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As a contractor holding a Phase II SBIR Contract from Army, can we subcontract a portion of the R&D to a foreign company to have their workers perform that work in another country? I understand the E-Verify requirements, but they don't apply to work done outside the US. I also understand the limits on the amount of work we can subcontract. But I am not seeing an actual prohibition on having a foreign subcontractor. What am I missing? The contract deliverable at issue is to do a first production run of a product that we will use for testing, evaluation and improvement. I've concluded that we can use a foreign supplier to make a first production run. The product is not a contract deliverable, but it is an element of the SOW for that deliverable. The research results are the deliverable. Thanks for any guidance or input!