whatbindsCheck your order

Clauses · DFARS · Banned sources and products

DFARS 252.209-7004 Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism

Does the regulation require it to flow down?

No

The current text has no flow-down paragraph — the duties ((a) restriction, (b) prior notification by a corporate officer) bind whoever holds the clause; primes pass it along in templates to extend the SAM screening to lower tiers

A clause can reach your subcontract without a mandate. Once it is in your document, it is a contract term all the same. The missing mandate is a fact about the regulation. It is not a ruling on your order.

Checked against acquisition.gov on 2026-08-04 · edition MAY 2019 · base v0.9.3 Read the text ↗

What it makes you produce

One item for your checklist.

  1. Something you write

    Days to weeks, and nobody outside your company has to agree to it.

    • A written notice to the buyer, signed by one of your corporate officers, naming the firm and the compelling reasons for placing the order with it

      Owed when you intend to place a lower-tier order above the FAR 9.405-2(b) threshold, $45,000 in the current text and other than for a commercially available off-the-shelf item, with a firm SAM lists as owned or controlled by a government that sponsors terrorism — the notice comes before you sign, not after

      DFARS 252.209-7004(b)

When it is used

Prescribed at 209.409 for DoD contracts (exact prime-level use condition not confirmed in the text read). The restriction in (a) applies to whoever carries the clause: no subcontract above the FAR 9.405-2(b) threshold — $45,000 in the current text, except COTS — with a firm listed in SAM Exclusions for being controlled by the government of a state sponsor of terrorism, absent a compelling reason.

Read closely

Paragraph (a) is the restriction itself. The test runs on the orders you place rather than on the value of the order you received, so the screening step is the SAM exclusions list before a purchase closes.

The 10 templates that name it, with the line
233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 1596166Northrop Grumman CTM-P-ST-001 — U.S. Government Firm Fixed Price Order (Not for Commercial Products and Services)Northrop Grummanline 2419166Northrop Grumman CTM-P-ST-003 — U.S. Government T&M Order (Not for Commercial Products and Services)Northrop Grummanline 2358168Northrop Grumman CTM-P-ST-004 — U.S. Government Cost Reimbursement Order (Not for Commercial Products and Services)Northrop Grummanline 2449255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 1263243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 2172122GD Mission Systems SCM-TMP-095 — FFP Purchase Orders for Commercial/COTS Products or Services in Support of a U.S. Government ContractGeneral Dynamicsline 1122240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 2220106L3Harris LGL-50.F2 — General T&C and Flowdown Clauses for Commercial Products/Services under a U.S. Government ContractL3Harrisline 158289AAR Government Services — C40 Purchase Order General Provisions, Non-Commercial Firm Fixed Price Items or ServicesAAR Corpline 3103

Source: acquisition.gov, DFARS 252.209-7004, 209.409 and FAR 9.405-2(b) (verified 2026-08-04)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.