DFARS (Defense Federal Acquisition Regulation Supplement)

What is DFARS (Defense Federal Acquisition Regulation Supplement)?

The Defense Federal Acquisition Regulation Supplement (DFARS) is a set of regulations that governs how the Department of Defense (DoD) acquires goods and services. It provides specific rules and guidelines that supplement the Federal Acquisition Regulation (FAR), offering more detailed instructions and requirements tailored to the unique needs of the DoD.

Definition

DFARS is essentially the DoD's implementation and supplementation of the FAR. It outlines policies and procedures for all stages of the acquisition process, from planning and solicitation to contract administration and closeout. The DFARS covers a wide range of topics, including cybersecurity, data rights, domestic sourcing requirements (like the Berry Amendment), and contractor business systems. Compliance with DFARS is typically mandatory for contractors seeking to do business with the DoD, and its primary legal basis comes from the authority granted to the DoD by Congress to manage its own acquisitions in accordance with federal law. It matters to contractors because failing to comply with DFARS can result in significant penalties, including contract termination, fines, and exclusion from future contracting opportunities.

Key Points

• DoD-Specific Requirements: DFARS addresses aspects of acquisition unique to the DoD, such as weapons systems, classified information, and military-specific technologies.
• Cybersecurity Focus: Recent revisions to DFARS, particularly DFARS 252.204-7012, emphasize stringent cybersecurity standards to protect controlled unclassified information (CUI).
• Mandatory Flow-Down: Many DFARS clauses must be "flowed down" to subcontractors, meaning prime contractors are responsible for ensuring their subcontractors also comply.
• Constant Evolution: DFARS is frequently updated to reflect changes in technology, national security concerns, and acquisition policies, requiring contractors to stay informed.

Practical Examples

1. Cybersecurity Compliance: A small business providing IT services to the Air Force must implement the security controls specified in NIST Special Publication 800-171 to protect CUI, as mandated by DFARS 252.204-7012.
2. Berry Amendment Compliance: A textile manufacturer bidding on a contract to supply uniforms to the Army must ensure that all fabrics and components are produced in the United States, as required by the Berry Amendment, which is implemented through DFARS clauses.
3. Business Systems Adequacy: A large defense contractor undergoes a Defense Contract Audit Agency (DCAA) audit of its accounting system to determine if it meets the DFARS requirements for business systems, ensuring that costs are properly tracked and allocated.