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    Can we make award to this company in Baghdad, Iraq? I checked FAR 25-701 and it does not prohibit transactions with company in Iraq. Only transactions involving Cuba, Iran, and Sudan are prohibited. Thank you!


    Answer

    We also checked FAR 25-701 as well as DFARS Subpart 225.7, which also addresses prohibitions re: foreign sources located in countries considered State Sponsors of Terrorism (currently Iran, North Korea and Syria per DFARS Subpart 252.225-7000).

    While there are no apparent FAR or DFARS prohibitions with respect to acquiring Reagants from a foreign source in Iraq, it's important to remember that no DoD classified military info (CMI) or controlled unclassified information (CUI) may be disclosed to the Iraqi company (or Iraqi government officials, including customs officers, etc.) throughout the contracting process without DoD foreign disclosure approval from the DoD Component foreign disclosure authority/ies. 

    Accordingly, if the contracting process with the Iraqi source can be conducted wholly and solely using only USG or DoD UNCLASSIFIED information, then the questionner's organization should be able to move forward with the contracting process.  However, if release of USG or DoD CMI or CUI is required to implement the contracting process with the Iraqi source, then appropriate DoD foreign disclosure approval(s) must be obtained prior to initiating the contracting process.

    The questioners' e-mail address has an Air Force suffix.  The top level foreign disclosure authority in the Air Force is SecAF/International Affairs.  There may also be a local AF foreign disclosure organization that is available for consulation on this matter, if needed.

    Finally, we also recommend the contracting organization research potential export and import licensing requirements by the Gov't of Iraq or the USG that may apply to the procurement and shipment of the Reagents via BPA from the Iraqi source.  The Iraqi source (not DoD) will be responsible for obtaining any applicable Iraqi or USG export and import approvals.  Best practice in this area is to question the Iraqi source to assess their level of understanding regarding whether any such requirements exist.  The USEMB Country Team Commmercial Attache in Iraq should be able to assist in explaining the potential impact of any Iraqi Gov't export approvals on the transaction.  If any USG import approval requirements exist (unlikely but possible), we recommend the AF consult the appropriate office in the U.S. Commerce Department to comfirm that the Iraqi source will be able to obtain any such approvals.

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