89472 Federal Register / Vol. 89, No. 218 / Tuesday, November 12, 2024 / Rules and Regulations 

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 FASCprohibited 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) 

■ 9. Amend section 52.244–6 by— 

■ a. Revising the date of the clause; and 

■ b. Redesignating paragraph 

(c)(1)(xxiii) as paragraph (c)(1)(xxiv) and 

adding a new paragraph (c)(1)(xxiii). 

The revision and addition read as 

follows: 

52.244–6 Subcontracts for Commercial 

Products and Commercial Services. 

* * * * * 

Subcontracts for Commercial Products 

and Commercial Services (Nov 2024) 

* * * * * 

(c)(1) * * * 

(xxiii) 52.240–1, Prohibition on 

Unmanned Aircraft Systems 

Manufactured or Assembled by 

American Security Drone Act—Covered 

Foreign Entities (Nov 2024) (Sections 

1821–1826, Pub. L. 118–31, 41 U.S.C. 

3901 note prec.). 

* * * * * 

[FR Doc. 2024–26061 Filed 11–8–24; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Part 52 

[FAC 2025–01, FAR Case 2023–018; Item 

II; Docket No. FAR–2023–0018; Sequence 

No. 1] 

RIN 9000–AO66 

Federal Acquisition Regulation: 

Clarification of System for Award 

Management Preaward Registration 

Requirements 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Interim rule. 

SUMMARY: DoD, GSA, and NASA are 

issuing an interim rule amending the 

Federal Acquisition Regulation (FAR) to 

clarify System for Award Management 

preaward registration requirements. 

DATES: 

Effective date: November 12, 2024. 

Comment date: Interested parties 

should submit written comments to the 

Regulatory Secretariat Division at the 

address shown below on or before 

January 13, 2025, to be considered in 

the formation of the final rule. 

ADDRESSES: Submit comments in 

response to FAC 2025–01, FAR Case 

2023–018 to the Federal eRulemaking 

portal at https://www.regulations.gov by 

searching for ‘‘FAR Case 2023–018’’. 

Select the link ‘‘Comment Now’’ that 

corresponds with ‘‘FAR Case 2023– 

018’’. Follow the instructions provided 

on the ‘‘Comment Now’’ screen. Please 

include your name, company name (if 

any), and ‘‘FAR Case 2023–018’’ on your 

attached document. If your comment 

cannot be submitted using https://

www.regulations.gov, call or email the 

points of contact in the FOR FURTHER

INFORMATION CONTACT section of this 

document for alternate instructions. 

Instructions: Please submit comments 

only and cite ‘‘FAR Case 2023–018’’ in 

all correspondence related to this case. 

Comments received generally will be 

posted without change to https://

www.regulations.gov, including any 

personal and/or business confidential 

information provided. Public comments 

may be submitted as an individual, as 

an organization, or anonymously (see 

frequently asked questions at https://

www.regulations.gov/faq). To confirm 

receipt of your comment(s), please 

check https://www.regulations.gov, 

approximately two to three days after 

submission to verify posting. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Mr. 

Benjamin Collins, Procurement Analyst, 

at 850–826–0058 or by email at 

benjamin.collins@gsa.gov. For 

information pertaining to status or 

publication schedules, or alternative 

instructions for submitting comments if 

https://www.regulations.gov cannot be 

used, contact the Regulatory Secretariat 

Division at 202–501–4755 or 

GSARegSec@gsa.gov. Please cite FAC 

2025–01, FAR Case 2023–018. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This interim rule revises the 

solicitation provision at FAR 52.204–7, 

System for Award Management, to 

clarify the System for Award 

Management (SAM) preaward 

registration requirements in paragraph 

(b)(1) of the provision. DoD, GSA, and 

NASA published a final rule in the 

Federal Register at 83 FR 48691 on 

September 26, 2018, to update 

instructions for registration in SAM and 

correct an inconsistency involving 

timing of registration. One of the 

updates to the provision at FAR 52.204– 

7, System for Award Management, 


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Federal Register / Vol. 89, No. 218 / Tuesday, November 12, 2024 / Rules and Regulations 89473 

included language that has been 

construed in some cases as levying a 

requirement for offerors to maintain a 

continuous, uninterrupted, registration 

during the entirety of the preaward 

process. This interim rule clarifies that 

the offeror must be registered at time of 

offer submission and at time of contract 

award, but would not be required to be 

registered at every moment in between 

those two points. 

II. Discussion and Analysis 

Prior to the issuance of the September 

26, 2018 rule, the FAR required 

registration in SAM at contract award in 

some instances (e.g., FAR 4.1102 and 

52.204–7) and at the point of offer 

submission in others (e.g., FAR 52.204– 

8). The rule aimed to correct these 

inconsistencies. 

FAR 52.204–7(b)(1) was changed from 

‘‘By submission of an offer, the offeror 

acknowledges the requirement that a 

prospective awardee shall be registered 

in the SAM database prior to award, 

during performance . . .’’ to ‘‘An 

Offeror is required to be registered in 

SAM when submitting an offer or 

quotation, and shall continue to be 

registered until time of award, during 

performance . . . .’’ 

The predominant FAR text changes 

centered on ensuring offerors 

understood registration was required at 

the point of offer submission versus 

contract award—as that was the earliest 

point for assessing compliance. 

This particular change has proven to 

be pivotal in recent bid protest 

decisions by the Government 

Accountability Office (GAO) (e.g., TLS 

Joint Venture, LLC, B–422275, April 1, 

2024) and the United States Court of 

Federal Claims (COFC) (e.g., Myriddian, 

LLC v. The United States, 165 Fed. Cl. 

650 (May 23, 2023)). While the nature 

of the procurements and associated 

remedies varied, the decisions were 

uniform in highlighting FAR 52.204– 

7(b)(1) as requiring an offeror to be 

registered at the point of offer 

submission and maintain that 

registration through contract award. 

While this continuous, active, 

registration is the anticipated normal 

state expected of offerors and 

contractors conducting business via 

Federal contract, the Government is 

now directing that the minimum 

preaward registration compliance is at 

the points of offer submission (prior to 

offer evaluation) and contract award 

(prior to contract execution). 

Other FAR references (e.g., FAR 

32.1110(a)(1), FAR 52.204–13) allude to 

a contractor being required to 

‘‘maintain’’ registration; however, this is 

‘‘during contract performance, and 

through final payment’’, which is after 

contract award. This requirement 

reflects the need to maintain SAM 

registration to support contract 

execution, namely to ensure payments 

can be mechanized. No other FAR text 

carries the ‘‘continuous’’ preaward 

registration language. This rule also 

updates the provision at FAR 52.204–7, 

System for Award Management, to 

remove references to registration 

requirements applicable after contract 

award (i.e., ‘‘during contract 

performance, and through final 

payment’’). A pointer to FAR clause 

52.204–13, System for Award 

Management Maintenance, has been 

added in the provision, however, to 

ensure offerors do not mistakenly 

perceive the removal of the language as 

a removal of the requirement if awarded 

a contract. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold (SAT) and for Commercial 

Products (Including Commercially 

Available Off-the-Shelf (COTS) Items) 

or for Commercial Services 

This rule amends the provision at 

FAR 52.204–7, System for Award 

Management. However, this rule does 

not impose any new requirements on 

contracts at or below the SAT, for 

commercial products (including COTS 

items), or for commercial services. The 

provision continues to apply to 

acquisitions at or below the SAT, 

acquisitions for commercial products 

(including COTS items), and 

commercial services. 

IV. Expected Impact of the Rule 

Offerors are required to be registered 

in SAM to participate in the Federal 

marketplace, with some exceptions 

listed in FAR 4.1102. Registration in 

SAM will be required upon submission 

of an offer or quote and at the time of 

the award as a result of this rule, which 

amends FAR 52.204–7(b)(1). Offerors 

will continue to be required to register 

in SAM to participate in the Federal 

marketplace. There is no increase in 

burden. 

This rule makes clear that a lapse in 

registration that occurs after offer 

submission and is corrected before 

contract award will not render an 

offeror ineligible for award under FAR 

52.204–7(b)(1). The view that such a 

lapse makes an offeror ineligible has 

resulted in loss of resources for 

otherwise successful small business 

offerors (e.g., time and costs of 

litigation, lost income) and the 

Government (e.g., loss of best-value 

provider, delays in mission execution 

via intended contract solution). 

Ambiguity regarding the perceived 

intent at FAR 52.204–7(b)(1) has led to 

disparate agency interpretations and 

uncertainty in the acquisition 

community. In practice, contracting 

officers, in the preaward environment, 

generally verify registration status of 

offerors at the points of offer submission 

and contract award and not the time 

between those two points. Contracting 

officers typically do this registration 

review as part of a broader 

responsibility and qualification review 

in SAM (e.g., reviewing the entity’s 

status for possible debarment, 

suspension, proposed debarment, or 

other Governmentwide exclusion). 

While the provision at FAR 52.204–7 

speaks to offeror responsibilities and 

does not impose a requirement on 

agencies to confirm an offeror has been 

registered at any and all moments 

between offer submission and award, 

the recent COFC and GAO decisions 

make it clear that failure to do so 

imperils the award decision. 

In summary, this rule is expected to 

mitigate the risk of more litigation and 

mission delays. 

V. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 (as 

amended by E.O. 14094) and 13563 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is not a significant 

regulatory action and, therefore, was not 

subject to review under section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, dated September 30, 1993. 

VI. Congressional Review Act 

Pursuant to the Congressional Review 

Act, DoD, GSA, and NASA will send 

this rule to each House of the Congress 

and to the Comptroller General of the 

United States. The Office of Information 

and Regulatory Affairs (OIRA) in the 

Office of Management and Budget 

(OMB) has determined that this rule 

does not meet the definition in 5 U.S.C. 

804(2). 

VII. Regulatory Flexibility Act 

DoD, GSA, and NASA do not expect 

this interim rule to have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of the Regulatory Flexibility 


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89474 Federal Register / Vol. 89, No. 218 / Tuesday, November 12, 2024 / Rules and Regulations 

Act, 5 U.S.C. 601–612, because this rule 

makes a minor change in SAM 

registration requirements for offerors. 

This change will help small businesses 

stay eligible for contract awards. 

However, an Initial Regulatory 

Flexibility Analysis (IRFA) has been 

performed and is summarized as 

follows: 

DoD, GSA, and NASA are amending the 

FAR to clarify System for Award 

Management preaward registration 

requirements. This interim rule changes the 

provision at FAR 52.204–7, System for 

Award Management, to clarify that an offeror 

must be registered at time of offer submission 

and at time of contract award, but would not 

be required to be registered at every moment 

in between those two points. The current 

language has led to interpretations that have 

disrupted Government procurements and 

resulted in lost business opportunities for 

some companies, including small businesses. 

This interim rule addresses registration 

requirements for offerors in SAM. The 

implementation of SAM, which combined 

the functional capabilities of numerous 

legacy systems, was in response to the EGovernment Act of 2002 (Pub. L. 107–347) to 

improve the management and promotion of 

electronic Government services and 

processes. Promulgation of the FAR is 

authorized by 40 U.S.C. 121(c); 10 U.S.C. 

chapter 4 and 10 U.S.C. chapter 137 legacy 

provisions (see 10 U.S.C. 3016); and 51 

U.S.C. 20113. 

This rule applies to entities, including 

small entities, that submit offers to the 

Federal Government for acquisitions that 

exceed the micro-purchase threshold. As of 

the end of calendar year 2023, of the 486,551 

active registrants in SAM for ‘‘all awards,’’ 

356,528 (73 percent) represented their size as 

small for their primary North American 

Industry Classification System code. It is 

estimated that not more than half of those 

small entities will submit an offer in a given 

year. 

This rule does not introduce any new 

reporting or recordkeeping requirements. 

Small entities that do business with the 

Federal Government are already familiar with 

SAM registration requirements. The burden 

to provide the information required by the 

provision at FAR 52.204–7, System for 

Award Management, is covered by OMB 

Control Number 9000–0189, Certain Federal 

Acquisition Regulation Part 4 Requirements: 

FAR Sections Affected: 52.204–3, 52.204–6, 

52.204–7, 52.204–12 thru 52.204–15, 52.204– 

20, 52.204–23, 52.212–1(j), 52.212–3(b), and 

52.212–3(l). However, no changes to this 

information collection requirement are made 

by this interim rule. 

The rule does not duplicate, overlap, or 

conflict with any other Federal rules. 

There are no available alternatives to the 

interim rule to accomplish the desired 

objective. The changes in this rule help 

preserve the Government’s intent for SAM 

preaward registration requirements and 

protect offerors from unintended 

consequences of momentary lapses in 

registration. Thus, it is not possible, or 

desirable, to exempt small entities from 

coverage of the rule. 

The Regulatory Secretariat Division 

has submitted a copy of the IRFA to the 

Chief Counsel for Advocacy of the Small 

Business Administration. A copy of the 

IRFA may be obtained from the 

Regulatory Secretariat Division. DoD, 

GSA, and NASA invite comments from 

small business concerns and other 

interested parties on the expected 

impact of this interim rule on small 

entities. 

DoD, GSA, and NASA will also 

consider comments from small entities 

concerning the existing regulations in 

subparts affected by the rule in 

accordance with 5 U.S.C. 610. Interested 

parties must submit such comments 

separately and should cite 5 U.S.C. 610 

(FAR Case 2023–018), in 

correspondence. 

VIII. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. 3501–3521) applies to the 

information collection described in this 

rule; however, these changes to the FAR 

do not impose additional information 

collection requirements to the 

paperwork burden previously approved 

under OMB Control Number 9000–0189, 

Certain Federal Acquisition Regulation 

Part 4 Requirements: FAR Sections 

Affected: 52.204–3, 52.204–6, 52.204–7, 

52.204–12 thru 52.204–15, 52.204–20, 

52.204–23, 52.212–1(j), 52.212–3(b), and 

52.212–3(l). 

IX. Determination To Issue an 

Immediately Effective Interim Rule 

A determination has been made under 

the authority of the Secretary of 

Defense, the Administrator of General 

Services, and the Administrator of the 

National Aeronautics and Space 

Administration that urgent and 

compelling reasons exist to promulgate 

this interim rule effective immediately 

without prior opportunity for public 

comment, see 41 U.S.C. 1707(d). This 

action is necessary to protect contractors 

and the Federal Government from the 

costs and delays of bid protest litigation 

associated with the provision at FAR 

52.204–7, System for Award 

Management. 

DoD, GSA, and NASA attempted to 

clarify the timing requirements for 

registration in SAM through a final rule 

in the Federal Register at 83 FR 48691 

on September 26, 2018. Prior to the 

aforementioned rule the provision at 

52.204–7 stated an offeror needed to be 

registered ‘‘prior to award’’ whereas 

other areas of the FAR required offerors 

to be registered with the submission of 

the offer and at the time of award. The 

2018 rule was intended to clarify that 

‘‘prior to award’’ meant both at the time 

of offer submission and at award. 

Since the rule was issued, however, 

post-award bid protests have 

increasingly focused on temporary 

lapses in registration, between offer 

submission and contract award, by the 

apparently successful offeror. The May 

23, 2023, Myriddian, LLC v. United 

States decision perpetuated an 

interpretation that the 2018 rule 

introduced a new requirement for 

absolutely uninterrupted, continuous, 

registration during the entirety of the 

preaward period with failure to do so 

rendering an offeror ineligible for 

award. After the Myriddian decision, 

bid protests have continued to be filed 

on lapses of registration (see, e.g., 

Hanford Tank Disposition Alliance, LLC 

v. United States (June 23, 2023); 

Independent Rough Terrain Center, LLC 

v. United States (July 1, 2024); TLS Joint 

Venture, LLC, B–422275 (April 1, 2024); 

VivSoft Technologies, LLC, B– 

421561.15, B–421561.17 (April 11, 

2024); Zolon PSC II, LLC v. United 

States (August 2024)). The 2018 rule’s 

purpose was clarifying in nature and not 

intended to introduce new requirements 

with such severe ramifications for 

offerors. 

The unintended interpretation 

applied in recent bid protest decisions 

represents an unwitting barrier to entry 

and significant disruption to the 

industrial base and the Federal agencies 

they support, which warrants 

immediate action. If left unclarified, 

perpetuation of this interpretation will: 

(1) Introduce significant risk of lost 

income for contractors, particularly 

small businesses, due to temporary 

lapses in registration often for minor 

and technical reasons; 

(2) Put agencies at unnecessary high 

risk for the cost and delay of protests if 

award is made to an offeror that had a 

temporary lapse in registration between 

offer submission and award; 

(3) Cause undue confusion and 

frustration for small businesses working 

through registration renewals and 

attempting to win Federal contracts; 

(4) Cause undue confusion and 

frustration for contracting officers 

attempting to verify compliance with 

the registration requirement; and 

(5) Unnecessarily complicate the 

ability of the Government to meet its 

mission needs with best-value solutions. 

Issuing an immediately effective 

interim rule will allow the Government 

to issue, in a timely manner, the needed 

clarification to accurately preserve 

preaward registration requirements for 

offerors while also eliminating 

unintended litigation risks presented to 

contractors and their agency customers, 


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Federal Register / Vol. 89, No. 218 / Tuesday, November 12, 2024 / Rules and Regulations 89475 

which divert resources, deny business 

earned income, and hamper mission 

success. This rule simply clarifies 

preaward registration requirements, so 

there is little risk the interim rule will 

impose a requirement on the public on 

which they have not already had the 

opportunity to comment. However, 

pursuant to 41 U.S.C. 1707 and FAR 

1.501–3(b), the Department of Defense, 

General Services Administration, and 

National Aeronautics and Space 

Administration will consider public 

comments received in response to this 

interim rule in the formation of the final 

rule. 

List of Subjects in 48 CFR Part 52 

Government procurement. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Therefore, DoD, GSA, and NASA 

amend 48 CFR part 52 as set forth 

below: 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 1. The authority citation for 48 CFR 

part 52 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 4 and 10 U.S.C. chapter 137 legacy 

provisions (see 10 U.S.C. 3016); and 51 

U.S.C. 20113. 

■ 2. Amend section 52.204–7 by 

revising the date of the provision and 

paragraph (b)(1) to read as follows: 

52.204–7 System for Award Management. 

* * * * * 

System for Award Management (Nov 

2024) 

* * * * * 

(b)(1) An Offeror is required to be 

registered in SAM when submitting an 

offer or quotation and at time of award 

(see FAR clause 52.204–13, System for 

Award Management Maintenance, for 

the requirement to maintain SAM 

registration during performance and 

through final payment). 

* * * * * 

[FR Doc. 2024–26062 Filed 11–8–24; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket No. FAR–2024–0051, Sequence No. 

6] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2025–01; 

Small Entity Compliance Guide 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Small Entity Compliance Guide 

(SECG). 

SUMMARY: This document is issued 

under the joint authority of DoD, GSA, 

and NASA. This Small Entity 

Compliance Guide has been prepared in 

accordance with section 212 of the 

Small Business Regulatory Enforcement 

Fairness Act of 1996. It consists of a 

summary of the rules appearing in 

Federal Acquisition Circular (FAC) 

2025–01, which amends the Federal 

Acquisition Regulation (FAR). 

Interested parties may obtain further 

information regarding these rules by 

referring to FAC 2025–01, which 

precedes this document. 

DATES: November 12, 2024. 

ADDRESSES: The FAC, including the 

SECG, is available at https://

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact the 

analyst whose name appears in the table 

below. Please cite FAC 2025–01 and the 

FAR Case number. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat Division at 202–501–4755 or 

GSARegSec@gsa.gov. An asterisk (*) 

next to a rule indicates that a regulatory 

flexibility analysis has been prepared. 

RULES LISTED IN FAC 2025–01 

Item Subject FAR case Analyst 

*I ........ Prohibition on Unmanned Aircraft Systems from Covered Foreign Entities ............................................. 2024–002 Collins. 

*II ....... Clarification of System for Award Management Preaward Registration Requirements ........................... 2023–018 Collins. 

SUPPLEMENTARY INFORMATION: 

Summaries for each FAR rule follow. 

For the actual revisions and/or 

amendments made by these FAR rules, 

refer to the specific item numbers and 

subjects set forth in the documents 

following these item summaries. FAC 

2025–01 amends the FAR as follows: 

Item I—Prohibition on Unmanned 

Aircraft Systems From Covered Foreign 

Entities (FAR Case 2024–002) 

This interim rule amends the FAR to 

implement a prohibition on procuring, 

operating, or using Federal funds on, 

unmanned aircraft systems (e.g., drones) 

that are manufactured or assembled by 

an American Security Drone Actcovered foreign entity. This rule 

implements the American Security 

Drone Act of 2023 (subtitle B, title XVIII 

of the National Defense Authorization 

Act for Fiscal Year 2024, Pub. L. 118– 

31, 41 U.S.C. 3901 note prec.). This rule 

applies to all solicitations and contracts, 

including contracts at or below the 

micro-purchase threshold and to 

contracts for commercial products 

(including commercially available offthe-shelf items) or for commercial 

services. The change is not expected to 

have a significant economic impact on 

a substantial number of small entities. 

This interim rule is being implemented 

as a national security measure to protect 

sensitive Government information and 

operations. 


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