12/15/2014 12:00 AM
Effective Date: December 15, 2014
This interim rule amends the FAR language that addresses the continuing Government wide statutory prohibition on the use of appropriated funds for contracts with any foreign incorporated entity that is an inverted domestic corporation (under section 835 of the Homeland Security Act of 2002 (codified at 6 U.S.C. 395).
- An inverted domestic corporation is an incorporated business entity or partnership formally based in the United States, but has since moved to a foreign country (to include subsidiaries of parent corporations), as further defined at FAR 9.108-1.
- Amends FAR 9.108 to further clarify when a corporation is covered under the prohibition.
- Amends FAR 9.108–2, 9.108–3, and 9.108–5 to reflect the ongoing nature of the prohibition for as long as Congress continues to extend the prohibition in its current form through subsequent appropriations.
- Prohibits CO’s from awarding contracts using appropriated to any foreign incorporated entity that is treated as an inverted domestic corporation or to any subsidiary of such an entity. The exceptions are at FAR 9.108-2