Prohibition on Government Contracts for Inverted Domestic Corporations
This act prohibits the awarding of federal government contracts (civilian and defense) to foreign incorporated entities determined to be inverted domestic corporations and their subsidiaries. The ban also extends to joint ventures where such entities hold more than 10 percent ownership. The act mandates that prime contractors must not subcontract with such entities in contracts valued over $10 million, under penalty of contract termination or debarment.
Key points
Executive agencies may not award procurement contracts to inverted domestic corporations.
The prohibition extends to joint ventures if more than 10 percent is owned by an inverted domestic corporation.
Contracts exceeding $10 million (excluding commercial items) must include a clause prohibiting subcontracting more than 10 percent of the value to such entities.
Violations by the prime contractor may result in contract termination for default or suspension/debarment.
Waivers are permitted for national security interests or efficient administration of health programs.
Status:
Expired
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