Defense Federal Acquisition Regulation Supplement

Defense Federal Acquisition Regulation Supplement
Name	Defense Federal Acquisition Regulation Supplement
Abbreviation	DFARS
Jurisdiction	United States Department of Defense
Established	1988
Related	Federal Acquisition Regulation
Website	DFARS (DoD)

Defense Federal Acquisition Regulation Supplement The Defense Federal Acquisition Regulation Supplement is a codified set of procurement regulations issued by the United States Department of Defense to supplement the Federal Acquisition Regulation. It prescribes acquisition policies, procedures, and contract clauses for acquisitions conducted by the Department of Defense, coordinating with statutes, executive actions, and DoD directives. The supplement interfaces with acquisition programs managed by the Office of the Secretary of Defense, the Army, the Navy, and the Air Force to implement acquisition reform, cybersecurity requirements, and industrial base strategies.

Purpose and Scope

The supplement provides DoD-specific acquisition policy and contract administration rules that operationalize statutes such as the Arms Export Control Act, the Competition in Contracting Act of 1984, and the Clinger–Cohen Act. It governs acquisition activities across major DoD components including United States Army, United States Navy, United States Air Force, and Defense Advanced Research Projects Agency programs, addressing defense-unique matters like classified information protection, export controls, and foreign military sales handled by Defense Security Cooperation Agency. DFARS provisions apply to procurement instruments, grants, cooperative agreements, and subcontracts where DoD funding or oversight is implicated, and they interact with appropriations law and oversight from bodies such as the Government Accountability Office and the Congressional Budget Office.

History and Development

DFARS emerged in the context of federal acquisition reform and the consolidation of procurement regulation overseen by the Department of Defense after the publication of the Federal Acquisition Regulation in 1984. Over time, major events and legislative acts shaped DFARS evolution: procurement reforms following the Packard Commission recommendations, statutory changes from the Federal Acquisition Streamlining Act of 1994, and security priorities after the September 11 attacks that accelerated requirements for counterintelligence and supply chain risk management. DoD issuance cycles, such as those led by Secretaries of Defense like Les Aspin and Donald Rumsfeld, and oversight by the Defense Acquisition University influenced revisions. Significant amendments responded to initiatives like the Better Buying Power series and to technological shifts exemplified by programs from Northrop Grumman, Lockheed Martin, and Raytheon Technologies.

Structure and Content

DFARS is organized into subchapters and parts that mirror the FAR structure while inserting DoD-specific text, contract clauses, and prescriptions. It contains clauses addressing acquisition planning, source selection, contract types, and small business programs in collaboration with Small Business Administration programs. The supplement includes provisions on intellectual property rights pertaining to defense research performed with entities such as Massachusetts Institute of Technology and Carnegie Mellon University, cybersecurity and controlled unclassified information requirements influenced by directives from National Institute of Standards and Technology and Cybersecurity and Infrastructure Security Agency, and supply chain risk mitigation relating to firms like Boeing and General Dynamics.

Relationship to the Federal Acquisition Regulation (FAR)

DFARS operates as a supplement to the FAR; it neither replaces nor contradicts FAR provisions except where expressly authorized by statute or by FAR prescription. When the FAR provides a broad regulatory framework, DFARS adds DoD-specific prescriptions, clauses, and contract administration rules that reflect statutes overseen by the House Armed Services Committee and the Senate Armed Services Committee. Conflicts between DFARS and FAR are resolved through acquisition policy channels involving the Office of Federal Procurement Policy, DoD General Counsel, and the Defense Pricing and Contracting office, ensuring alignment with cross-agency initiatives such as those championed by Office of Management and Budget memos.

Implementation and Compliance

Implementation of DFARS requirements occurs through contracting officer actions, internal DoD audit and compliance activities by the Defense Contract Audit Agency, and oversight by the Defense Contract Management Agency. Contractors and prime contractors entering into agreements with DoD—ranging from large primes like United Technologies affiliates to smaller defense subcontractors—must flow DFARS clauses into subcontracts as required and maintain records subject to reviews by Inspector General of the Department of Defense. Noncompliance can prompt bid protests at the Government Accountability Office, contract remedies including termination, and criminal or civil actions pursued by the Department of Justice under statutes like the False Claims Act.

Key Policy Areas and Notable Parts

Key policy areas within DFARS include cybersecurity and supply chain security clauses derived from initiatives such as the Defense Industrial Base Cybersecurity Program, patent and data rights clauses connected to work with institutions like California Institute of Technology, foreign acquisition and export control provisions tied to International Traffic in Arms Regulations, and production and sustainment policies for major weapons systems exemplified by programs like the F-35 Lightning II. Notable DFARS parts address specialty topics: procurement integrity rules intersecting with Office of Inspector General investigations, small business subcontracting drawn from Small Business Act authorities, and socioeconomic programs such as set-asides for Service-Disabled Veteran-Owned Small Businesses and Historically Black Colleges and Universities linked to the Higher Education Act of 1965.

Category:United States federal procurement law