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part52.dev Federal Acquisition Clause Monitor
FAR Clause

52.209-2

Prohibition on Contracting With Inverted Domestic Corporations—Representation.
View on acquisition.gov · View on eCFR.gov
Effective Date
NOV 2015
Active Deviations
Versions
1 (since 2017-01-01)
RFO
RFO Version Available

The Revolutionary FAR Overhaul has published a revised version of this clause. The RFO version supersedes the eCFR text below for contracts using the RFO model; see the RFO deviation for applicability.

View RFO version
52.209-2 Prohibition on Contracting With Inverted Domestic Corporations—Representation.

As prescribed in 9.108-5(a), insert the following provision:

Prohibition on Contracting With Inverted Domestic Corporations—Representation (NOV 2015)

(a)
Definitions. Inverted domestic corporation
and
subsidiary
have the meaning given in the clause of this contract entitled Prohibition on Contracting with Inverted Domestic Corporations (52.209-10).

(b) Government agencies are not permitted to use appropriated (or otherwise made available) funds for contracts with either an inverted domestic corporation, or a subsidiary of an inverted domestic corporation, unless the exception at 9.108-2(b) applies or the requirement is waived in accordance with the procedures at 9.108-4.

(c)
Representation.
The Offeror represents that—

(1) It □ is, □ is not an inverted domestic corporation; and

(2) It □ is, □ is not a subsidiary of an inverted domestic corporation.

(End of provision)

[76 FR 31414, May 31, 2011, as amended at 79 FR 74557, Dec. 15, 2014; 80 FR 38307, July 2, 2015]
9.108-5(a)
(a) Include the provision at 52.209-2, Prohibition on Contracting with Inverted Domestic Corporations-Representation, in each solicitation for the acquisition of products or services (including construction); and
Prescription data sourced from eCFR as of 2026-06-10 03:16 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.

RFO RFO Version Overhauled clause text
The Revolutionary FAR Overhaul publishes a revised version of this clause. See the RFO Version tab for the controlling authority under the RFO model.

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FAR FAR Prescription 9.108-5(a)
(a) Include the provision at 52.209-2, Prohibition on Contracting with Inverted Domestic Corporations-Representation, in each solicitation for the acquisition of products or services (including construction); and

View on acquisition.gov · View on eCFR.gov

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.

No version history available from eCFR.

RFO Version

Comparison of the codified eCFR text against the Revolutionary FAR Overhaul revision. Highlights show additions (green) and deletions (red, struck through).

Clause Text

Substantive changes. The RFO version differs materially from the eCFR text.
eCFR (codified)
RFO (implemented)
Unchanged
52.209-2 Prohibition on Contracting With Inverted Domestic Corporations-Representation.
eCFR (codified)
RFO (implemented)
1 added, 1 removed
As prescribed in 9.108-5(a), insert the following provision:
As prescribed in 9.108-6(a), insert the following provision:
3 added, 3 removed
Prohibition on Contracting With Inverted Domestic Corporations—Representation (NOV 2015)
Prohibition on Contracting with Inverted Domestic Corporations-Representation (Deviation Date)
3 added, 22 removed
(a)
(a) Definitions. Inverted domestic corporation and subsidiary have the meaning given in the clause of this contract entitled Prohibition on Contracting with Inverted Domestic Corporations (52.209-10).
(a)
(a) Definitions. As used in this clause—
22 added, 37 removed
(b)
(b) Government agencies are not permitted to use appropriated (or otherwise made available) funds for contracts with either an inverted domestic corporation, or a subsidiary of an inverted domestic corporation, unless the exception at 9.108-2(b) applies or the requirement is waived in accordance with the procedures at 9.108-4.
(b)
Inverted domestic corporation means a foreign incorporated entity that meets the definition of an inverted domestic corporation under 6 U.S.C. 395(b), applied in accordance with the rules and definitions of 6 U.S.C. 395(c).
15 added
Subsidiary means an entity in which more than 50 percent of the entity is owned—
7 added
(1)
(1)
(1) Directly by a parent corporation; or
8 added
(2)
(2)
(2) Through another subsidiary of a parent corporation.
48 added
(b)
(b)
(b) Government agencies are not permitted to use appropriated (or otherwise made available) funds for contracts with either an inverted domestic corporation, or a subsidiary of an inverted domestic corporation, unless the exception at 9.108-3(b) applies or the requirement is waived in accordance with the procedures at 9.108-5.
21 removed
[76 FR 31414, May 31, 2011, as amended at 79 FR 74557, Dec. 15, 2014; 80 FR 38307, July 2, 2015]

Prescription

Substantive changes. The RFO prescription differs materially from the eCFR prescription.
eCFR (codified)
RFO (implemented)
Unchanged
52.209-2 Prohibition on Contracting With Inverted Domestic Corporations-Representation.: Prescription
eCFR (codified)
RFO (implemented)
2 added, 3 removed
(a)
(a) Include the provision at 52.209-2, Prohibition on Contracting with Inverted Domestic Corporations-Representation, in each solicitation for the acquisition of products or services (including construction); and
(a)
(a) Include the provision at 52.209-2, Prohibition on Contracting with Inverted Domestic Corporations—Representation, in each solicitation for the acquisition of products or services (including construction).

Source: acquisition.gov RFO Part 52 · Prescribing Part 9

Related Clauses

Referenced by

52.204-8

References

52.209-10
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