BPW Advisory 2013-1 Investment Activities in Iran

Purpose: To provide general guidance to State agencies concerning the Investment Activities in Iran Act.

Authority: State Finance & Procurement, §§17-701 – 17-707, Annotated Code of Maryland [Chapter 447, Laws of 2012].

List: The Investment Activities In Iran list identifies companies that the Board of Public Works has found to engage in investment activities in Iran; those companies may not participate in procurements with a public body in the State. “Engaging in investment activities in Iran” means:

  • Providing goods or services of at least $20 million in the energy sector of Iran; or
  • For financial institutions, extending credit of at least $20 million to another person for at least 45 days if the person is on the Investment Activities In Iran list and will use the credit to provide goods or services in the energy of Iran.

The Investment Activities in Iran list is located at our website under Debarments.


  1. A company listed on the Investment Activities In Iran list is ineligible to bid on, submit a proposal for, or renew a contract for goods and services with a State agency or any public body of the State. Also ineligible are any parent, successor, subunit, direct or indirect subsidiary of, or any entity under common ownership or control of, any listed company.
  2. NOTE: This law applies only to new contracts and to contract renewals. The law does not require an agency to terminate an existing contract with a listed company.

  3. Agencies must obtain a certification regarding investments in Iran from each bidder or offeror for new contracts and from each contractor seeking to renew an existing contract. Specifically, bidders, offerors, and renewing contractors have to certify that at the time the bid/proposal is submitted or the contract renewed that the company is neither identified on the Investment Activities In Iran list nor engaging in investment activities in Iran. The certification language can be found in COMAR Online​.

  4. A company that cannot make the certification must supply the agency, under penalty of perjury, with a detailed written description of its investment activities in Iran.
  5. (a) The agency should consult promptly with the Office of the Attorney General for advice. Generally, the agency will determine that the bidder or offeror is not responsible and reject the bid/proposal.
    (b) The agency must forward to the Board of Public Works any information received from a non-certifying company.

Agency Procedures:

  • Agencies should state in procurement solicitations that companies appearing on the Investment Activities In Iran list are ineligible for award.
  • Agencies must obtain a written certification from bidders/offerors/renewing contractors. A sample certification is attached.
  • Agencies must check the names of apparent awardees against the Investment Activities In Iran list before making a recommendation for award. Vendors appearing on the Investment Activities In Iran list are ineligible for award.
  • Agencies must supply the Board of Public Works with information received related to a company’s investment activities in Iran.

False Certifications: If an agency, using credible information, determines that a company has submitted a false certification regarding its investments in Iran, the agency must notify the company and provide the company 90 days to demonstrate in writing that it is not engaged in investment activities in Iran. If the company fails to demonstrate that it is not engaged in investment activities in Iran in that time, the agency shall report the company to the Attorney General and to the Board of Public Works.

Questions concerning this Advisory may be addressed to your agency’s legal advisor or the Board of Public Works staff.

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