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ARTICLE · 16 DECEMBER 2014

FAR Council Issues Interim Rule Regarding the Prohibition on Certain Corporate Inversions

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Yesterday, the FAR Council issued an interim regulation addressing inverted corporations involved in government contracting.

United StatesGovernment, Public Sector
Marcia Madsen
Marcia Madsen
Luke Levasseur
Luke Levasseur
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Yesterday, the FAR Council issued an interim regulation addressing inverted corporations involved in government contracting. This interim regulation goes into effect immediately, and companies with inverted corporate structures—or those considering a restructuring—need to understand this development.

Federal procurement law has prohibited some companies with inverted corporate structures from contracting with the Department of Homeland Security since 2002, and subsequent appropriations legislation temporarily made the ban government wide during FY 2007 (and several later fiscal years). Current law prohibits contracting with certain inverted domestic corporations and contracting officers must include the clause implanting this requirement in each solicitation and contract (FAR 52.209-10).

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