently.
A supplier’s country of origin alone is not enough; the key question is whether the manufacturer or assembler is on the FASC-maintained SAM list of covered foreign entities.
The December 22, 2025 date is critical: before that date the clause bars delivery of prohibited systems, and on or after that date it also bars operation and use of federal funds for procurement or operation.
Contractors should document SAM searches and retain evidence of supplier vetting, because compliance may need to be demonstrated during audits, reviews, or disputes.
A common pitfall is assuming a drone can be used because it was previously purchased or is commercially available; if it is FASC-prohibited and no express contract waiver applies, it cannot be delivered, operated, or federally funded as restricted by the clause.
Official Regulatory Text
As prescribed in 40.202-8 , insert the following clause: Prohibition on Unmanned Aircraft Systems Manufactured or Assembled by American Security Drone Act-Covered Foreign Entities (Nov 2024) (a) Definitions. As used in this clause— American Security Drone Act-covered foreign entity means an entity included on a list developed and maintained by the Federal Acquisition Security Council (FASC) and published in the System for Award Management (SAM) at https://www.sam.gov (section 1822 of the National Defense Authorization Act for Fiscal Year 2024, Pub. L. 118-31, 41 U.S.C. 3901 note prec.). FASC-prohibited unmanned aircraft system means an unmanned aircraft system manufactured or assembled by an American Security Drone Act-covered foreign entity. Unmanned aircraft means an aircraft that is operated without the possibility of direct human intervention from within or on the aircraft ( 49 U.S.C. 44801(11 )). Unmanned aircraft system means an unmanned aircraft and associated elements (including communication links and the components that control the unmanned aircraft) that are required for the operator to operate safely and efficiently in the national airspace system ( 49 U.S.C. 44801(12) ). (b) Prohibition. The Contractor is prohibited from— (1) Delivering any FASC-prohibited unmanned aircraft system, which includes unmanned aircraft (i.e., drones) and associated elements (sections 1823 and 1826 of Pub. L. 118-31, 41 U.S.C. 3901 note prec.); (2) On or after December 22, 2025, operating a FASC-prohibited unmanned aircraft system in the performance of the contract (section 1824 of Pub. L. 118-31, 41 U.S.C. 3901 note prec.); and (3) 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.). (c) Procedures. The Contractor shall search SAM at https://www.sam.gov for the FASC-maintained list of American Security Drone Act-covered foreign entities prior to proposing, or using in performance of the contract, any unmanned aircraft system. Additionally, the Contractor shall ensure any effort or expenditure associated with a FASC-prohibited unmanned aircraft system is consistent with a corresponding exemption, exception, or waiver determination expressly stated in the contract. (d) Exemptions, exceptions, and waivers. The prohibitions in this clause do not apply where the agency has determined an exemption, exception, or waiver applies and the contract indicates that such a determination has been made. [See sections 1823 through 1825 and 1832 of Public Law 118-31 ( 41 U.S.C. 3901 note prec.) for statutory requirements pertaining to exemptions, exceptions, and waivers.]. (e) Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (e), in all subcontracts and other contractual instruments, including subcontracts for the acquisition of commercial products or commercial services. (End of clause)