A recent interim rule, effective this month, amends the FAR by adding a new clause (FAR 52.240-1) for contractors regarding unmanned aircraft systems (UAS – drones). This clause prohibits procuring, operating, or using federal funds on drones made by certain foreign entities, mainly China.
The rule does not stop FASC-covered entities from providing parts to non-covered entities to assemble or manufacture UAS. Until December 22, 2025, the phased prohibition allows the continued use of previously acquired UAS identified as FASC-prohibited, and the operation of UAS in services where the UAS is not a deliverable (e.g., crop analysis for agricultural services). The FAR Council expects minimal impact on businesses, as alternative suppliers exist and are emerging.
For more details, see the blog post on WorkwithUSAID.gov.
