Class Deviation 2024-O0005 - Temporary Authorizations for Covered Contracts Related to Ukraine, Taiwan, and Israel

Summary

This deviation rescinds Class Deviation 2023-O0003 Revision 2 and extends temporary acquisition flexibilities to covered contracts related to Ukraine, Taiwan and Israel. Contracting Officers may use noncompetitive procedures, elevated thresholds and streamlined authorities for qualifying contracts. The deviation remains in effect until September 30, 2028.

Required Contracting Officer Actions

1. Determine whether a contract qualifies as a 'covered contract' under the definitions in paragraph (A) before applying any deviation authority.
2. When using paragraph (B) authority, notify congressional defense committees and Defense Pricing and Contracting (DPC) at osd.pentagon.ousd-a-s.mbx.dpc-cp@mail.mil no later than 7 days before contract award.
3. After award using any deviation authority, notify congressional defense committees and DPC within 7 days of award with all required reporting elements per paragraph (H)(2).
4. Apply elevated micro-purchase thresholds ($20,000 inside the U.S.; $35,000 outside) and simplified acquisition thresholds ($800,000 inside the U.S.; $1,500,000 outside) for covered contracts.
5. Use Federal Acquisition Regulation Subpart 13.5 simplified procedures for covered contracts up to $15 million when market research supports commercial product or service offers.
6. For sole-source awards over $20 million treated as commercial, do not exempt the contract from cost accounting standards or certified cost or pricing data requirements.
7. For undefinitized contract actions on covered contracts, obtain head-of-agency waiver before exceeding Defense Federal Acquisition Regulation Supplement (DFARS) 217.7404 limitations.
8. For multiyear procurements under paragraph (G), apply only to the listed munitions and systems; confirm applicable DFARS 217.170 and 217.172 exemptions before proceeding.

Notes

Supersession: This deviation rescinds and supersedes Class Deviation 2023-O0003 Revision 2, issued September 18, 2023. COs should discontinue reliance on that prior deviation immediately.

Delegation of Authority: The head of an agency may delegate FAR 6.302-7(a)(2) determination authority. Delegation may go no lower than a general or flag officer or a civilian above GS-15.

Commercial Treatment Limitation: Treating a product or service as commercial does not exempt sole-source awards over $20 million from cost accounting standards or certified cost or pricing data requirements.

Technical Data Packages: The 10 U.S.C. 7542 funding restriction on transferring technical data packages to foreign countries does not apply to large-caliber cannon production for Ukraine, Taiwan or Israel support.

Multiyear Munitions List: Paragraph (G)(2) lists 23 specific munitions and systems eligible for multiyear procurement authority. COs must confirm the item appears on the list before applying this authority.

Expiration: This deviation expires September 30, 2028. COs should monitor that date and revert to standard FAR and DFARS procedures afterward.

Point of Contact: Questions should be directed to Ms. Kimberly Ziegler, DPC/DARS, at kimberly.r.ziegler.civ@mail.mil.

Suggested Questions