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Office of Research and Innovation
Research Administration and Compliance

Drone Use in Federally Funded Projects

The Core Prohibition: What’s Banned?

FAR 52.240-1 is a federal regulation designed to protect national security by prohibiting the use of drones from specific foreign entities in federally funded projects. Understanding the key dates and what is explicitly banned is the first step to ensuring compliance.

Common Prohibited Manufacturers

Restrictions primarily target Unmanned Aerial Systems (UAS) from China. The following are explicitly designated as covered foreign entities and are therefore prohibited for use in federal contracts. (This list is not exhaustive)

⚠ DJI (Shenzhen DJI Innovation Technology Co., Ltd.)

⚠ Autel Robotics Co., Ltd.

⚠ Aerospace CH UAV Co., Ltd. (CH UAV)

⚠ Chengdu IOUAV Automation Tech Co., Ltd. (IOUAV) 

⚠ AEE Shenzhen Yidian Aviation Technology Co., Ltd.

The authoritative list is maintained on SAM.gov and should be checked regularly.

Key Compliance Dates

Effective Nov 12, 2024

Federal contractors are prohibited from delivering any prohibited UAS and cannot use federal funds to purchase or lease them.
On or After Dec 22, 2025The prohibition extends to operating a prohibited UAS in the performance of a federal contract, even if purchased with non-federal funds.

Find Compliant Drones

The most reliable way to ensure compliance is to select a drone from a trusted source. UAS manufacturers in the U.S., Europe or India are likely compliant.  Additionally, the Department of Defense maintains a Cleared Drone List.

View DOD Blue UAS Cleared List

Compliance Action Checklist

Follow these best practices to ensure your research operations remain compliant.

  • Prioritize the DOD Blue UAS Cleared List for the strongest compliance assurance.
  • If you plan on purchasing a UAS not on the DOD Blue UAS Cleared List, contact the Export Control Office for a Restricted Party Screen to ensure the manufacturer is not on the prohibited list.  
  • Implement a robust system to track each drone’s manufacturer, purchase source, and project usage.
  • Maintain clear segregation between drones used for federally funded projects and those for other activities.
  • Do not rely on exemptions or waivers as a primary compliance strategy; they are rare.

Why This Matters: The Risks

Compliance isn’t just about rules; it’s about mitigating genuine national security and data integrity risks associated with non-compliant drone technology.

Data and Cybersecurity

Prohibited drones can have vulnerabilities like malware or automatic data transmission to foreign servers, compromising sensitive research data.

Supply Chain Integrity

The rule targets the entire drone ecosystem, including software and critical components, to prevent potential backdoors or sabotage.

Contractual and Financial

Non-compliance can lead to contract termination, disallowance of costs, and significant damage to NC State’’s reputation.