WIXLIB

STRUCTUREDEFENSE FEDERAL ACQUISITION REGULATIONPART 241 - ACQUISITION OF UTILITY SERVICES241.1241.2241.5GENERALACQUIRING UTILITY SERVICESSOLICITATION PROVISION AND CONTRACT CLAUSESSUBCHAPTER G—CONTRACT MANAGEMENTPART 242 - CONTRACT NTRACT ADMINISTRATION SERVICESCONTRACT ADMINISTRATION OFFICE FUNCTIONSPOSTAWARD ORIENTATIONCORPORATE ADMINISTRATIVE CONTRACTING OFFICERINDIRECT COST RATESDISALLOWANCE OF COSTSPRODUCTION SURVEILLANCE AND REPORTINGNOVATION AND CHANGE-OF-NAME AGREEMENTSCONTRACTOR PERFORMANCE INFORMATIONCONTRACTOR BUSINESS SYSTEMSVOLUNTARY REFUNDSCONTRACTOR MATERIAL MANAGEMENT AND ACCOUNTING SYSTEMCONTRACTOR INSURANCE/PENSION REVIEWTECHNICAL REPRESENTATION AT CONTRACTOR FACILITIESCONTRACTOR ACCOUNTING SYSTEMS AND RELATED CONTROLSPART 243 - CONTRACT MODIFICATIONS243.1243.2GENERALCHANGE ORDERSPART 244 - SUBCONTRACTING POLICIES AND PROCEDURES244.1244.2244.3244.4GENERALCONSENT TO SUBCONTRACTSCONTRACTORS' PURCHASING SYSTEMS REVIEWSSUBCONTRACTS FOR COMMERCIAL ITEMS AND COMMERCIAL COMPONENTSPART 245 - GOVERNMENT LSOLICITATION AND EVALUATION PROCEDURESAUTHORIZING THE USE AND RENTAL OF GOVERNMENT PROPERTYTITLE TO GOVERNMENT PROPERTYSUPPORT GOVERNMENT PROPERTY ADMINISTRATIONREPORTING, REUTILIZATION, AND DISPOSALPLANT CLEARANCE FORMSPART 246 - QUALITY ASSURANCE246.1246.2GENERALCONTRACT QUALITY REQUIREMENTSviii

DEFENSE FEDERAL ACQUISITION ONTRACT CLAUSESGOVERNMENT CONTRACT QUALITY ASSURANCEACCEPTANCEMATERIAL INSPECTION AND RECEIVING REPORTSWARRANTIESCONTRACTOR LIABILITY FOR LOSS OF OR DAMAGE TO PROPERTY OF THE GOVERNMENTPART 247 - TRANSPORTATION247.1247.2247.3247.5GENERALCONTRACTS FOR TRANSPORTATION OR FOR TRANSPORTATION-RELATED SERVICESTRANSPORTATION IN SUPPLY CONTRACTSOCEAN TRANSPORTATION BY U.S.-FLAG VESSELSPART 248 - RESERVEDPART 249 - TERMINATION OF CONTRACTS249.1249.5249.70GENERAL PRINCIPLESCONTRACT TERMINATION CLAUSESSPECIAL TERMINATION REQUIREMENTSPART 250 - EXTRAORDINARY CONTRACTUAL ACTIONS250.1EXTRAORDINARY CONTRACTUAL ACTIONSPART 251 - USE OF GOVERNMENT SOURCES BY CONTRACTORS251.1251.2CONTRACTOR USE OF GOVERNMENT SUPPLY SOURCESCONTRACTOR USE OF INTERAGENCY FLEET MANAGEMENT SYSTEM (IFMS)SUBCHAPTER H—CLAUSES AND FORMSPART 252 - SOLICITATION PROVISIONS AND CONTRACT CLAUSES252.1252.2INSTRUCTIONS FOR USING PROVISIONS AND CLAUSESTEXT OF PROVISIONS AND CLAUSESPART 253 - FORMS253.2253.3PRESCRIPTION OF FORMSILLUSTRATION OF FORMSSUBCHAPTER I—AGENCY SUPPLEMENTARY REGULATIONSAPPENDIX A —ARMED SERVICES BOARD OF CONTRACT APPEALSPart 1—CharterAPPENDIX B —RESERVEDix

STRUCTUREDEFENSE FEDERAL ACQUISITION REGULATIONAPPENDIX C —RESERVEDAPPENDIX D —RESERVEDAPPENDIX E —RESERVEDAPPENDIX F —MATERIAL INSPECTION AND RECEIVING REPORT12345678INTRODUCTIONCONTRACT QUALITY ASSURANCE ON SHIPMENTS BETWEEN CONTRACTORSPREPARATION OF THE WIDE AREA WORKFLOW (WAWF) RECEIVING REPORT (RR), WAWFREPARABLE RECEIVING REPORT (WAWF RRR), AND WAWF ENERGY RRPREPARATION OF THE DD FORM 250 AND DD FORM 250CDISTRIBUTION OF WIDE AREA WORKFLOW RECEIVING REPORT (WAWF RR), DD FORM 250AND DD FORM 250CPREPARATION OF THE DD FORM 250-1 (LOADING REPORT)PREPARATION OF THE DD FORM 250-1 (DISCHARGE REPORT)DISTRIBUTION OF THE DD FORM 250-1APPENDIX G —RESERVEDAPPENDIX H —DEBARMENT AND SUSPENSION PROCEDURESAPPENDIX I —POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR-PROTEGEPROGRAMDefinitions.Credit agreements.Reporting requirements.x

PART 201 - FEDERAL ACQUISITION REGULATIONS 1201.303SUBPART 201.1 —PURPOSE, AUTHORITY, ISSUANCEPurpose.Applicability.Issuance.Copies.OMB approval under the Paperwork Reduction Act.Certifications.Statutory acquisition-related dollar thresholds – adjustment forinflation.Peer reviews.SUBPART 201.2 —ADMINISTRATIONMaintenance of the FAR.The two councils.Maintenance of Procedures, Guidance, and Information.SUBPART 201.3 —AGENCY ACQUISITION REGULATIONSPolicy.Publication and gency control and compliance procedures.SUBPART 201.4 —DEVIATIONS FROM THE FARPolicy.Individual deviations.Class deviations.SUBPART 201.6 —CAREER DEVELOPMENT,CONTRACTING AUTHORITY, AND RESPONSIBILITIESContracting officers.Responsibilities.Contract clause.Selection, appointment, and termination of appointment forcontracting officers.Selection.Appointment.Appointment of property administrators and plant clearanceofficers.201-1

This page intentionally left blank.201-2

SUBPART 201.1 —PURPOSE, AUTHORITY, ISSUANCE201.170SUBPART 201.1 —PURPOSE, AUTHORITY, ISSUANCE201.101 Purpose.(1) The defense acquisition system, as defined in 10 U.S.C 2545, exists to manage the investments of the United Statesin technologies, programs, and product support necessary to achieve the national security strategy prescribed by the Presidentpursuant to section 108 of the National Security Act of 1947 (50 U.S.C. 3043) and to support the United States ArmedForces.(2) The investment strategy of DoD shall be postured to support not only the current United States armed forces, butalso future armed forces of the United States.(3) The primary objective of DoD acquisition is to acquire quality supplies and services that satisfy user needs withmeasurable improvements to mission capability and operational support at a fair and reasonable price.201.104 Applicability.The FAR and the Defense Federal Acquisition Regulation Supplement (DFARS) also apply to purchases and contractsby DoD contracting activities made in support of foreign military sales or North Atlantic Treaty Organization cooperativeprojects without regard to the nature or sources of funds obligated, unless otherwise specified in this regulation.201.105 Issuance.201.105-3 Copies.The DFARS and the DFARS Procedures, Guidance, and Information (PGI) are available electronically via the World WideWeb at http://www.acq.osd.mil/dpap/dars/index.htm.201.106 OMB approval under the Paperwork Reduction Act.See PGI 201.106 for a list of the information collection and record keeping requirements contained in this regulation thathave been approved by the Office of Management and Budget.201.107 Certifications.In accordance with 41 U.S.C. 1304, a new requirement for a certification by a contractor or offeror may not be included inthe DFARS unless—(1) The certification requirement is specifically imposed by statute; or(2) Written justification for such certification is provided to the Secretary of Defense by the Under Secretary of Defense(Acquisition, Technology, and Logistics), and the Secretary of Defense approves in writing the inclusion of such certificationrequirement.201.109 Statutory acquisition-related dollar thresholds – adjustment for inflation.(a)(i) 41 U.S.C. 1908(d) requires the adjustment for inflation of all statutory acquisition-related dollar thresholds in theDFARS be applied to contracts and subcontracts without regard to the date of award of the contract or subcontract, exceptthresholds based on the Wage Rate Requirements statute, the Service Contract Labor Standards statute, or established by theUnited States Trade Representative pursuant to the Trade Agreement Act, which are not escalated by the statute.(ii) Section 814(b) of the National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81) requires that thethreshold established in 10 U.S.C. 2253(a)(2) for the acquisition of right-hand drive passenger sedans be included in the listof dollar thresholds that are subject to adjustment for inflation in accordance with the requirements of 41 U.S.C. 1908, and isadjusted pursuant to such provisions, as appropriate.(d) A matrix showing the most recent escalation adjustments of statutory acquisition-related dollar thresholds is availableat PGI 201.109 .201.170 Peer reviews.(a) DPC DoD peer reviews.(1) The Office of the Principal Director, Defense Pricing and Contracting (DPC), using the procedures at , will organizeteams of reviewers and facilitate peer reviews for solicitations and contracts, as follows:(i) DPC will conduct the preaward peer reviews for competitive procurements prior to the in three phases of theacquisition (see (a)) for all procurements with an estimated value of 1 billion or more under major defense acquisition201.1-1

201.170DEFENSE FEDERAL ACQUISITION REGULATIONprograms for which the Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)) is the milestone decisionauthority or USD(A&S) designates as requiring a peer review regardless of value. DoD components may request DPC-ledpeer reviews for acquisitions valued below the 1 billion threshold. DPC will conduct these reviews upon approval by theDirector, Defense Pricing and Contracting (Contract Policy).](ii) DPC will conduct the preaward peer reviews for noncompetitive procurements prior to the two phases of theacquisition (see (b))] for contract actions, e.g., new contracts, modifications to existing contracts, requests for equitableadjustment, claims valued at 1 billion or more, or for any other contract action USD(A&S) designates as requiring a peerreview regardless of value. DoD components may request DPC-led peer reviews for contract actions valued below the 1billion threshold. DPC will conduct these reviews upon approval by the Director, Defense Pricing and Contracting (Price,Cost and Finance).(iii) Use the following criteria to identify actions that are subject to peer review (see also FAR 1.108(c), Dollarthresholds):(A) If the not-to-exceed amount for an undefinitized contract action or an unpriced change order exceeds thepeer review threshold, then the resultant definitization modification(s) will be subject to peer review regardless of actualperformance up to the point of definitization.(B) For indefinite delivery indefinite quantity (IDIQ) contracts that will establish pricing terms that apply toorders, use the total maximum dollar value for purposes of the peer review threshold. IDIQ contracts that will not establishpricing terms in the basic contract are not subject to peer review, but individual orders that exceed the threshold are subject topeer review.(C) For noncompetitive contract actions, use the greater of the following when considering the firm requirementfor all supplies or services:(1) The approved Government objective amount.(2) The contractor proposed amount.(2) To facilitate planning for peer reviews, the military departments and defense agencies shall provide a rolling annualforecast of acquisitionsthat will be subject to DPC peer reviews at the end of each quarter (i.e., March 31; June 30; September30; December 31).(i) Military departments and defense agencies shall submit quarterly forecasts for competitive peer reviews to theDirector, Defense Pricing and Contracting (Contract Policy), at osd.pentagon.ousd-a-s.mbx.dpc-cp@mail.mil.(ii) Military departments and defense agencies shall submit quarterly forecasts for noncompetitive peer reviews tothe Director, Defense Pricing and Contracting (Price, Cost and Finance), at osd.pentagon.ousd-a-s.mbx.dpc-pcf@mail.mil(b) Component peer reviews. The military departments and defense agencies shall establish procedures for—(1) Preaward peer reviews of solicitations for competitive procurements not subject to 201.170(a)(1)(i);and(2) Preaward peer reviews of noncompetitive procurements not subject to 201.170(a)(1)(ii).201.1-2

201.201-70SUBPART 201.2 —ADMINISTRATIONSUBPART 201.2 —ADMINISTRATION201.201 Maintenance of the FAR.201.201-1 The two councils.(c) The composition and operation of the DAR Council is prescribed in DoD Instruction 5000.35, Defense AcquisitionRegulations (DAR) System.(d)(i) Departments and agencies process proposed revisions of FAR or DFARS through channels to the Director of theDAR Council. Process the proposed revision as a memorandum in the following format, addressed to the Director, DARCouncil, OUSD(AT&L), 3060 Defense Pentagon, Washington, DC 20301-3060; datafax (571) 372-6094.I. PROBLEM: Succinctly state the problem created by current FAR and/or DFARS coverage and describe thefactual and/or legal reasons necessitating the change to the regulation.II. RECOMMENDATION: Identify the FAR and/or DFARS citations to be revised. Attach as TAB A a copy ofthe text of the existing coverage, conformed to include the proposed additions and deletions. Indicate deleted coverage withdashed lines through the current words being deleted and insert proposed language in brackets at the appropriate locationswithin the existing coverage. If the proposed deleted portion is extensive, it may be outlined by lines forming a box withdiagonal lines drawn connecting the corners.III. DISCUSSION: Include a complete, convincing explanation of why the change is necessary and how therecommended revision will solve the problem. Address advantages and disadvantages of the proposed revision, as well asany cost or administrative impact on Government activities and contractors. Identify any potential impact of the change onautomated systems, e.g., automated financial and procurement systems. Provide any other background information that wouldbe helpful in explaining the issue.IV. COLLATERALS: Address the need for public comment (FAR 1.301(b) and Subpart 1.5), the PaperworkReduction Act, and the Regulatory Flexibility Act (FAR 1.301(c)).V. DEVIATIONS: If a recommended revision of DFARS is a FAR deviation, identify the deviation and includeunder separate TAB a justification for the deviation that addresses the requirements of 201.402 (2). The justification shouldbe in the form of a memorandum for the Director of Defense Procurement and Acquisition Policy, Office of the UnderSecretary of Defense (Acquisition, Technology, and Logistics).(ii) The public may offer proposed revisions of FAR or DFARS by submission of a memorandum, in the format(including all of the information) prescribed in paragraph (d)(i) of this subsection, to the Director of the DAR Council.201.201-70 Maintenance of Procedures, Guidance, and Information.The DAR Council is also responsible for maintenance of the DFARS Procedures, Guidance, and Information (PGI).201.2-1

This page intentionally left blank.201.2-2

201.303SUBPART 201.3 —AGENCY ACQUISITION REGULATIONSSUBPART 201.3 —AGENCY ACQUISITION REGULATIONS201.301 Policy.(a)(1) DoD implementation and supplementation of the FAR is issued in the Defense Federal Acquisition RegulationSupplement (DFARS) under authorization and subject to the authority, direction, and control of the Secretary of Defense. TheDFARS contains—(i) Requirements of law;(ii) DoD-wide policies;(iii) Delegations of FAR authorities;(iv) Deviations from FAR requirements; and(v) Policies/procedures that have a significant effect beyond the internal operating procedures of DoD or asignificant cost or administrative impact on contractors or offerors.(2) Relevant procedures, guidance, and information that do not meet the criteria in paragraph (a)(1) of this section areissued in the DFARS Procedures, Guidance, and Information (PGI).(b) When Federal Register publication is required for any policy, procedure, clause, or form, the department or agencyrequesting Under Secretary of Defense (Acquisition, Technology, and Logistics) (USD(AT&L)) approval for use of thepolicy, procedure, clause, or form (see 201.304 (1)) must include an analysis of the public comments in the request forapproval. Information on determining when a clause requires publication in the Federal Register and approval in accordancewith 201.304 (1) is provided at PGI 201.301 (b).201.303 Publication and codification.(a)(i) The DFARS is codified under chapter 2 in Title 48, Code of Federal Regulations.(ii) To the extent possible, all DFARS text (whether implemental or supplemental) is numbered as if it wereimplemental. Supplemental numbering is used only when the text cannot be integrated intelligibly with its FAR counterpart.(A) Implemental numbering is the same as its FAR counterpart, except when the text exceeds one paragraph,the subdivisions are numbered by skipping a unit in the FAR 1.105-2(b)(2) prescribed numbering sequence. For example,three paragraphs implementing FAR 19.501 would be numbered 219.501(1), (2), and (3) rather than (a), (b), and (c). Threeparagraphs implementing FAR 19.501(a) would be numbered 219.501(a)(i), (ii), and (iii) rather than (a)(1), (2), and (3).Further subdivision of the paragraphs follows the prescribed numbering sequence, e.g., 219.501(1)(i)(A)(1)(i).(B) Supplemental numbering is the same as its FAR counterpart, with the addition of a number of 70 and upor (S-70) and up. Parts, subparts, sections, or subsections are supplemented by the addition of a number of 70 and up.Lower divisions are supplemented by the addition of a number of (S-70) and up. When text exceeds one paragraph, thesubdivisions are numbered using the FAR 1.105-2(b)(2) prescribed sequence, without skipping a unit. For example, DFARStext supplementing FAR 19.501 would be numbered 219.501-70. Its subdivisions would be numbered 219.501-70(a), (b), and(c).(C) Subdivision numbering below the 4th level does not repeat the numbering sequence. It uses italicized Arabicnumbers and then italicized lower case Roman numerals.(D) An example of DFARS numbering is in Table 1-1, DFARS Numbering.(iii) Department/agency and component supplements must parallel the FAR and DFARS numbering, exceptdepartment/agency supplemental numbering uses subsection numbering of 90 and up, instead of 70 and up.TABLE 1-1, DFARS NUMBERINGFARIs Implemented AsIs Supplemented 1(a)219.501-1(a)(S-70)201.3-1

201.304DEFENSE FEDERAL ACQUISITION REGULATIONTABLE 1-1

232.6 contract debts 232.7 contract funding 232.8 assignment of claims 232.9 prompt payment 232.10 performance-based payments 232.11 electronic funds transfer 232.70 electronic submission and processing of payment requests and receiving reports 232.71 levies on contract payments 232.72 reserved part 233 - protests, disputes, and appeals 233.1 .