Since Aug. 30, 2012, public owners at the state, county and local levels, along with the myriad cast of bidders on governmental procurements, have had to deal with yet another public bidding requirement: the disclosure of investment activities in Iran certification required by P.L. 2012, c. 25. Over the past year, difficulties have been encountered in: (a) defining exactly what must be disclosed, by whom and when; (b) formulating a disclosure certification form that complies with the law and can be understood by reasonably intelligent bidders; and (c) adjudicating protests from disappointed bidders within the context of current public contract law jurisprudence.
Origin and Requirements of the State Act
With the enactment on July 1, 2010, of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA), the federal government adopted a scheme to impose sanctions on companies that engage in a wide variety of business activities in Iran’s energy sector. P.L. 111-195. CISADA expanded upon the Iran Sanctions Act of 1996, which focused upon companies with certain investments in Iran’s energy economy. CISADA precludes the award of federal contracts to any person or firm, including its subsidiaries, that engages in sanctionable energy- or weapons-related activities. This preclusion is, however, subject to waiver by the president on any particular contract.
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