Deconstructing the DFARS Overhaul: Wiley

On December 18, 2025, the Department of Defense/War (DOD/W) began the process of “overhauling” the Defense Federal Acquisition Supplement (DFARS). The DFARS overhaul is in response to Executive Order 14275, Restoring Common Sense to Federal Procurement, Executive Order 14265, Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base, and the Department’s Acquisition Transformation Strategy: Rebuilding the Arsenal of Freedom. Like the overhaul of the Federal Acquisition Regulation (FAR), the overhaul of the DFARS is occurring in two phases: (1) issuance of class deviations to implement each revised DFARS Part, with an effective date of February 1, 2026; and (2) notice-and-comment rulemaking, after issuance of the class deviations, to finalize the revised DFARS. In addition, DOD/W will adopt the overhauled FAR via class deviation as of February 1, 2026.

The December 18 announcement was accompanied by overhauls of 31 DFARS Parts. The Department posted additional updated DFARS Parts on January 12, 20, 21, and 23 and intends to revise the remaining Parts by the end of January 2026. The overhauled Parts each have a class deviation memo, a revised version of the DFARS Part, and a line out of the DFARS Procedures, Guidance, and Information (PGI), if applicable to the specific Part. Unlike the Revolutionary FAR Overhaul, there are no Practitioner Albums or explanations of changes that accompany the overhauled DFARS Parts.

As a companion to our Decoding the FAR Overhaul site, we are Deconstructing the DFARS Overhaul. Our site will include a summary of each DFARS Part, highlighting those issues that are of most relevance to defense contractors. We will continue to update the site as we work through the revised DFARS Parts to provide a one-stop shop for understanding the DFARS overhaul.

Table of Contents - Summary of Overhauled DFARS Parts

Summary of Overhauled FAR Parts

DFARS Part 201 (Federal Acquisition Regulations System)

The rewrite of DFARS Part 201 is less about changing contractor obligations directly and more about reorganizing the Part: It streamlines, renumbers, and moves granular procedural content out of the regulation text (often to Procedures, Guidance and Information (PGIs)), while adding a few clarifying rules. Some of the numbering is awkward as a result (e.g., DFARS 201.101 starts with paragraph (a)(2)).

Commercial products/services applicability clarification: New 201.107 “FAR conventions” states that if a DFARS clause or provision prescription is silent with respect to commercial products and services, it does not apply to them and clarifies that Commercial-Off-the-Shelf (COTS) items are, indeed, commercial.
Publication/official source language modernized: The rewrite adds a dedicated section in DFARS 201.104-70 on where to access the official DFARS and DFARS PGI and where changes are published, and it cross‑references FAR 1.107(d) guidance on clause insertion timing.
Peer review framework “collapsed” in the rule text: The original DFARS contained detailed peer review thresholds and mechanics in DFARS 201.170; the rewrite reduces 201.170 to a short directive to follow PGI 201.170.
Removal of text on “Agency Acquisition Regulations” and “Deviations from the FAR”: Large parts of Subpart 201.2 regarding maintenance of and revision to the FAR and DFARS are removed. Similarly, large parts of Subpart 201.3 about FAR deviations are sliced.
Addition of Contracting Officer Representative (COR) Guidance. FAR 201.404 adds guidance on the designation of CORs.

DFARS Part 203 (Improper Business Practices and Personal Conflicts of Interest)

The overhaul of DFARS Part 203 makes few substantive changes and instead primarily makes similar plain-language updates that were seen in the FAR overhaul, such as swapping out the term “must” for “shall”. The contract clauses found in DFARS Part 252 similarly remain the same and incorporate only plain-language updates. This is because, like the FAR, DFARS Part 203 implements several statutes, including those related to whistleblower protections.

Plain Language: Through this Part, the terms “shall” and prepositional phrases were removed in favor of more active verbs.
Slight Revision to DFARS 203.906, Remedies related to whistleblower protections for contractor employees: DFARS 203.906 previously provided that a complainant may bring an action in district court if the head of the agency fails to issue an order on a whistleblower complaint within specified time limits and “there is no showing” that the delay is due to the bad faith of the complainant. Under the overhauled provision, the DFARS replaces the requirement for there to be “no showing” that the delay is due to bad faith with a requirement that “no evidence exists” that the delay is due to bad faith. This change may be intended to be a plain language update, but the change arguably revises the standard for when an action may be brought in district court.
Content Moved: The DFARS overhaul moves a list of organizations responsible for investigating possible kickbacks from the DFARS to PGI 203. Other than that change, PGI 203 remains substantively the same.

DFARS Part 204 (Administrative and Information Matters)

Overhauled Part 204 was significantly reorganized, with several legacy subparts removed, renumbered, or relocated under a revised numbering and subpart structure. The revised Part 204 streamlines contract administration rules in the DFARS text and directs users to PGI for more detailed implementation guidance. Notably, Part 204’s cybersecurity and Cybersecurity Maturity Model Certification (CMMC) frameworks have been moved to Part 240; this is consistent with the movement of information security requirements from Part 4 to Part 40 of the FAR. The new Part 204 also includes the standard plain language drafting throughout.

New Subpart 204.2: The overhaul adds a new Subpart 204.2 (Solicitation, Evaluation, and Award) and consolidates several administrative topics there, including multiple legacy Part 204 sections now reorganized and renumbered under the new structure. Section 204.201 focuses on unique procurement instrument identifiers (PIIDs), and a new series beginning at 204.202-70 establishes rules for uniform line-item structure and numbering, modification handling, accounting classification reference number (ACRN) traceability, and payment allocation and instructions, eliminating large swaths of prior text on these topics and pointing to PGIs for guidance and procedures.
New Subpart 204.3: Overhauled Part 204 also includes a new Subpart 204.3 (Post-Award), focused on post-award reporting and administration. Section 204.301 addresses contract action reporting to the Federal Procurement Data System (FPDS) and directs users to the PGI for the procedures for reporting data. In addition, Section 204.303 establishes the service-contract inventory reporting framework and describes contractor reporting requirements. The subpart also covers SAM-based contract administration procedures and entity identifiers in 204.304 and contract file closeout procedures in 204.308.
Relocation of Cybersecurity Requirements and CMMC to Part 240: Consistent with the reorganization of Parts 4 and 40 of the FAR, the overhaul moves Part 204’s subparts focused on cybersecurity requirements and CMMC to Part 240. Former Subpart 204.73, Safeguarding Covered Defense Information and Cyber Incident Reporting, is now in DFARS Subpart 240.3 and specifically DFARS 240.370. Former DFARS 204.75, Cybersecurity Maturity Model Certification, is now at DFARS 240.371. The prior Part 204 sections are now marked RESERVED.

DFARS Part 205 (Publicizing Contract Actions)

The changes in the overhauled Part 205 are primarily organizational and make the same plain-language updates seen throughout the overhauled parts. In addition, the overhauled parts remove some publication requirements.

Reorganization: Similar to the revisions made to the FAR in the FAR overhaul, DFARS Part 205 has been reordered to align with the acquisition lifecycle, tracking the phases of the acquisition rather than topic. Other topics have been moved to PGI 203. For example, DFARS 205.303 previously included a requirement that departments report certain contract information to the Office of the Assistant to the Secretary of Defense for Public Affairs. That requirement is now in PGI 205.302.
Removal of Notification of DoD Contacts: DFARS 205.205-70 previously required DOD to publish its intent to bundle requirements. The overhauled DFARS deletes this requirement.
Removal of Procedures when Solicitation to Only One Responsible Source: The prior DFARS and PGI included procedures when soliciting to only one responsible source, both of which are removed in the overhauled DFARS and PGI.

DFARS Part 206 (Competition Requirements)

The overhauled DFARS Part 206 makes minimal changes. The primary changes involve renaming and renumbering the subparts and clauses; the substance is largely the same. Additionally, similar to other overhauled DFARS parts, there are plain-language updates throughout.

Renamed Subparts: The overhauled DFARS Part 206 has renamed subparts to track with the contracts-lifecycle based reorganization in other DFARS parts. Subpart 206.1 has been renamed “Presolicitation,” and most of the clauses in Part 206 have been renumbered to fall under that subpart.
Removal of Clause Related to Acquisitions in Support of Operations in Afghanistan: DFARS 206.303-70 previously contained requirements for acquisitions that would support operations in Afghanistan. That has been removed in the overhaul in light of the withdrawal of US troops from Afghanistan.

DFARS Part 207 (Acquisition Planning)

Summary coming soon.

DFARS Part 208 (Required Sources of Supplies and Services)

Overhauled DFARS Part 208 makes plain language revisions and moving requirements to the PGI. In addition, the overhauled DFARS Part 208 moves requirements previously found in DFARS Part 251 relating to contractor use of government supply sources.

Relocation of DFARS Part 251: DFARS Part 208 now includes Subpart 208.1, which governs a contractor’s use of government supply sources, including by using DLA as a source of fuel if fuel is funded by the Defense Working Capital Fund. New Subpart 208.75 incorporates the requirements previously found in Part 251 related to the contractor’s use of Interagency Fleet Management System vehicles.
Revisions to PGI 208: The overhaul also makes changes to PGI 208. While PGI 208 previously provided guidance on limiting sources when making purchases off the federal supply schedule, the overhauled version of the PGI removes that guidance. The PGI has also been updated to incorporate guidance related to contractor use of government supply sources, previously found at PGI 251. In addition, some of the procedural directions previously found in the DFARS have been moved to PGI 208.
Incorporation of Class Deviations: DFARS 208 incorporates DoD Class Deviation 2014-O0011- Determination of Fair and Reasonable Prices When Using Federal Supply Schedule Contracts, which requires ordering contracting officers to make their own determination that the pricing is fair and reasonable.

DFARS Part 209 (Contractor Qualifications)

Unlike many Parts that have been reorganized as part of the DFARS overhaul, Part 209 retains its original structure. Most of the changes are minor as well, reflecting replacement of “shall” with “must,” “insert” for “use,” and simplifying instructions.

Definitions: Rather than pointing to definitions in DFARS 252 clauses for various subparts, the overhaul adds the definitions to the affected subparts.
Reliance on Supplier Performance Risk System (SPRS) and removal of Federal Awardee Performance and Integrity Information System (FAPIIS): Original DFARS 209.105-1 directed contracting officers to consider Contractor Performance Assessment Reporting System records in assessing responsibility. The revised text instructs them to consider the supplier risk assessment in SPRS. References to the now-defunct FAPIIS system are also removed and replaced with the Integrity module in the Contractor Performance Reporting System (CPARS).
Reliance on PGIs: Like other overhauled Parts, the overhaul of DFARS Part 209 streamlines procedures (e.g., DFARS 209.406-3 re referrals to suspending and debarring officials) by directing users to PGIs.
Implementing Clauses unaffected. Like other overhauled Parts, the implementing DFARS clauses from Part 252 are restated in the class deviation text for DFARS Part 209. There are no updates to these clauses.

DFARS Part 210 (Market Research)

Summary coming soon.

DFARS Part 211 (Describing Agency Needs)

Summary coming soon.

DFARS Part 212 (Acquisition of Commercial Products and Services)

Summary coming soon.

DFARS Part 213 (Simplified Acquisition Procedures)

Summary coming soon.

DFARS Part 214 (Sealed Bidding)

The revised DFARS Part 214 primarily reflects a reorganization and tightening of sealed bidding procedures with updated headings and cross-references.

Subpart 214.2, Presolicitation: Subpart 214.2 has been rebranded from “Solicitation of Bids” to “Presolicitation.” Most revisions are conforming in nature, including renumbered sections, renamed headings, and updated cross-references. For example, DFARS 214.209 “Cancellation of invitations before opening” has been replaced with DFARS 214.209-70 “Policy,” which largely carries forward the prior approach while providing minor clarifications regarding when cancellations and resolicitations are required. The subpart also instructs contracting officers in DFARS 214.211-370 to include an evaluation factor for supply chain risk.
Subpart 214.3, Evaluation and Award: Provisions formerly contained in Subpart 214.4 (Opening of Bids and Award of Contract) have been reorganized under Subpart 214.3, “Evaluation and Award.” Topics addressing cancellation after opening, mistakes in bids, and scenarios in which only one offer is received are now addressed within this subpart.
“Other mistakes disclosed before award” now appears at DFARS 214.304-3, which directs readers to the PGI for delegation authority to approve determinations. The revised Subpart 214 also includes two provisions addressing situations in which only one bid is received (214.305-70 and 214.307-70). Both provisions direct contracting officers to follow the procedures at DFARS 215.371.
The DFARS no longer includes DOD-specific procedures for two-step sealed bidding by removing former Subpart 214.5 in its entirety.
The PGI to DFARS Part 214 now houses delegation authority for approving determinations related to mistakes in bids disclosed before award, rather than embedding that authority in the DFARS text.

DFARS Part 215 (Contracting by Negotiation)

Summary coming soon.

DFARS Part 216 (Selecting Contract Types)

Overhauled Part 216 includes few substantive revisions. Most changes were plain language updates for readability. The threshold for postaward debriefings for task and delivery orders was lowered from $15 million to $10 million. In addition, some provisions have been internally re-numbered, and the provisions on incentive contracts in Subpart 216.4 have been reorganized to match the corresponding subpart in overhauled FAR Part 16. The implementing DFARS clauses were not revised.

DFARS Part 217 (Special Contracting Methods)

Reorganization: Overhauled Part 217 includes relatively minor updates for streamlining, reorganization, and plain language edits. As with other FAR and DFARS Parts, some Subparts are reorganized to follow the acquisition lifecycle (presolicitation, evaluation and award, and post-award, as applicable). To that end, it moves the congressional notification requirements to new 217.104-370. This section includes the requirements for DoD components to request authority to enter into multiyear contracts when submitting budgets, for DoD components to notify Congress before awarding multiyear contracts in certain procurements, and for the head of an agency to notify Congress before terminating a multiyear contract. While retaining the actual notification requirements, overhauled Part 217 removes text that previously required agencies to establish reporting procedures to meet those requirements.
Multiyear Contracts: Overhauled Part 217 also removes the requirement for agency heads to consider the commercial life of any plant or equipment, desirability of an option to extend the contract term, and desirability of reserving the right to take title of the plant or equipment when entering into multiyear contracts for services. The new Part 217 removes language that specifically allowed agency heads to enter into a multiyear contract for supplies to promote the national security interest of the United States.
Reliance on PGIs: Finally, the overhauled Part 217 moves prior information regarding ordering procedures, purchase requests, and solicitation and award to the PGI.
Part 252: The class deviation also includes corresponding solicitation provisions and contract clauses in DFARS Part 252. The provisions and clauses cover topics such as exercising options in foreign military sales contracts, surge options, offering property for exchange, job orders and compensation, and inspections, changes, payments, and default for multiyear contracts with job orders. The numbering and substance is unchanged from the current DFARS.

DFARS Part 218 (Emergency Acquisitions)

Overhauled Part 218 moves almost all the prior language on available acquisition flexibilities to PGI 218.7001-1 through PGI 218.7001-7. The new Part 218 retains basic language indicating that flexibilities are available for acquisitions related to defense against or recovery from cyber, nuclear, biological, chemical or radiological attacks, and use of electronic business tools, but the descriptions of those acquisition flexibilities and when they can be used are now within the PGI. The acquisition flexibility content that moved to the PGI is identical to the prior language of Part 218, with some new language regarding the use of electronic business tools for automation such as the 3in1 Tool and Acquisition Cross-Servicing Agreements Global Automated Tracking and Reporting System.

DFARS Part 219 (Small Business Programs)

The overhaul of DFARS Part 219 makes minimal substantive changes to small business policy, but it reorganizes and renumbers the Part to align coverage with lifecycle phases. There are also “plain language” changes to make retained rules and clauses easier to read, which in some cases also involves removing citations to laws or FAR provisions.

Reorganization: DFARS Part 219 is reorganized from the prior topic-based structure (including the original DFARS subparts for policies, SBA cooperation, set-asides, status determinations, small business subcontracting, and the 8(a) program) into lifecycle subparts: Subpart 219.1 (Presolicitation), Subpart 219.2 (Evaluation and Award), and Subpart 219.3 (Postaward). As a result, some provisions are substantively unchanged but distributed into other subparts as part of the reorganization. Similar to other overhauled parts, discussion of “policies” is largely eliminated or replaced with a reference to a particular PGI.
Mentor-Protégé updates (DFARS 219.71): The Department’s Mentor-Protégé coverage remains a discrete subpart, but the subpart title removes the “Pilot” framing and deletes material in DFARS 219.7102, including the reference to a preliminary protégé cybersecurity readiness assessment as an element of the Program. Appendix I remains the location for Mentor-Protégé policy and procedures.
Clause renumbering: The Small Business Subcontracting Plan and Small Business Subcontracting Plan (Test Program) clauses are renumbered, replacing the 252.219-7003 and 252.219-7004 numbering with 252.219-7996 and 252.219-7997; these clauses are also updated with relatively minor non-substantive “plain English” revisions and to reflect the reorganization of DFARS Part 219.

DFARS Part 220 (Reserved in the original DFARS overhaul)

DFARS Part 221 (Reserved in the original DFARS overhaul)

DFARS Part 222 (Application of Labor Laws to Government Acquisitions)

Unlike many Parts that have been reorganized as part of the DFARS overhaul, Part 222 retains most of its original structure. Most of the changes are minor as well, reflecting replacement of “shall” with “must,” “insert” for “use,” and simplifying instructions.

Reliance on PGIs: The biggest change to Part 222 is to streamline provisions by eliminating large portions of text with procedural direction in favor of references to PGIs. This is most notable of these changes are in new DFARS 222.204-171, removal of items from contractor facilities affected by a work stoppage, new DFARS 222.104-172, acquisition of stevedoring services during labor disputes, and new DFARS 222.402-3, construction wage rate requirements statute.
Modest Movement of Provisions: A handful of provisions have been moved. DFARS 222.406, previously entitled “Administration and enforcement,” has been renumbered 222.404-1, under DFARS 222.404 Postaward, and enforcement has been moved to its own provision: DFARS 222.404-2. Original DFARS 222.406-9, withholding from or suspension of contract payments, is streamlined and now subsumed within DFARS 222.404-2 in paragraph (e).
References to Equal Employment Opportunity Deleted: Pursuant to the repeal of Executive Order No. 11246, references to equal employment opportunity and EO 11246 have been deleted.
Implementing Clauses unaffected. Like other overhauled Parts, the implementing DFARS clauses from Part 252 are restated in the class deviation text for DFARS Part 222. There are no updates to these clauses.

DFARS Part 223 (Environment, Sustainable Acquisition, and Material Safety)

Although DFARS Part 223 has a new name, Sustainable Acquisition, Material Safety and Pollution Prevention, the Part’s overhaul is modest in scope and consistent with the broader deregulatory and streamlining posture of the FAR and DFARS overhauls. The changes are largely limited to clarifying existing requirements and removing outdated or duplicative text.

DFARS 223.1: Subpart 223.1 remains substantively the same with some conforming and technical changes. Existing DFARS provisions addressing products containing recovered materials and restrictions on ozone-depleting substances or products that contain or use high global warming potential hydrofluorocarbons are retained.
DFARS Subparts 223.2, 223.4, 223.5, and 223.70: Subpart 223.2, which contained no text in the original DFARS, has now been removed. Subparts 223.4 and .5 are reserved, as is Subpart 223.70.
DFAR Subpart 223.3. Subpart 223.3 has been simplified and retitled “Material Safety,” but remains substantively the same. Revisions primarily consist of clarified language and stylistic edits, including replacement of “shall” with “must,” without altering underlying obligations.
DFAR Subpart 223.71: Subpart 223.71 has been amended to clarify contracting officer responsibilities when contracts authorize the storage, treatment, or disposal of non-DOD-owned hazardous materials on DOD installations. The revised text emphasizes that solicitations and resulting contracts must expressly identify the types and quantities of materials permitted and the conditions under which such activities are authorized.
DFARS Subparts 223.72, 223.73, and 223.74: Subparts addressing safeguarding of sensitive conventional arms, minimization of hexavalent chromium, and prohibition on certain PFAS-containing firefighting agents have received minimal changes. Revisions are largely conforming, consisting of clarified language and non-substantive wording updates.
Part 252: Like other DFARS Parts, the overhaul of FAR Part 223 includes the implementing clauses from Part 252. There are no changes to the dates of these clauses, which should signal no substantive changes.
The PGI to DFARS Part 223 adds operational details to support the revised DFARS requirements. Most notably, PGI 223 formalizes pre-award and post-award safety procedures for ammunition and explosive contracts, including mandatory pre-award safety surveys (including for subcontractors), senior-level approval and disclosure of waivers to DOD Manual 4145.26, structured routing of post-award waiver and site-modification requests, enhanced subcontract oversight, and expedited notification requirements for imminent safety risks. The PGI also reinforces centralized data collection for sustainable products and approval requirements for the authorized use of hexavalent chromium.

DFARS Part 224 (Protection of Privacy and Freedom of Information)

There are no substantive overhauls to this Part, which is comprised of two subparts with only one clause in each.

DFARS Part 225 (Foreign Acquisition)

The substance of the overhauled Part 225 is mostly unchanged, with the revisions focusing on reorganizing rather than rewriting.

Removal of Afghanistan-Related Provisions: The most significant change to the overhauled Part 225 is the removal of provisions and clauses related to Afghanistan. This includes the removal of provisions and clauses related to procuring products or services in support of operations in Afghanistan, preferences for procuring products or services from Afghanistan, requirements to procure products or services from Afghanistan, restricting acquisitions to products or services from Afghanistan, and acquisitions for Afghan military and national police. This also includes removal of Afghanistan-adjacent constructs such as South Caucasus/Central and South Asian State-related definitions and treatment.
Increase in Thresholds: Additionally, certain thresholds for reporting requirements have been increased from $15 million to $20 million for DFARS 252.225-7003 and 252.225-7004, the provision and clause covering intended performance outside the United States and Canada.
Structural Changes and Alignment with Overhaul of the FAR: Finally, the structural changes to the overhauled Part 225 include, first, moving Subpart 225.11 to Subpart 225.6 and, second, moving certain parts of Part 225 to overhauled Part 240, specifically Subpart 240.2. This move to Subpart 240.2 includes original DFARS Subpart 225.7 (Prohibited Sources), and includes DFARS 225.770 (prohibition on acquisition of certain items from Chinese military companies), DFARS 225.771 (state sponsors of terrorism), DFARS 225.772 (prohibitions on certain foreign commercial satellites), and related disclosure requirements. This movement is consistent with the changes to FAR Parts 25 and 40 in the FAR overhaul, which consolidated prohibited source restrictions in Part 40. Additional conforming changes include updates to definitions, cross-references, and numbering revisions to reflect the new organization and structure.

DFARS Part 226 (Other Socioeconomic Programs)

The substance of the overhauled Part 226 is mostly unchanged aside from minor plain language edits. The most change is moving the pre- and post-award procedures for demonstration projects to the PGI.

The three corresponding solicitation provisions and contract clauses in DFARS 252.226 are unchanged in substance and numbering.

DFARS Part 227 (Patent, Data, and Copyrights)

Like many of the other Parts that we have deconstructed, most revisions to Part 227 are focused on streamlining and the use of plain language.

Consolidation of Parallel Subparts for Technical Data and Computer Software: The current DFARS has parallel Subparts addressing rights in technical data (Subpart 227.71) and rights in computer software and computer software documentation (Subpart 227.72). As part of the overhaul, these parallel provisions have been regrouped into a Subpart for other than commercial products, components, services, processes, and computer software (new Subpart 227.71) and a Subpart for commercial products, components, services, processes, and computer software (new Subpart 227.72). Definitions that were previously spread throughout the DFARS are also consolidated as part of the overhaul.
Deletion of Subparts: The overhaul deletes much of Subpart 227.6, Foreign License and Technical Assistance Agreements, but suggests that at least some of the deleted content will appear in the PGI. On the other hand, Subpart 227.70, Infringement Claims, Licenses, and Assignments, is designated as Reserved, without any apparent move to the PGI.
Changes to Special and Existing Works: Following the FAR overhaul, the DFARS overhaul deletes the Special Works and Existing Works clauses at DFARS 252.227-7020 and -7021, respectively, in favor of negotiated licenses in such works.
Expansion of the Government’s Right to Challenge Restrictive Assertions: The overhaul extends the time within which the Government may challenge the validity of a contractor’s restrictive assertions from the later of three years after final payment or three years after delivery of the data/software in question to the later of six years after final payment or six years after delivery of the data/software in question. Data/software that “[a]re the subject of a fraudulently asserted use or release restriction” are added as an additional category as to which there is no time limit on the Government’s ability to challenge the validity of a restrictive assertion.

Other Changes: There are a handful of changes to the language that, although perhaps minor on their face, may have bigger consequences.
- The overhaul directs contracting officers to “[r]esolve questions regarding the validity of asserted restrictions prior to contract award.” DFARS 227.7103-3(a)(2). This contrasts with existing guidance to “avoid challenging asserted restrictions prior to a competitive contract award unless resolution of the assertion is essential for successful completion of the procurement.” DFARS 227.7103-13(b); see also DFARS 227.7203-13(d)(1).
- The overhaul adds that “Agencies should make the determination of the source of development funds” to language addressing the doctrine of segregability. DFARS 227.7103-4(b)(1) (emphasis added); see also DFARS 227.7103-4(b)(2). This begs the question of whether control over application of the doctrine of segregability has shifted from the contractor to the Government.

DFARS Part 228 (Bonds and Insurance)

The changes to Part 228 are minimal. There is no reorganization. “Must” replaces “shall,” “insert” replaces “use,” and a few other words are tweaked. There are slight changes to DFARS 228.371, which identifies when to insert various clauses. First, the instruction to use DFARS 252.228-7001, Ground and Flight Risk, is modestly changed to strike text from paragraph (b)(1)(iii), which applies to non-DOD customers, that stated to include the clause if the non-DOD customer “has not agreed to assume the risk for loss or destruction of, or damages to, the aircraft.” Second, paragraph (b)(1)(iv) in the same provision and addressing commercial derivative aircraft with an FAA certificate of airworthiness maintained to FAA standards deletes “when the work will be performed at a licensed FAA repair station,” presumably because similar text appears in the next sentence describing when the exception in paragraph (b)(1)(iv) applies. The implementing clauses for this Part are unchanged.

DFARS Part 229 (Taxes)

The only changes to this subpart are to replace the term “use” with reference to DFARS clauses with “insert,” to replace “shall” with “must,” and to update PGI references. There are no changes to the implementing clauses in DFARS Part 252.

DFARS Part 230 (Cost Accounting Standards Administration)

The Overhauled DFARS Part 230 and DFARS Procedures, Guidance, and Information (PGI) 230 makes very minor changes. DFARS Part 230 addresses Cost Accounting Standards (CAS) waivers, and the deviation mainly updates cross-references to the Overhauled FAR Part 30 structure. The new DFARS Part 230 also changes the threshold for the agency to report CAS waivers to the CAS Board and Congress for contracts of $100 million or more, up from $15 million.

DFARS Part 231 (Contract Cost Principles and Procedures)

Most of the changes to Overhauled DFARS 231 are modest “plain language” revisions and updates to cross-references to the Overhauled FAR Part 31. One notable change is guidance that educational institutions, for simplicity, can request a waiver of the prohibition in DFARS 231.303 exempting such institutions from the 26% indirect cost limitation in OMB Circulate No. A-21.

DFARS Part 232 (Contract Financing)

Minimal, if Any, Substantive Changes: Overhauled DFARS Part 232 continues to provide DoD-specific contract financing policy, procedures, and clause prescriptions.
- Plain Language: As with many other parts, the Overhauled DFARS Part 232 consolidates and updates text to plainer language, such as “shall” to “must.”
- Shift to PGI: Procedural details related to fraud-related reporting (232.006-5), unusual progress payments approval (232.501-2), electronic payment processing procedures (232.7003), and various contract debt collection steps (232.603 through 232.671) have been removed from the DFARS into the PGI.
- Fast Payment Procedures: A new DFARS 232.12 provision has been added to address the conditions for use of “Fast Payment Procedures” for individual orders exceeding the simplified acquisition threshold for brand-name commercial product commissary resale subsistence or medical supplies for direct shipment overseas.

DFARS Part 233 (Protests, Disputes, and Appeals)

Part 233 is short in the original and overhauled DFARS. Two of the more notable changes appear to strive for greater clarity. First, original DFARS 233.102, then entitled General, provided that if the Government exercised its authority to limit disclosure of information because of supply chain risks with respect to a covered information system, “no action undertaken by the Government under such authority shall be subject to review” in a bid protest at the U.S. Government Accountability Office (GAO) or federal court. The revised provision states: “If the Government limits information disclosure under the authority provided in [new] DFARS 240.271-6(d), actions taken by the Government under such authority are prohibited from challenge in a bid protest” before GAO or federal court. This provision is also renumbered and retitled “Limited information disclosure,” which aligns more clearly with its topic. Second, original DFARS 233.104, Protests, is now DFARS 233.105, and its text is moved to new DFARS 233.105-370, Postaward. The revisions to DFARS 233.105-370 appear also to be aimed at clarity, attempting to provide instruction and timing requirements for suspending performance or terminating awards in response to notice of a GAO bid protest, except when the Department exercises its authority to override the automatic stay. The one implementing clause, Choice of Law (Overseas), is unchanged.

DFARS Part 234 (Major System Acquisition)

Overhauled Part 234 does not remove any of the current content but rather reorganizes that content. The most significant result of this reorganization is the creation of Subpart 234.72, Acquisition Strategy for Major Systems, with streamlined content from the current 234.004. Additional guidance on acquisition strategy was moved to the PGI. Other notable updates to overhauled Part 234 include increasing the threshold for the requirement for an earned value management system from $20 million to $50 million and the threshold for an earned value management system that is approved by the cognizant federal agency from $50 million to $100 million. The class deviation replaces the corresponding solicitation provision and contract clause for earned value management systems at DFARS 252.234-7001 and -7002 with DFARS 252.234-7998 and -7999, respectively, which update those thresholds but are otherwise virtually identical to the predecessor provisions. The deviation retains DFARS 252.234-7003 and -7004 in their original form.

DFARS Part 235 (Research and Development Contracting)

Overhauled Part 235 contains one major change, which is moving the entirety of the section on special use allowances for research facilities acquired by educational institutions (currently in DFARS 252.235.015-70) to the PGI. The PGI text does not substantively differ from the previous DFARS, however. Apart from moving that section to the PGI, most of the overhaul to Part 235 consists of reorganizing to follow the acquisition lifecycle of presolicitation, evaluation and award, and post-award phases and plain-language revisions and updating the DFARS cites.

DFARS Part 236 (Construction and Architect — Engineer Contracts)

The changes made to DFARS Part 236 support the goal of streamlining and simplifying the DFARS. The main changes are to reorganize Part 236 to be more chronological and moving provisions to PGI 236.

Reorganization: The primary changes in the overhauled DFARS Part 236 are organizational. Similar to the other overhaul efforts, this Part has been reorganized to track the acquisition lifecycle. Subpart 236.1 now focuses on Pre-Award issues, Subpart 236.2 involves provisions related to Evaluation and Award, and Subpart 236.3 relates to Postaward issues. Those subparts are then further divided by the topic of the contract and include specific requirements for construction contracts and architect-engineer contracts.
Revised Definitions: The overhauled version removes the definition of “construction activity,” which had previously been defined as the DOD activity responsible for the technical aspects of construction. This change appears to be aimed at streamlining, since that term was not used in the DFARS. The overhaul also updates definition of “Marshallese firm” in DFARS 236.001 to define the term instead of simply referencing the definition in DFARS 252.236-7012, Military Construction on Kwajalein Atoll—Evaluation Preferences.
PGI Changes: The overhaul also moves some provisions previously found in DFARS Part 236 to the corresponding PGI. For example, PGI 236.371 has been added to include guidance for Architect-Engineer post construction evaluation. That guidance was previously found at DFARS 236.604. In addition, PGI 236 has been subdivided to align with the new subparts and similarly tracks the acquisition life-cycle.

DFARS Part 237 (Service Contracting)

Restructuring: One of the most visible changes is the restructuring of DFARS Part 237 to align more closely with revised FAR Part 37. Subparts have been renumbered and retitled, with legacy DFARS sections moved to new locations that track the overhauled FAR’s revised architecture. For example, material previously located in Subpart 237.1 has been redistributed to new subparts addressing personal services (Subpart 237.2), inherently governmental functions (Subpart 237.3), and other service considerations (Subpart 237.8) (e.g., prohibitions on contracting for firefighting or security-guard functions, and contracts for management services, among other things); original DFARS Subpart 237.2, addressing advisory and assistance services, is now Subpart 237.4. One change within the new Subpart 237.4 is removal of the prior admonition in original DFARS 215.101-2-70(b)(3) prohibiting use of lowest price technically acceptable source selection processes when acquiring audit services.
More content moved to PGIs or deleted: Several provisions that previously contained detailed requirements in DFARS text are now reduced to shorter DFARS statements plus Procedure, Guidance, and Information (PGI) references (notably for in‑sourcing notices, surveillance/quality assurance surveillance plan (QASP) guidance, and education service agreement format).
Technical and administrative updates: The overhaul includes numerous technical edits, such as updated statutory citations, revised PGI references, and removal of obsolete provisions.
Clauses renumbered but generally unchanged: DFARS 252.237-7000, Notice of Special Standards of Responsibility, is renumbered DFARS 252.237-7997. Its text is unchanged except to update how to obtain the Government Auditing Standards. DFARS 252.237-7019, Training for Contractor Personnel Interacting with Detainees, is renumbered 252.237-7998, and the PGI reference within the clause is updated. Other DFARS 252 clauses reprinted in the class deviation are not substantively changed.

DFARS Part 239 (Acquisition of Information Technology)

Like revised FAR Part 39, the overhauled version of DFARS Part 239 clarifies that it applies for acquisitions of information and communication technology, including information technology for national security. New DFARS Part 239.1 includes several changes for commercial products and services that mostly align with the statutory preference for acquiring commercial products and services to the maximum extent possible. For example:

Revised DFARS 239.1 adds that its requirements for commercial products and commercial services apply “Presolicitation.”
Revised DFARS 239.170 eliminates any perceived discretion previously given to the contracting officer by changing the use of “may” to “shall” to obtain a written determination from the head of the contracting activity (HCA) that no commercial items can meet the agency’s needs based on the market research conducted. Under the new DFARS 239.170, a contracting officer “must not enter into a contract in excess of the simplified acquisition threshold for information technology products or services that are not commercial products or commercial services unless the head of the contracting activity determines in writing that no commercial items are suitable to meet the agency's needs, as determined through the use of market research appropriate to the circumstances.” This aligns with the statutory and Administration preference for acquiring commercial products and services “to the maximum extent practicable.”
Revised DFARS 239.170 deletes “products” and “services” and replaces them broadly with “items”. This seemingly comports with the requirement under FAR 10.001(a)(3) to conduct market research to determine whether commercial products, services, nondevelopmental items, and commercial components—assuming all qualify as “items” under the new DFARS 239.170—are available to meet the Agency’s needs. But it also conflicts with prior statutory changes that revised references to “commercial items” to separate the categories of “commercial products” and “commercial services.”
Despite its reference to overhauled FAR 10.001(a)(3), overhauled DFARS Part 239.170—like its previous version—appears to omit the requirement for the Agency to evaluate whether its requirements could be modified to acquire available commercial items and components, to the extent they cannot meet the Agency’s requirements as stated. See FAR 10.001(a)(3); see also 10 U.S.C. § 3453(b)(3).

New DFARS Part 239 relocates the requirements for supply chain, security and privacy for computer systems under the original DFARS 239.71-73 to new DFARS Part 252. The remaining changes are primarily limited to changing “shall” to “must”.

DFARS Part 240 (Information Security and Supply Chain)

The DFARS overhaul creates a new Part 240, Information Security and Supply Chain Security, to correspond to the expanded FAR Part 40 in the overhauled FAR. There is also a new PGI 240 to accompany the new DFARS Part. The provisions in new Part 240 were primarily relocated from old Parts 204, 225, and 239. Most of the prohibitions and restrictions are required by statute, and thus there is little substantive change to the provisions aside from plain-language edits.

The new DFARS Part 240 begins with Subpart 240.2, Security Prohibitions and Exclusions, which includes the following:

270, Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services and Equipment, which implements Section 899 of the FY 2018 NDAA and was previously located at DFARS 204.21.
271, Requirements for Information Relating to Supply Chain Risk, which implements 10 U.S.C. 3252 and elements of DoD Instruction 5200.44, Protection of Mission Critical Functions to Achieve Trusted Systems and Networks (TSN) and was previously located at DFARS 239.73.
272, Prohibited Sources, which addresses U.S. Department of the Treasury restrictions, prohibitions on acquisition of certain items from Communist Chinese military companies, prohibitions on contracting with state sponsors of terrorism, and prohibitions on acquisitions of certain foreign commercial satellite services, and was previously located at DFARS 225.7.

New Subpart 240.3, Safeguarding Information, relocates information security requirements from old DFARS Subparts 204.4, 204.73, 204.75, and 239.71, including the Cybersecurity Maturity Model Certification (CMMC) program. The substantive requirements are largely unchanged, although some procedures have been moved to the PGI.

The implementing DFARS clauses for new Part 240 have mostly retained their numbering from the old DFARS (e.g., DFARS 252.204-7012 and 252.204-7021). One exception is old DFARS 252.204-7020, NIST SP 800-171 DoD Assessment Requirements, which is relocated to overhauled DFARS 252.240-7997.

DFARS Part 241 (Acquisition of Utility Services)

The overhaul of DFARS Part 241 relocates the detailed connection and service charge procedure out of DFARS text and into PGI by cross-reference and updates the third-party financed project paragraph numbering and statutory citations, including the stated maximum contract period for renewable energy authority.

Content moved (DFARS text to PGI): DFARS 241.202(1) contained the order of precedence for connection and service charges. The overhauled Part replaces that narrative with a cross-reference to PGI 241.202(1), moving the procedure to PGI.
Third-party financed projects (241.102): The third-party financed project discussion is renumbered (241.102(b)(7) becomes 241.102(b)(3)), and the statutory citations are updated (including replacement of the previous 10 U.S.C. 2394 and 10 U.S.C. 2394a references with 10 U.S.C. 2922 and 10 U.S.C. 2992a). The stated maximum contract period for renewable energy authority is increased from 25 years to 30 years.
Plain-language tightening (241.201): The phrase “as a matter of comity” is removed from the independent regulatory body compliance statement, and the provision is tightened into shorter statements while retaining the same policy.

DFARS Part 242 (Contract Administration)

Consistent with most overhauled DFARS parts, the revised Part 242 focuses primarily on streamlining, consolidation, plain-language modernization, and relocating procedural content from the DFARS text to PGI, along with renumbering and cross-reference updates to align with overhauled FAR Part 42. Notable changes include:

DCMA Administration: The overhaul clarifies when DCMA should administer contracts and when contracting activities may locate contracting office personnel at contractor facilities. The class deviation renumbers DFARS 242.202 to 242.202-70 and provides that DCMA “must administer any contract that requires performance of any contract administration function at or near a contractor facility” unless an exception applies. Contracting activities generally may not locate personnel at contractor facilities except “in support of contracts retained for administration” by DoD activities or as permitted by DFARS Subpart 242.74. The deviation maintains the list of contracts that DoD activities must retain for administration (rather than a “shall not retain ... except” framing) and adds “[c]ontracts awarded to commercial entities for shipbuilding, conversion, and repair at the facilities of such entities” to that retained list. The deviation also breaks out secondary delegations of contract administration, previously embedded within 242.202(e)(1), into a new stand-alone section at 242.202-71.
Relocation of Information to PGI: The deviation relocates criticality designator assignment procedures, production and surveillance reporting requirements, and guidance on mitigating accounting system deficiency risks to the PGI. It reorganizes postaward orientation from original Subpart 242.5 into a new Subpart 242.76 (sections 242.7600 through 242.7605), retaining certain conference-related text in the DFARS (e.g., use of DD Form 1484 and discussion items for contracts with the Cost and Software Data Reporting clause) while moving additional postaward conference content to the PGI. The subpart numbering scheme is realigned throughout to correspond with the revised FAR Part 42 structure – for example, Indirect Cost Rates moves from Subpart 242.7 to Subpart 242.5, and Subpart 242.14 (Traffic and Transportation Management), which contained no supplemental DFARS text, has been removed.
Clause Revisions: Clause 242.1502 on past performance evaluations has been renumbered to 242.1102-70, with a new paragraph (b) directing contracting officers to use DFARS 215.104-70(g) thresholds instead of FAR 42.1102(b)–(d) when evaluating contractor performance. The contract clauses previously at DFARS 252.242-7004, -7005, and -7006 have been renumbered to -7997, -7998, and -7999, respectively, with conforming terminology and citation updates but without substantive changes to the core requirements. Other cross-reference updates include the small business subcontracting plan clause (252.219-7004 to 252.219-7997) and, consistent with the revised FAR Part 42, the CAS-related subpart references in 242.7301(c) (from FAR subparts 30.2 and 30.6 to 30.1, 30.2, and 30.4).
No Change to Business System Requirements: Notably, the class deviation does not make any substantive changes to business system requirements. The criteria, withholding thresholds, and procedures for contractor business systems are unchanged.

DFARS Part 243 (Contract Modifications)

The overhaul of DFARS Part 243 primarily reorganizes and renumbers the Part and updates internal cross-references, while retaining the same controls for unpriced change orders and REA certification. The overhaul also consolidates certain Part 252 clause text into Part 243.

Reorganization and renumbering: The prior 243.170 to 243.172 series is renumbered as 243.270 to 243.272, change order administration and definitization coverage in the prior 243.204 and 243.204-70 series is renumbered into 243.304 and 243.370, and clause prescription structure in the prior 243.205 series is renumbered into the 243.305 series.
Cross-reference updates: The “application of modifications” cross-reference is updated from 204.1671 to 204.201-72, and the employment-impact notification discussion is updated to reference the applicable Part 252 clause (252.249-7002) rather than prescription phrasing tied to 249.7003(c).
Clause text consolidated in-part: The overhauled Part 243 includes the text of 252.243-7001 and 252.243-7002 within the same Part 243 document, rather than presenting only the Part 243 prescription framework without clause text.

DFARS Part 244 (Subcontracting Policies and Procedures)

The Part 244 deviation includes minor revisions. Updates include changing the titles of the subparts to conform to the acquisition lifecycle and plain-language revisions, such as changing “shall” to “must” or “will” and streamlining wording without substantive changes. The requirements and processes for the contracting officer’s consent to subcontracts and role in overseeing purchasing system reviews remains the same.

The Part 244 deviation also updates references to the clauses for Contractor Business Systems and Contractor Purchasing System Administration, which are now located at DFARS 252.242-7005 and 252.244-7998, respectively. Aside from minor wording edits, the Contractor Purchasing System Administration clause is unchanged from previous DFARS 252.244-7001, including the 24 system criteria for the contractor’s purchasing system.

DFARS Part 245 (Government Property)

Summary coming soon.

DFARS Part 246 (Quality Assurance)

As with the other DFARS parts revised in the overhaul, Part 246 adopts plain-language drafting throughout by replacing “shall” with “must” and “use” with “insert” in clause prescriptions. There are relatively few substantive changes to Part 246. Instead, the revisions largely consist of moving certain guidance to the DFARS Procedures, Guidance, and Information (PGI), updating related contract clauses, and reorganizing sections within Part 246.

Deletions: The most significant change in the overhauled Part 246 is the deletion of Section 246.408 (Single-agency assignments of Government contract quality assurance) and its related Subsections 246.408-70 (Subsistence) and 246.408-71 (Aircraft). That section has been relocated to DFARS PGI Part 246. In connection with that change, a new Section 246.201 (General) was added to direct users to PGI Part 246 for the quality assurance procedures removed from the DFARS.
Contract Clauses: The overhaul updates contract clause provisions and numbering. The prior “Warranty of Data” clause reference at 252.246-7001 has been renumbered to 252.246-7998, and its associated technical data rights clause has been renumbered and renamed to 252.227-7989 (Rights in Technical Data, Computer Software, and Computer Software Documentation—Other Than Commercial Products or Commercial Software). As part of the restructuring, the prior Alternate I to the Warranty of Data clause is deleted, and the former Alternate II is now the sole alternate to the clause. However, elsewhere in the overhauled Part 246, the Warranty of Data clause is referenced only generically as a “252.246-7XXX” clause.
Organization: Overhauled Part 246 also includes several internal organizational adjustments. Former Section 246.407 (Nonconforming supplies or services) has been renumbered to 246.407-70. In addition, a new heading 246.703 (Criteria for use of warranties) has been added and former Section 246.704 (Authority for use of warranties) has been relocated to 246.703-1.

DFARS Part 247 (Transportation)

Summary coming soon.

DFARS Part 248 (It is reserved in the original DFARS. The DFARS overhaul of this Part is limited to a class deviation memo instructing use of the overhauled version of FAR Part 48.)

DFARS Part 249 (Termination of Contracts)

The overhaul of DFARS Part 249 makes targeted numbering and organizational changes, including renumbering within the termination contracting officer duties section, deleting an embedded class deviation reference in the congressional notification discussion, and consolidating certain Part 252 clause text into the Part 249 document.

Renumbering within 249.105: “Termination status reports” is renumbered from DFARS 249.105-1 to DFARS 249.105-70, and “release of excess funds” is renumbered so that it appears at DFARS 249.105-1 rather than DFARS 249.105-2. The associated PGI cross-references are updated to match the revised numbering.
Deletion in 249.7001: The embedded reference in the text to DoD Class Deviation 2011-00002 and the related Iraq and Afghanistan exception language is deleted from the congressional notification discussion.
Clause text consolidated in-part: The overhauled Part 249 includes the text of clauses that Part 249 prescribes (including 252.249-7000 and 252.249-7002) within the Part 249 document, rather than limiting the Part 249 presentation to policy and prescriptions.

DFARS Part 250 (Extraordinary Contractual Actions)

The substance of the Overhauled Part 250 is mostly unchanged. The primary change is in 250.102-1, Delegation of authority, which deletes the phrase “level of” that previously preceded “head” to preclude delegating applicable authority below the HCA generally: “Authority under FAR 50.104 to approve actions obligating $90,000 or less may not be delegated below the head of the contracting activity.” The remaining changes to new DFARS Part 250 are limited to changing “shall” to “must.”

DFARS Part 252 (As DOD overhauls each substantive DFARS Part, the class deviation text of that Part includes the implementing Part 252 clauses, either in their original form or as overhauled.)

Deconstructing the DFARS Overhaul

Table of Contents - Summary of Overhauled DFARS Parts

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