Prohibited Foreign Companies refer to organizations or entities headquartered, registered, or primarily operating outside of United States that are barred from conducting business with U.S. government. This prohibition can occur due to various reasons such as involvement in activities that are counter to U.S. national security, violations of human rights, or breach of international trade agreements. U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) maintains a list of such entities, known as Specially Designated Nationals List (SDN), and U.S. persons are generally prohibited from dealing with them.
The term Prohibited Foreign Companies is significant within the context of General Services Administration (GSA) dealings. GSA is responsible for the procurement of goods and services for U.S. federal agencies and thus must ensure compliance with all federal laws and regulations, including those pertaining to transactions with Prohibited Foreign Companies. Non-compliance can result in penalties, including fines or disqualification from future government contracts. Therefore, it is essential for all GSA Schedule contract holders and prospective vendors to regularly check for updates to the list of Prohibited Foreign Companies.
