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DFARS Clause ACTIVE

252.209-7004

Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism.
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Effective Date
MAY 2019
Active Deviations
2
Versions
2 (since 2016-12-22)
DEV
This clause is modified by 2 active class deviations
  • 2026-O0042 — DFARS RFO Implementation (Part 9)
    Add clause 252.209-7004
  • 2026-O0002 — DFARS RFO Implementation (Part 1)
View per-deviation details →
252.209-7004 Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism.

As prescribed in 209.409, use the following clause:

Subcontracting With Firms That Are Owned or Controlled by the Government of a Country That Is a State Sponsor of Terrorism (MAY 2019)

(a) Unless the Government determines that there is a compelling reason to do so, the Contractor shall not enter into any subcontract in excess of the threshold specified in Federal Acquisition Regulation 9.405-2(b) on the date of subcontract award with a firm, or a subsidiary of a firm, that is identified in the Exclusions section of the System for Award Management System (SAM Exclusions) as being ineligible for the award of Defense contracts or subcontracts because it is owned or controlled by the government of a country that is a state sponsor of terrorism.

(b) A corporate officer or a designee of the Contractor shall notify the Contracting Officer, in writing, before entering into a subcontract with a party that is identified, in SAM Exclusions, as being ineligible for the award of Defense contracts or subcontracts because it is owned or controlled by the government of a country that is a state sponsor of terrorism. The notice must include the name of the proposed subcontractor and the compelling reason(s) for doing business with the subcontractor notwithstanding its inclusion in SAM Exclusions.

(End of clause)

[79 FR 73490, Dec. 11, 2014, as amended at 80 FR 36905, June 26, 2015; 84 FR 25187, May 31, 2019]

Change History

Date Authority Type Summary
2026-02-17 2026-O0042 RFO_CLAUSE_MODIFIED R-DFARS 252.209-7004 Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism updated from deviation 2026-O0042.
2026-02-17 2026-O0042 RFO_CLAUSE_MODIFIED R-DFARS 252.209-7004 Subcontracting with Firms that are Owned or Controlled by the updated from deviation 2026-O0042.
2026-02-17 2026-O0042 RFO_CLAUSE_MODIFIED R-DFARS 252.209-7004 Subcontracting with Firms that are Owned or Controlled by the updated from deviation 2026-O0042.
2026-02-01 2026-O0002 RFO_CLAUSE_ADDED R-DFARS 252.209-7004 0704-0187 added from deviation 2026-O0002.
RFO
Prescription superseded under the RFO

The prescription shown below is from the codified eCFR. Under the RFO, the prescribing section may have been revised, relocated or reserved. See the deviation memorandum for the current prescription authority.

View deviation: 2026-O0042 → · View deviation: 2026-O0002 →

R-DFARS Prescription Source

This clause is prescribed in the R-DFARS by the following deviation:

  • 2026-O0042 — DFARS RFO Implementation (Part 9) (DFARS Part 209)
    Add clause 252.209-7004
209.409
Use the clause at 252.209-7004, Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism, in solicitations and contracts with a value of $200,000 or more.
Prescription data sourced from eCFR as of 2026-06-15 02:15 UTC. Cross-references within the prescription are not resolved automatically.

Regulatory Stack

The layers of regulation that govern this clause, from the FAR prescription through agency-specific supplements and any active deviations.

R-DFARS R-DFARS Prescription Per Deviation 2026-O0042 (DFARS Part 209)
2026-O0042: DFARS RFO Implementation (Part 9) — DFARS Part 209

View Deviation 2026-O0042 →

DFARS DFARS Supplement (eCFR) ⚠ May be superseded by RFO 209.409
Use the clause at 252.209-7004, Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism, in solicitations and contracts with a value of $200,000 or more.

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Version History

Version history is sourced from the codified eCFR. Changes published only as class deviations or by the Revolutionary FAR Overhaul do not appear here until they are incorporated into the eCFR. For RFO-driven changes see the RFO Version tab and any active deviations cited above.

2 versions tracked from 2016-12-22 to 2019-05-31.
MAY 2019 May 31, 2019 CURRENT SUBSTANTIVE
Removed in this version
Added in this version
Unchanged
DEC 2016 (previous)
MAY 2019 (current)
14 added, 1 removed
(a)
(a) Unless the Government determines that there is a compelling reason to do so, the Contractor shall not enter into any subcontract in excess of $35,000 with a firm, or a subsidiary of a firm, that is identified in the Exclusions section of the System for Award Management System (SAM Exclusions) as being ineligible for the award of Defense contracts or subcontracts because it is owned or controlled by the government of a country that is a state sponsor of terrorism.
(a)
(a) Unless the Government determines that there is a compelling reason to do so, the Contractor shall not enter into any subcontract in excess of the threshold specified in Federal Acquisition Regulation 9.405-2(b) on the date of subcontract award with a firm, or a subsidiary of a firm, that is identified in the Exclusions section of the System for Award Management System (SAM Exclusions) as being ineligible for the award of Defense contracts or subcontracts because it is owned or controlled by the government of a country that is a state sponsor of terrorism.
DEC 2016 December 22, 2016 SUBSTANTIVE
Earliest version available from the eCFR

Active Class Deviations

DFARS RFO Implementation (Part 9) Add clause 252.209-7004
MODIFIED
DFARS RFO Implementation (Part 1) Modify clause 252.209-7004
MODIFIED
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