FAR 52.225-25 — Prohibition on Contracting with Entities Engaging in Certain Activities or Transactions Relating to Iran
Prohibits federal contractors from engaging in certain activities or transactions relating to Iran and requires offerors to certify their position. Part of broader Iran sanctions compliance framework.
When This Clause Applies
Required in all federal contracts above the micro-purchase threshold.
What This Means for Contractors
Offerors must certify they do not engage in prohibited Iran-related activities. False certification triggers contract termination and potential debarment plus criminal exposure under Iran sanctions law.
Common Pitfalls
- 1Inadequate screening of subcontractors and supply chain
- 2Outdated certifications after a merger or acquisition introduces new exposure
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