Department of Defense FAR Supplement

Department of Defense FAR Supplement
Name	Department of Defense FAR Supplement
Abbreviation	DFARS
Jurisdiction	United States
Agency	Department of Defense
Established	1984
Related legislation	Federal Acquisition Regulation
Website	(official)

Contents

Department of Defense FAR Supplement The Department of Defense FAR Supplement prescribes procurement policies and procedures for the United States Department of Defense, supplementing the Federal Acquisition Regulation framework used across United States federal agencies, and informing acquisition officials at organizations such as the Defense Logistics Agency, United States Army Materiel Command, Naval Sea Systems Command, and Air Force Materiel Command. It integrates requirements from statutes like the Defense Acquisition Workforce Improvement Act, Clinger–Cohen Act, Buy American Act, and directives from Secretaries of Defense including Caspar Weinberger, Donald Rumsfeld, and Lloyd Austin. The Supplement guides contracting officers, program managers, and legal advisors in interactions with contractors including Lockheed Martin, Boeing, Northrop Grumman, and General Dynamics.

Overview

The Supplement functions as an addendum to the Federal Acquisition Regulation, adding DoD-specific rules for acquisition, contract management, and procurement integrity used by components such as United States Special Operations Command, United States Space Force, Defense Advanced Research Projects Agency, and Missile Defense Agency. It codifies implementation of laws like the False Claims Act (United States), International Traffic in Arms Regulations, and policies from the Office of Management and Budget, while aligning with executive orders issued by presidents including Barack Obama, Donald Trump, and Joe Biden. The document addresses sourcing, pricing, cybersecurity, and export controls relevant to major programs like the F-35 Lightning II program, Zumwalt-class destroyer, and KC-46 Pegasus.

Development began after widespread procurement reforms in the 1980s, responding to critiques during events such as the Iran–Contra affair and hearings involving committees like the United States Senate Committee on Armed Services and the United States House Committee on Oversight and Accountability. Early codification paralleled legislation including the Competition in Contracting Act and administrative changes implemented during administrations of Ronald Reagan and George H. W. Bush. Subsequent revisions responded to crises and programs like the Iraq War, War in Afghanistan (2001–2021), and initiatives from the Base Realignment and Closure Commission, as well as technical imperatives arising from partnerships with agencies such as the National Aeronautics and Space Administration and National Security Agency.

The Supplement is organized to mirror the Federal Acquisition Regulation parts, with DoD-specific subparts covering topics including contract pricing, Cost Accounting Standards Board, Defense Contract Audit Agency procedures, and reporting to offices like the Defense Contract Management Agency. It contains clauses and provisions for intellectual property, Data Rights, cyber requirements tied to the Cybersecurity Maturity Model Certification program, and supply chain risk rules referencing entities such as Committee on Foreign Investment in the United States and statutes like the Foreign Investment Risk Review Modernization Act of 2018. Annexes and matrices guide interactions with industrial partners like Raytheon Technologies and BAE Systems.

Components implement the Supplement through internal issuances at organizations including United States Army, United States Navy, United States Air Force, and United States Marine Corps, with oversight by the Under Secretary of Defense for Acquisition and Sustainment and counsel from the Office of the General Counsel of the Department of Defense. Compliance requires coordination with audit bodies such as the Government Accountability Office, Inspector General of the Department of Defense, and financial control offices following standards from the Office of Inspector General (United States Department of Defense). Training programs for acquisition professionals reference curricula from the Defense Acquisition University and certifications aligned with the Project Management Institute.

The Supplement interrelates with the Federal Acquisition Regulation and harmonizes with statutes enforced by agencies including the Department of Justice, Department of Commerce, and Department of State—notably through International Traffic in Arms Regulations and Export Administration Regulations coordination. It also intersects with procurement frameworks in allied institutions such as the North Atlantic Treaty Organization and interoperability efforts with partners like the United Kingdom Ministry of Defence and Australian Defence Force. Treaty obligations exemplified by agreements like the Wassenaar Arrangement influence export-control harmonization reflected in the Supplement.

The Supplement shapes contract award strategies, incentivizes innovation in partnerships with research entities like Massachusetts Institute of Technology, Johns Hopkins University Applied Physics Laboratory, and Sandia National Laboratories, and affects industrial base decisions involving primes and small businesses certified by the Small Business Administration. It influences program schedules for systems like the Virginia-class submarine and procurement of services for installations such as Fort Bragg and Naval Station Norfolk, while affecting cost models examined in litigation before tribunals like the United States Court of Federal Claims.

Scholars, contractors, and oversight bodies have criticized the Supplement for complexity and administrative burden, citing cases in courts such as the United States Court of Appeals for the Federal Circuit and controversies involving firms like Boeing and KBR, Inc.. Legal challenges have invoked statutes including the Administrative Procedure Act and contested implementation of clauses tied to cybersecurity, intellectual property, and socio-economic set-asides enforced by the Federal Trade Commission and Department of Labor. Debates continue over balance between acquisition agility and statutory compliance in procurement reforms championed by figures like William Perry and debated in forums such as the Brookings Institution and Heritage Foundation.