Background

The Federal Acquisition Regulation (FAR) is the primary set of rules governing how US federal government agencies acquire goods and services. It is jointly maintained by the Department of Defense, General Services Administration, and NASA, and applies to virtually all federal procurement activity. In the drone sector, FAR clause 52.240-1 took effect on 13 March 2026, prohibiting the use of drones covered by the American Security Drone Act (ASDA) in federal contracts and requiring contractors to certify compliance. The clause effectively bars Chinese-manufactured drones, including DJI and Autel Robotics products, from all federal contracts.

The FAR operates through a codified system of clauses and supplements that agencies incorporate by reference into contracts. Changes to the FAR are published in the Federal Register and can be proposed by any agency, but are subject to a rule-making process that includes public comment periods. Clause 52.240-1 is a significant addition because it extends supply-chain security requirements from hardware procurement to all contractors who use or operate drones as part of their federal work, not just direct drone purchases. This broadened scope captures a large population of contractors in areas from surveying to logistics.

The FAR's drone-related clause sits alongside other regulatory instruments, including the Section 232 tariff investigation and the FCC's Covered List, that together form a multi-layered regulatory barrier against Chinese drone technology in US federal operations. The clause's downstream legal fight continues: DJI's Ninth Circuit opposition brief (Case 26-1029, filed 22 April 2026) quantifies $1.56 billion in 2026 losses attributable to the related FCC Covered List restrictions, and Autel Robotics' reply brief of 19 May 2026 invokes a Fifth Amendment due-process claim to the classified evidence underlying its own listing. Neither case challenges FAR clause 52.240-1 directly, but both test the evidentiary basis for the export-control architecture the clause sits within.

Common Questions

What is FAR clause 52.240-1 and what does it ban?

FAR clause 52.240-1 is a provision of the Federal Acquisition Regulation that took effect on 13 March 2026, barring drones covered by the American Security Drone Act from all US federal contracts. It requires contractors to certify compliance, effectively banning DJI and Autel Robotics products.Source: Lowdown drones-industry-defence

Can US government contractors still use DJI drones?

No. FAR clause 52.240-1, effective 13 March 2026, bars American Security Drone Act-covered drones from all federal contracts. DJI and Autel Robotics products are covered. Contractors must certify compliance.Source: Lowdown drones-industry-defence

What is the Federal Acquisition Regulation?

The Federal Acquisition Regulation (FAR) is the rulebook for all US federal government procurement, jointly maintained by the DoD, GSA, and NASA. It sets terms, clauses, and compliance requirements for all federal contracts.Source: Lowdown drones-industry-defence

How are Chinese drones regulated in the United States?

Three overlapping mechanisms restrict Chinese drones: FAR clause 52.240-1 bans them from federal contracts (effective March 2026), the FCC Covered List prevents DJI from certifying new products, and a Section 232 tariff investigation could impose further trade barriers.Source: Lowdown drones-industry-defence

Is FAR clause 52.240-1 being challenged in court?

DJI and Autel Robotics are separately litigating the underlying FCC Covered List designation that FAR clause 52.240-1 relies on, but neither case challenges the FAR clause itself directly.Source: Lowdown reporting

How the World Sees Them

China

The FAR clause, combined with FCC Covered List exclusion and Section 232 investigation, effectively closes US federal procurement to Chinese drone manufacturers. DJI has challenged these restrictions in the Ninth Circuit.

United States

FAR clause 52.240-1 is the contracting mechanism that translates ASDA into procurement reality. It creates direct contractor liability and certifications that make the ban enforceable across the federal supply chain.

US drone industry

Domestic drone manufacturers benefit from the FAR clause by displacing Chinese competitors from federal contracts. The gap between Chinese exclusion and available domestic alternatives has created an acute supply-side challenge the FAR cannot resolve.