Prohibits contracts with domestic corporations that reincorporated in a foreign country.
Applicability: Applies to all contracts where inverted status would be a disqualifying factor.
Key Requirements
Certify that contractor has not inverted corporate structure
Disclose if contractor has foreign parent ownership above threshold
Maintain documentation of corporate structure and tax domicile
Notify government of any changes to corporate inversion status
Common Issues & Pitfalls
Not recognizing that corporate inversion disqualifies bidding
Unclear understanding of what constitutes an 'inverted' corporation
Not disclosing parent company structure or tax domicile changes
Assuming ownership changes don't affect contracting eligibility
Contractor Guidance for Your Bid
If your company or parent has restructured for tax purposes internationally, verify you're not inverted. Inverted status is an automatic disqualifier for federal contracts. This clause primarily affects larger corporations but affects smaller ones too if they have foreign ownership structures. Verify your status with your legal team before bidding.