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DoD Final Rule Sets Criteria for Waivers of Sudan Contracting Restrictions

The Department of Defense1 has issued a final rule, effective December 2, 2011, amending the Federal Acquisition Regulation to revise the prohibition on contracting with entities that conduct restricted business operations in Sudan. The final rule adds criteria that a government agency must address when applying to the President for a waiver of the prohibition on awarding a contract to a contractor that conducts restricted business operations in Sudan. The rule also describes the consultation process the Office of Federal Procurement Policy (OFPP) will use in support of the waiver request review.

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Waiver Requests Must Explain Why Product/Service Must Be Procured, Etc.

All waiver requests must clearly explain why the product or service must be procured from the offeror for which the waiver is requested and why it is in the national interest to waive the statutory prohibition against contracting with an offeror that conducts restricted business operations in Sudan. In addition, the waiver request must address any humanitarian efforts engaged in by the offeror, the human rights impact of doing business with that offeror, and the extent of the offeror’s business operations in Sudan.

(OFPP will be required to consult with the President’s National Security Council, Office of African Affairs and the Department of State Sudan Office and Sanctions Office on foreign policy matters relevant to the waiver request and include this information in the recommendation to the President. Both individual and class waiver requests will be considered for a specific contract or class of contracts.)

(See ITT’s Online Archives 10061045 for summary of DoD submitting the proposed rule to OMB for approval.)

1DoD, General Services Administration (GSA) and National Aeronautics and Space Administration (NASA) all issued the final rule.

DoD contact - Cecelia Davis (202) 219--0202

(FR Pub 11/02/11, D/N 2010--0105)