OFFICE OF THE UNDER SECRETARY OF DEFENSE

3000 DEFENSE PENTAGON

WASHINGTON, DC 20301-3000

ACQUISITION.

TECHNOLOGY

AND LOGISTICS

(POLICY AND PROCUREMENT), ASA(ALT)

DEPUTY ASSISTANT SECRETARY OF THE NAVY

(ACQUISITION MANAGEMENT), ASN(RDA)

from the list of prohibited sources. The contracting officer must check the lists of entities and individuals subject to economic sanctions that are available on OFAC's website at http://www.treas.gov/ofac and may not acquire from such entities and individuals (FAR 25.70 1(b)).

The contracting officer is no longer authorized in unusual circumstances to acquire for use outside the United States supplies or services restricted by this section, unless specifically authorized by OFAC. However, OFAC has granted authority to Department of Defense personnel to make emergency acquisitions in direct support of U.S. or allied forces deployed in military contingency, humanitarian, or peacekeeping operations in a country or region subject to economic sanctions administered by OFAC (see

DFARS 225.701-70).

This deviation remains in effect until implemented in the Federal Acquisition Regulation, or is otherwise rescinded. My point of contact is Ms. Amy G. Williams at 703-602-0328 or via e-mail: amy.williams@osd.mil. ;

Class Deviation-Prohibited Sources Tracking Number 2003-00003

PART 25-FOREIGN ACQUISITION

Subpart 25.7--Prohibited Sources

(a) Except as authorized by the Office of Foreign Assets Control (OFAC) in the Department of the Treasury, agencies and their contractors and subcontractors must not acquire any supplies or services, if any Executive order administered by OFAC's regulations Set forth at 31 CFR Chapter V would prohibit such a transaction by a person subject to the jurisdiction of the United States.

(b) Except as authorized by OFAC, most transactions involving Cuba, Iran, Libya, and Sudan are prohibited, as are most imports into the United States from North Korea. In addition, lists of entities and individuals subject to economic sanctions are included in OFACs List of Specially Designated Nationals and Blocked Persons. More information about these restrictions as well as updates with respect to restrictions imposed after June 2003, is available in OFAC's regulations at 31 CFR Chapter V and/or on OFAC's website at http://www.treas.gov/ofac.

Refer questions concerning the restrictions in 25.70 1 to the-

Department of Treasury

Office of Foreign Assets Control

Washington, DC 20220

(Telephone (202) 622-2490)

Snbpart 25.11--Solicitation Provisions and Contract Clauses

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(a) Restrictions on certain foreign purchases. Insert the clause at 52.225-13, Restrictions on Certain Foreign Purchases, in solicitations and contracts with a value exceeding $2,500, $7,500 for acquisitions as described in 13.201(g)(l)(i), or $15,000 for acquisitions as described in 13.201(g)(l)(ii), unless an exception applies.

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PART 52- SOLJCITATION PROVISIONS ANI) CONTRACT CLAUSES

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As prescribed in 25 1103(a), insert the following clause:

RESTRICTIONS ON CERTAIN FOREIGN PURCHASES (JUNE 2003) (DEVIATION)

(a) Except as authorized by the Office of Foreign Assets Control (OFAC) in the Department of the Treasury, the Contractor shall not acquire, for use in the performance of this contract, any supplies or services, if any Executive order administered by OFAC, or OFAC's regulations set forth at 31 CFR Chapter V would prohibit such a transaction by a person subject to the jurisdiction of the United States.

(b) Except as authorized by OFAC, most transactions involving Cuba, Iran, Libya, and Sudan are prohibited, as are most imports into the United States from North Korea. Lists of entities and individuals subject to economic sanctions are included in OFAC's List of Specially Designated Nationals and Blocked Persons. More information about these restrictions as well as updates with respect to restrictions imposed after April 2003, is available in the OFAC's regulations at 31 CFR Chapter V and/or on OFAC's website at http:/www.treas.gov/ofac.

(c) The Contractor shall insert this clause, including this paragraph (c), in all subcontracts.

(End of clause)