Rule2025-16206

Defense Federal Acquisition Regulation Supplement: Preventing Conflicts of Interest for Certain Consulting Services (DFARS Case 2024-D007)

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
August 25, 2025
Effective
October 24, 2025

Issuing agencies

Defense DepartmentDefense Acquisition Regulations System

Abstract

DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2024, which prohibits contracting officers from awarding contracts assigned certain North American Industry Classification System codes to offerors holding contracts that involve consulting services with certain covered foreign entities.

Full Text

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<title>Federal Register, Volume 90 Issue 162 (Monday, August 25, 2025)</title>
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[Federal Register Volume 90, Number 162 (Monday, August 25, 2025)]
[Rules and Regulations]
[Pages 41487-41491]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16206]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 209, 212, 237, and 252

[Docket DARS-2024-0029]
RIN 0750-AM04


Defense Federal Acquisition Regulation Supplement: Preventing 
Conflicts of Interest for Certain Consulting Services (DFARS Case 2024-
D007)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement a section of the 
National Defense Authorization Act for Fiscal Year 2024, which 
prohibits contracting officers from awarding contracts assigned certain 
North American Industry Classification System codes to offerors holding 
contracts that involve consulting services with certain covered foreign 
entities.

DATES: Effective October 24, 2025.

FOR FURTHER INFORMATION CONTACT: Jon Snyder, telephone 703-945-5341.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD published a proposed rule in the Federal Register at 89 FR 
79013 on September 26, 2024, to implement section 812 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2024 (Pub. L. 
118-31). Section 812 prohibits the award of contracts assigned a North 
American Industry Classification System (NAICS) code beginning with 
5416 (e.g., management, scientific, and technical consulting services) 
to offerors who hold contracts that involve consulting services with 
certain covered foreign entities. Four respondents submitted public 
comments in response to the proposed rule.

II. Discussion and Analysis

    DoD reviewed the public comments in the development of the final 
rule. A discussion of the comments and the changes made to the rule as 
a result of those comments is provided, as follows:

A. Summary of Significant Changes From the Proposed Rule

    The following significant change from the proposed rule is made in 
the final

[[Page 41488]]

rule. The final rule text in paragraph (c)(1)(i) and (ii) of the 
provision at DFARS 252.209-7012 is amended to clarify that the 
certification is for contracts or subcontracts that involve consulting 
services, which is consistent with the prohibition.

B. Analysis of Public Comments

1. Support for the Rule
    Comment: A respondent expressed support for the rule.
    Response: DoD acknowledges the respondent's support for the rule.
2. Clarifications
    Comment: A respondent indicated that it is unclear if the proposed 
rule definition of ``covered foreign entity'' applies to a foreign 
entity's subsidiaries or affiliates. The respondent recommended that 
the proposed rule specify that ``covered foreign entity'' only applies 
to those listed entities, subsidiaries, and/or affiliates of the 
covered foreign entity. Another respondent recommended DoD establish a 
single online repository for all covered foreign entities.
    Response: The text at DFARS 209.572(c) and in paragraph (a) of the 
provision at DFARS 252.209.7012, Prohibition Relating to Conflicts of 
Interest in Consulting Services-Certification, addresses the 
prohibition regarding subsidiaries and affiliates of covered foreign 
entities; therefore, it is not necessary to amend the definition. 
Although DoD acknowledges the respondent's concern, it is not possible 
to establish a single online repository of covered foreign entities, as 
the lists of such entities are compiled and maintained by different 
departments and agencies and are subject to change.
    Comment: A respondent indicated that the definition of ``consulting 
services'' is unclear due to the use of the words ``the term'' in the 
definition. Specifically, it is ambiguous whether ``the term'' 
referenced in the definition is the broader ``consulting services'' or 
the more specific ``advisory and assistance services''. The respondent 
also indicated that the definition of ``consulting services'' is too 
broad and should include an exception for nonprofit organizations whose 
primary purpose is to conduct research, indicating that throughout the 
Federal Acquisition Regulation (FAR) nonprofit research organizations 
qualify for exceptions and particularized requirements.
    Response: The definition of ``consulting services'' at DFARS 
209.572(b) and in paragraph (a) of the provision at DFARS 252.209.7012 
is revised to replace ``the term'' with ``consulting services''. This 
rule implements a statutory requirement, which does not provide for an 
exception for nonprofit research organizations. Therefore, DoD cannot 
provide such an exception.
    Comment: A couple of respondents recommended changes to the 
provision at DFARS 252.209.70XX. A respondent indicates the proposed 
rule does not provide sufficient information regarding what is to be 
included in a conflict-of-interest mitigation plan. Another respondent 
recommends that the text be amended to allow an offeror's 
administrative contracting officer (ACO) to review and approve the 
conflict-of-interest mitigation plan.
    Response: The final rule text in paragraph (d)(1) of the provision 
at DFARS 252.209-7012 already specifies that the conflict-of-interest 
mitigation plan shall be auditable by a contract oversight entity and 
provides a list of what the offeror's conflict-of-interest mitigation 
plan must include. As such, the contracting officer will review the 
plan and may conduct discussions or negotiate the contents of the plan 
with the offeror prior to final acceptance. In accordance with FAR 
42.2, contracting officers may assign post-award contract 
administration functions to an ACO. The review and approval of a 
conflict-of-interest mitigation plan is a pre-award function; 
therefore, it cannot be delegated to the ACO.
    Comment: A respondent recommended adding the word ``both'' before 
the items listed at DFARS 209.57X(c) to make it clear that the 
prohibition only applies to an offeror that has a potential conflict of 
interest and does not have a conflict-of-interest mitigation plan.
    Response: DoD concurs with the recommendation. The final rule text 
at DFARS 209.572(c) and in paragraph (b) of the provision at DFARS 
252.209.7012 is revised to add the word ``both''.
    Comment: A couple of respondents recommended the proposed rule be 
amended to reflect that the certification is based on the best 
knowledge of the offeror.
    Response: The wording of the certification is based on section 812, 
which requires an offeror to certify that neither it nor its 
subsidiaries or affiliates, holds a contract that involves consulting 
services with one or more covered foreign entities. Therefore, DoD 
cannot adopt this recommendation.
    Comment: A couple of respondents recommended changing the provision 
at DFARS 252.209-70XX to address the potential for previously 
undisclosed conflicts of interest that may arise during contract 
performance. Another respondent recommends the text at DFARS 209.57X(c) 
and in paragraphs (b) and (c) of the provision at DFARS 252.209-70XX 
clarify whether or not the prohibition and certification requirements 
apply to an offeror that is a subcontractor on another contract 
involving consulting services with a covered foreign entity.
    Response: Section 812 does not require post-award monitoring of the 
``covered foreign entity'' lists by a contractor that was not required 
to submit a conflict-of-interest mitigation plan. However, paragraph 
(d) of the provision at DFARS 252.209-7012 does require that a 
conflict-of-interest mitigation plan include procedures for addressing 
unmitigated conflicts of interest.
    Section 812 does not specify that the prohibition and certification 
requirements apply to an offeror that is a subcontractor on a contract 
with a covered foreign entity. However, the purpose of the statute is 
to prevent DoD contract awardees, and their subsidiaries or affiliates, 
from holding a contract involving consulting services with one or more 
covered foreign entities without a conflict-of-interest mitigation 
plan. As such, to meet the intent of the statute, the final rule text 
at DFARS 209.572(c)(1) and (d)(1), and paragraphs (b), (c)(1)(i) and 
(ii) of the provision at DFARS 252.209-7012 is amended to include 
subcontracts.
    Comment: A respondent recommended the text in paragraph (d)(1)(i) 
of the provision at DFARS 252.209-70XX be amended to clarify that the 
offeror's restriction to identify the name of a covered foreign entity 
shall not obligate the contracting officer to disapprove the offeror's 
conflict-of-interest mitigation plan.
    Response: Paragraph (d)(1)(i) of the provision at DFARS 252.209-
7012 requires an offeror to identify an entity as ``a covered foreign 
entity'' if the offeror is unable to identify one or more covered 
foreign entities due to confidentiality obligations. As such, an 
offeror's compliance with the requirements of the provision would not 
be a basis for the contracting officer to disapprove an offeror's 
conflict-of-interest mitigation plan.
    Comment: A respondent recommended including definitions of 
avoiding, neutralizing, and mitigating.
    Response: In accordance with FAR 1.108(a), undefined words retain 
their common dictionary meaning. Therefore, it is not necessary to 
define these terms in this rule.

[[Page 41489]]

C. Other Changes

    The final rule text in paragraph (d) of the provision at DFARS 
252.209-7012 is amended to clarify that the approved conflict-of-
interest mitigation plan will be incorporated into the contract. The 
definition of ``covered foreign entity'' in paragraph (a) of the 
provision is amended to correct capitalization.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT), for Commercial Products (Including Commercially 
Available Off-the-Shelf (COTS) Items), and for Commercial Services

    The provision at DFARS 252.209.7012, Prohibition Relating to 
Conflicts of Interest in Consulting Services-Certification, is 
prescribed at DFARS 209.572(e) for use in solicitations, including 
solicitations using FAR part 12 procedures for the acquisition of 
commercial services, assigned a NAICS code beginning with 5416. The 
provision will not be included in solicitations for the acquisition of 
commercial products including COTS items. Consistent with the analysis 
that DoD provided in the proposed rule with regard to the application 
of the requirements of section 812 of the NDAA for FY 2024, DoD has 
made the determination to apply the statute, as implemented in the 
provision at DFARS 252.209.7012 to contracts at or below the SAT and to 
the acquisition of commercial services, as defined at FAR 2.101. The 
rule will not apply to commercial products including COTS items.

IV. Expected Impact of the Rule

    This rule will prohibit contracting officers from awarding 
contracts, assigned a NAICS code beginning with 5416, to offerors who 
hold contracts that involve consulting services with covered foreign 
entities, unless the offeror has an approved conflict-of-interest 
mitigation plan. NAICS codes beginning with 5416 are for management, 
scientific, and technical consulting services.
    Offerors responding to solicitations assigned those NAICS codes 
will be required to certify whether or not they hold contracts that 
involve consulting services with one or more covered foreign entities 
and whether they maintain a conflict-of-interest mitigation plan. If an 
offeror certifies that they do hold such a contract, the offeror may 
consult with the contracting officer and submit a conflict-of-interest 
mitigation plan that is auditable by a contract oversight entity in 
addition to other requirements. If the offeror's plan is approved, the 
contracting officer will incorporate the plan into the resulting 
contract. If the offeror does not submit a conflict-of-interest 
mitigation plan, the contracting officer may determine the award is in 
the best interests of the United States with appropriate approval. In 
addition, the agency will be required to submit to Congress any use of 
such waiver authority.
    DoD expects this rule to prevent adversaries from accessing 
sensitive information that may cause harm to the United States.

V. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all 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, as amended.

VI. Executive Order 14192

    This final rule is not subject to E.O. 14192, because the final 
rule is not a significant regulatory action under E.O. 12866.

VII. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the interim or final rule with the form, Submission of Federal Rules 
under the Congressional Review Act, to the U.S. Senate, the U.S. House 
of Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. The Office of 
Information and Regulatory Affairs has determined that this rule is not 
a major rule as defined by 5 U.S.C. 804.

VIII. Regulatory Flexibility Act

    A final regulatory flexibility analysis has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
and is summarized as follows:
    This rule is necessary to implement section 812 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2024 (Pub. L. 
118-31). The objective of the rule is to implement section 812, which 
prohibits contracting officers from awarding contracts, assigned a 
North American Industry Classification System (NAICS) code beginning 
with 5416, to an offeror who holds a contract that involves consulting 
services with one or more covered foreign entities. NAICS codes 
beginning with 5416 are for management, scientific, and technical 
consulting services. Section 812 allows an offeror to submit a 
conflict-of-interest mitigation plan and allows the prohibition to be 
waived under certain circumstances. This rule specifies that an 
approved conflict-of-interest mitigation plan will be incorporated into 
the resultant contract.
    There were no significant issues raised by the public.
    According to data obtained from the Procurement Integrated 
Enterprise Environment for the last three fiscal years, DoD awarded 
contracts with NAICS codes starting with 5416 to unique small entities 
as follows: 829 in FY 2022, 862 in FY 2023, and 867 in FY 2024, for an 
average of 853 per fiscal year. However, DoD cannot determine how many 
of those contracts awarded to small entities involve potential 
conflicts of interest.
    This rule imposes new reporting, recordkeeping, or other compliance 
requirements for small entities. The new solicitation provision at 
DFARS 252.209-7012, Notice of Prohibition Relating to Conflicts of 
Interest in Consulting Services--Certification, requires offerors to 
certify whether they or their subsidiaries or affiliates hold a 
contract for consulting services with one or more covered entities and 
whether they maintain a conflict-of-interest mitigation plan that meets 
certain criteria listed in the solicitation provision.
    There are no known alternatives that would accomplish the stated 
objectives of the applicable statute.

IX. Paperwork Reduction Act

    This final rule contains information collection requirements that 
have been approved by the Office of Management and Budget under the 
Paperwork Reduction Act (44 U.S.C. chapter 35). This information 
collection requirement has been assigned OMB Control Number 0750-0009, 
Preventing Conflicts of Interest for Certain Consulting Services.

[[Page 41490]]

List of Subjects in 48 CFR Parts 209, 212, 237, and 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, the Defense Acquisition Regulations System amends 48 CFR 
parts 209, 212, 237, and 252 as follows:

0
1. The authority citation for parts 209, 212, 237, and 252 continues to 
read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 209--CONTRACTOR QUALIFICATIONS

0
2. Add section 209.503-70 to subpart 209.5 to read as follows:


209.503-70  Waiver.

    Notwithstanding FAR 9.503, for consulting services, as defined at 
209.572(b), the waiver approval authority is the Secretary of Defense 
and the following officials, without power of delegation below an 
official appointed by the President and confirmed by the Senate:
    (a) The Under Secretary of Defense (Acquisition and Sustainment).
    (b) The assistant secretaries of the military departments. (See PGI 
209.503-70.)

0
3. Add section 209.572 to subpart 209.5 to read as follows:


209.572  Conflicts of interest in certain consulting services.

    (a) Scope. (1) This section implements section 812 of the National 
Defense Authorization Act for Fiscal Year 2024 (Pub. L. 118-31).
    (2) To the extent that this section is inconsistent with FAR 
subpart 9.5, this section takes precedence.
    (b) Definitions. As used in this section--
    Consulting services means advisory and assistance services, except 
that ``consulting services'' does not include the provision of products 
or services related to--
    (i) Compliance with legal, audit, accounting, tax, reporting, or 
other requirements of the laws and standards of countries; or
    (ii) Participation in a judicial, legal, or equitable dispute 
resolution proceeding.
    Contract oversight entity means any of the following:
    (i) The contracting officer.
    (ii) The contracting officer's representative.
    (iii) The Defense Contract Management Agency.
    (iv) The Defense Contract Audit Agency.
    (v) The DoD Office of Inspector General or any subcomponent of that 
office.
    (vi) The Government Accountability Office.
    Covered contract means a DoD contract involving consulting 
services.
    Covered foreign entity means any of the following:
    (i) The government of the People's Republic of China, the Chinese 
Communist Party, the People's Liberation Army, the Ministry of State 
Security, or other security service or intelligence agency of the 
People's Republic of China.
    (ii) The government of the Russian Federation or any entity 
sanctioned by the Secretary of the Treasury under Executive Order 
13662, Blocking Property of Additional Persons Contributing to the 
Situation in Ukraine.
    (iii) The government of any country if the Secretary of State 
determines that such government has repeatedly provided support for 
acts of international terrorism pursuant to any of the following:
    (A) Section 1754(c)(1)(A) of the Export Control Reform Act of 2018 
(50 U.S.C. 4318(c)(1)(A)).
    (B) Section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 
2371).
    (C) Section 40 of the Arms Export Control Act (22 U.S.C. 2780).
    (D) Any other provision of law.
    (iv) Any entity included on any of the following lists maintained 
by the Department of Commerce (see the Export Administration 
Regulations at 15 CFR subchapter C):
    (A) The Entity List in supplement no. 4 to 15 CFR part 744.
    (B) The Denied Persons List as described in 15 CFR 764.3(a)(2).
    (C) The Unverified List in supplement no. 6 to 15 CFR part 744.
    (D) The Military End User List in supplement no. 7 to 15 CFR part 
744.
    (v) Any entity identified by the Secretary of Defense pursuant to 
section 1237(b) of the National Defense Authorization Act for Fiscal 
Year 1999 (Pub. L. 105-261; 50 U.S.C. 1701 note).
    (vi) Any entity on the Non-Specially Designated Nationals Chinese 
Military-Industrial Complex Companies List maintained by the Office of 
Foreign Assets Control of the Department of the Treasury under 
Executive Order 14032, Addressing the Threat From Securities 
Investments That Finance Certain Companies of the People's Republic of 
China.
    (c) Prohibition. The contracting officer shall not award a contract 
assigned a North American Industry Classification System (NAICS) code 
beginning with 5416 that involves consulting services to an offeror 
that both--
    (1) Cannot certify that neither the offeror nor its subsidiaries or 
affiliates hold a contract or subcontract involving consulting services 
with one or more covered foreign entities; and
    (2) Does not have a conflict-of-interest mitigation plan that is 
auditable by a contract oversight entity and approved by the 
contracting officer.
    (d) Waiver. (1) If the prospective contractor(s) certified, in 
response to paragraph (c) of the provision at 252.209-7012, Prohibition 
Relating to Conflicts of Interest in Consulting Services--
Certification, that it or its subsidiaries or affiliates hold a 
contract or subcontract for consulting services with one or more 
covered foreign entities and the offeror has not submitted an 
acceptable conflict-of-interest mitigation plan, the contracting 
officer shall--
    (i) Notify the offeror of the potential withholding of award due to 
the unmitigated conflict of interest; and
    (ii) Specify that the offeror has 10 days to respond to the 
notification.
    (2) If the contracting officer determines that it is in the best 
interests of the United States to award the contract, notwithstanding 
the conflict of interest, the contracting officer shall request a 
waiver in accordance with 209.503-70.
    (3) The prohibition may be waived on a case-by-case basis if an 
official listed at 209.503-70 determines that a waiver is necessary for 
national security purposes.
    (4) The contracting officer shall include the waiver request and 
the waiver in the contract file.
    (5) Not later than 30 days after approval of the waiver, the agency 
shall provide written notification to the House and Senate Armed 
Services Committees of the use of such waiver authority. The 
notification shall include--
    (i) The specific justification for providing the waiver;
    (ii) The number of offerors that did not require a waiver;
    (iii) The number of offerors that were granted a waiver;
    (iv) Identification of the covered foreign entity that is the 
subject of the waiver; and
    (v) The total dollar value of the covered contract.
    (e) Solicitation provision. Use the provision at 252.209-7012, 
Prohibition Relating to Conflicts of Interest in Consulting Services--
Certification, in solicitations, including solicitations using FAR part 
12 procedures for the acquisition of commercial services, assigned a 
NAICS code beginning with 5416. Do not include the provision in

[[Page 41491]]

solicitations for the acquisition of commercial products.

PART 212--ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL 
SERVICES

0
4. Amend section 212.301 by revising paragraph (f)(iv) to read as 
follows:


212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial products and commercial services.

* * * * *
    (f) * * *
    (iv) Part 209--Contractor Qualifications.
    (A) Use the provision at 252.209-7011, Representation for 
Restriction on the Use of Certain Institutions of Higher Education, as 
prescribed in 209.170-4, to comply with section 1062 of the National 
Defense Authorization Act for Fiscal Year 2021 (Pub. L. 116-283).
    (B) Use the provision at 252.209-7012, Prohibition Relating to 
Conflicts of Interest in Consulting Services--Certification, as 
prescribed in 209.572(e), to comply with section 812 of the National 
Defense Authorization Act for Fiscal Year 2024 (Pub. L. 118-31).
* * * * *

PART 237--SERVICE CONTRACTING

0
5. Add section 237.271 to subpart 237.2 to read as follows:


237.271  Consulting services.

    See 209.572 for requirements related to conflicts of interest in 
consulting services.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
6. Add section 252.209-7012 to subpart 252.2 to read as follows:


252.209-7012  Prohibition Relating to Conflicts of Interest in 
Consulting Services--Certification.

    As prescribed in 209.572(e), use the following provision:

Prohibition Relating to Conflicts of Interest in Consulting Services--
Certification (Oct 2025)

    (a) Definitions. As used in this provision--
    Consulting services means advisory and assistance services, 
except that ``consulting services'' does not include the provision 
of products or services related to--
    (1) Compliance with legal, audit, accounting, tax, reporting, or 
other requirements of the laws and standards of countries; or
    (2) Participation in a judicial, legal, or equitable dispute 
resolution proceeding.
    Contract oversight entity means any of the following:
    (1) The Contracting Officer.
    (2) The Contracting Officer's Representative.
    (3) The Defense Contract Management Agency.
    (4) The Defense Contract Audit Agency.
    (5) The DoD Office of Inspector General or any subcomponent of 
that office.
    (6) The Government Accountability Office.
    Covered contract means a DoD contract involving consulting 
services.
    Covered foreign entity means any of the following:
    (1) The government of the People's Republic of China, the 
Chinese Communist Party, the People's Liberation Army, the Ministry 
of State Security, or other security service or intelligence agency 
of the People's Republic of China.
    (2) The government of the Russian Federation or any entity 
sanctioned by the Secretary of the Treasury under Executive Order 
13662, Blocking Property of Additional Persons Contributing to the 
Situation in Ukraine.
    (3) The government of any country, if the Secretary of State 
determines that such government has repeatedly provided support for 
acts of international terrorism, pursuant to any of the following:
    (i) Section 1754(c)(1)(A) of the Export Control Reform Act of 
2018 (50 U.S.C. 4318(c)(1)(A)).
    (ii) Section 620A of the Foreign Assistance Act of 1961 (22 
U.S.C. 2371).
    (iii) Section 40 of the Arms Export Control Act (22 U.S.C. 
2780).
    (iv) Any other provision of law.
    (4) Any entity included on any of the following lists maintained 
by the Department of Commerce (see the Export Administration 
Regulations at 15 CFR subchapter C):
    (i) The Entity List in supplement no. 4 to 15 CFR part 744.
    (ii) The Denied Persons List as described in 15 CFR 764.3(a)(2).
    (iii) The Unverified List in supplement no. 6 to 15 CFR part 
744.
    (iv) The Military End User List in supplement no. 7 to 15 CFR 
part 744.
    (5) Any entity identified by the Secretary of Defense pursuant 
to section 1237(b) of the National Defense Authorization Act for 
Fiscal Year 1999 (Pub. L. 105-261; 50 U.S.C. 1701 note).
    (6) Any entity on the Non-Specially Designated Nationals Chinese 
Military-Industrial Complex Companies List maintained by the Office 
of Foreign Assets Control of the Department of the Treasury under 
Executive Order 14032, Addressing the Threat From Securities 
Investments That Finance Certain Companies of the People's Republic 
of China.
    (b) Prohibition. DoD cannot award to the Offeror a contract 
assigned a North American Industry Classification System code 
beginning with 5416 if the Offeror--
    (1) Cannot certify that neither the Offeror nor any of its 
subsidiaries or affiliates hold a contract or subcontract that 
involves consulting services with one or more covered foreign 
entities; and
    (2) Does not maintain a conflict-of-interest mitigation plan as 
described in paragraph (d) of this provision.
    (c) Certification. The Offeror certifies that--
    (1)(i) It does [ ] does not [ ] hold a contract or subcontract 
that involves consulting services with one or more covered foreign 
entities; and
    (ii) Its subsidiaries or affiliates do [ ] do not [ ] hold a 
contract or subcontract that involves consulting services with one 
or more covered foreign entities; and
    (2) It does [ ] does not [ ] maintain a conflict-of-interest 
mitigation plan described in paragraph (d) of this provision.
    (d) Conflict-of-interest mitigation plan. If the Offeror 
answered in the affirmative in paragraphs (c)(1) and (2) of this 
provision, then the Offeror shall submit its conflict-of-interest 
mitigation plan to the Contracting Officer for approval. The Offeror 
may contact the Contracting Officer for guidance on submitting the 
Offeror's conflict-of-interest mitigation plan.
    (1) The Offeror's conflict-of-interest mitigation plan shall be 
auditable by a contract oversight entity and shall include--
    (i) An identification, unless otherwise prohibited by law or 
regulation, of any covered contracts of the Offeror or its 
subsidiaries or affiliates with a covered foreign entity. If the 
Offeror is unable to identify one or more covered foreign entities 
due to confidentiality obligations, the Offeror shall identify such 
entities as a covered foreign entity;
    (ii) A written analysis, including a course of action for 
avoiding, neutralizing, or mitigating the actual or potential 
conflict of interest of such a covered contract;
    (iii) A description of the procedures by which the Offeror or 
its subsidiaries or affiliates will ensure that individuals who will 
perform the scope of a covered contract will not, for the duration 
of such contract, also provide any consulting services to any 
covered foreign entity; and
    (iv) A description of the procedures by which the Offeror or its 
subsidiaries or affiliates will submit to the contract oversight 
entities a notice of an unmitigated conflict of interest with 
respect to a covered contract within 15 days of determining that 
such a conflict has arisen.
    (2) The Contracting Officer will incorporate the Offeror's 
approved conflict-of-interest mitigation plan into any contract 
awarded to the Offeror resulting from this solicitation.


(End of provision)

[FR Doc. 2025-16206 Filed 8-22-25; 8:45 am]
BILLING CODE 6001-FR-P


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Indexed from Federal Register on August 25, 2025.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.