1. (a) The contracting officer shall not award a contract of $200,000 or more to a firm when a foreign government that is a state sponsor of terrorism owns or controls, either directly or indirectly, a significant interest in—

   1. (i) The firm;
   2. (ii) A subsidiary of the firm; or
   3. (iii) Any other firm that owns or controls the firm.
2. (b) For restrictions on subcontracting with a firm, or a subsidiary of a firm, that is identified by the Secretary of Defense as being owned or controlled by the government of a country that is a state sponsor of terrorism, see 209.405-2.

[79 FR 73489, Dec. 11, 2014, as amended at 90 FR 41486, Aug. 25, 2025]