Implementation Of CISADA: New FAR Requirements

Effective September 29, 2010, the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (“FAR Councils”) issued an interim rule amending the FAR to implement sections of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (“CISADA”), signed into law on July 1, 2010. 75 Fed. Reg. 60254 (Sept. 29, 2010).

Certification Section 102 of CISADA requires that offerors for a government contract certify that neither the offeror, nor any person owned or controlled by the offeror, engages in activity for which sanctions may be imposed under section 5 of the Iran Sanctions Act of 1996, as amended. The sanctionable activity includes:

Investment in Iran’s petroleum production: Knowingly making an investment of $20 million or more (including by increments of at least $5 million within twelve months) that directly and significantly contributes to the enhancement of Iran’s ability to develop petroleum resources is prohibited.

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