FAR 52.209-10 Prohibition on Contracting with Inverted Domestic Corporations. Basic (Nov 2015)

As prescribed in 9.108-5(b), include the clause at 52.209-10, Prohibition on Contracting with Inverted Domestic Corporations, in each solicitation and contract for the acquisition of products or services (including construction).

From United States Code:

    (a) In general

The Secretary may not enter into any contract with a foreign incorporated entity which is treated as an inverted domestic corporation under subsection (b), or any subsidiary of such an entity.

    (b)Inverted domestic corporationFor purposes of this section, a foreign incorporated entityshall be treated as an inverted domestic corporation if, pursuant to a plan (or a series of related transactions)—

        (1)the entity completes before, on, or after November 25, 2002, the direct or indirect acquisition of substantially all of the properties held directly or indirectly by a domestic corporation or substantially all of the properties constituting a trade or business of a domestic partnership;

        (2)after the acquisition at least 80 percent of the stock (by vote or value) of the entity is held—

            (A) in the case of an acquisition with respect to a domestic corporation, by former shareholders of the domestic corporation by reason of holding stock in the domesticcorporation; or

            (B) in the case of an acquisition with respect to a domestic partnership, by former partners of the domestic partnership by reason of holding a capital or profits interest in the domestic partnership; and

        (3) the expanded affiliated group which after the acquisition includes the entity does not have substantial business activities in the foreign country in which or under the law of which the entity is created or organized when compared to the total business activities of such expanded affiliated group.

Prohibition on Contracting with Inverted Domestic Corporations (Nov 2015)

(a) Definitions. As used in this clause—

“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).

“Subsidiary” means an entity in which more than 50 percent of the entity is owned—

    (1) Directly by a parent corporation; or

    (2) Through another subsidiary of a parent corporation.

(b) If the contractor reorganizes as an inverted domestic corporation or becomes a subsidiary of an inverted domestic corporation at any time during the period of performance of this contract, the Government may be prohibited from paying for Contractor activities performed after the date when it becomes an inverted domestic corporation or subsidiary. The Government may seek any available remedies in the event the Contractor fails to perform in accordance with the terms and conditions of the contract as a result of Government action under this clause.

(c) Exceptions to this prohibition are located at 9.108-2.

(d) In the event the Contractor becomes either an inverted domestic corporation, or a subsidiary of an inverted domestic corporation during contract performance, the Contractor shall give written notice to the Contracting Officer within five business days from the date of the inversion event.

(End of clause)

NONE

Subcontractor ✖   52.212-5 (SAM.gov clause) ✔ 

52.214-27 Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed Bidding.

52.215-10 Price Reduction for Defective Certified Cost or Pricing Data.

52.215-11 Price Reduction for Defective Certified Cost or Pricing Data—Modifications.

52.216-24 Limitation of Government Liability.

52.222-12 Contract Termination—Debarment.

52.222-17 Nondisplacement of Qualified Workers.

52.222-50 Combating Trafficking in Persons.

52.222-55 Minimum Wages Under Executive Order 13658.

52.228-1 Bid Guarantee.

52.228-8 Liability and Insurance—Leased Motor Vehicles.

52.232-27 Prompt Payment for Construction Contracts.

52.236-23 Responsibility of the Architect-Engineer Contractor.

52.242-3 Penalties for Unallowable Costs.

52.246-16 Responsibility for Supplies.

52.246-18 Warranty of Supplies of a Complex Nature.

52.246-19 Warranty of Systems and Equipment under Performance Specifications or Design Criteria.

52.246-21 Warranty of Construction.

52.247-21 Contractor Liability for Personal Injury and/or Property Damage.

52.247-22 Contractor Liability for Loss of and/or Damage to Freight other than Household Goods.

52.247-23 Contractor Liability for Loss of and/or Damage to Household Goods.

52.247-58 Loading, Blocking, and Bracing of Freight Car Shipments.

252.227-7019 Validation of Asserted Restrictions--Computer Software.

252.227-7037 Validation of Restrictive Markings on Technical Data.

252.239-7013 Obligation of the Government.

252.247-7007 Liability and Insurance.

252.247-7014 Demurrage.

252.247-7016 Contractor Liability for Loss or Damage.

1852.245-71 Installation-accountable Government Property.

1852.227-88 Government-furnished computer software and related technical data.

1852.228-70 Aircraft Ground and Flight Risk.

1852.228-71 Aircraft Flight Risks.

1852.228-76 Cross-Waiver of Liability for International Space Station Activities.

1852.228-78 Cross-Waiver of Liability for Science or Space Exploration Activities Unrelated to the International Space Station.

1852.228-80 Insurance — Immunity From Tort Liability.

1852.228-81 Insurance — Partial Immunity From Tort Liability.

1852.228-82 Insurance — Total Immunity From Tort Liability.

1852.236-73 Hurricane Plan.

1852.245-72 Liability for Government property furnished for repair or other services.

3052.209-71 Reserve Officer Training Corps and military recruiting on campus.

3052.217-93 Subcontracts (USCG).

3052.217-95 Liability and insurance (USCG).

3052.217-97 Discharge of liens (USCG).

3052.217-99 Department of Labor Safety and Health Regulations for ship repairing (USCG).

3052.217-100 Guarantee (USCG).

3052.222-70 Strikes or picketing affecting timely completion of the contract work.

3052.222-71 Strikes or picketing affecting access to a DHS facility.

5352.223-9001 Health and Safety on Government Installations

5152.225-5900 Arming Requirements and Procedures for Personal Security Services Contractors and Requests for Personal Protection

5152.225-5903 Compliance with Laws and Regulations

5152.228-5900 Government Liability for Non-Tactical Vehicles

5152.225-5902 Fitness for Duty and Medical/Dental Care Limitations

5152.225-5915 CONTRACTOR ACCOUNTABILITY AND PERSONNEL RECOVERY

552.211-76 Charges for Packaging , Packing, and Marking.

552.211-89 Non-Manufactured Wood Packaging Material for Export.

552.236-82 Subcontracts.

552.238-75 Price Reductions.

652.236-70 Accident Prevention.

1452.215-70 Release of Claims.

Working with a set of FAR clauses from an RFP or contract?

Try pasting them into our tool to instantly generate a risk profile, including the basic flow down recommendation.

Info

Works best with Chrome and Edge browsers!