Class Deviation 2026-O0010 - DFARS RFO Implementation (Part 49)

Status: Active

Signed By: John M. Tenaglia, Principal Director, Defense Pricing, Contracting, and Acquisition Policy

Scope: All DoD contracting officers

Applies to DAF/Air Force: Yes

Authority: E.O. 14275, Restoring Common Sense to Federal Procurement (Section 2); E.O. 14265, Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base (Section 4(a)); OMB Memorandum M-25-26, Overhauling the Federal Acquisition Regulation (May 2, 2025)

Summary

Effective 2026-02-01, contracting officers must use revised versions of Federal Acquisition Regulation (FAR) Part 49 and Defense FAR Supplement (DFARS) Part 249 covering termination of contracts. The revised FAR Part 49 is published on the Revolutionary FAR Overhaul (RFO) web page. The revised DFARS Part 249 and DFARS Procedures, Guidance, and Information (PGI) 249 are attached to this deviation.

Required Contracting Officer Actions

Effective 2026-02-01, use the revised FAR Part 49 from the RFO web page. It replaces the codified text at 48 CFR chapter 1.
Effective 2026-02-01, use the attached DFARS Part 249. It replaces the codified text at 48 CFR chapter 2.
Effective 2026-02-01, use the attached DFARS PGI 249. It replaces the PGI text on the Defense Pricing, Contracting, and Acquisition Policy web page.
Insert clause 252.249-7000, Special Termination Costs, in incrementally funded contracts when approved by the agency head. Use only when the conditions at 249.501-70 are met.
Insert clause 252.249-7002, Notification of Anticipated Contract Termination or Reduction. Use in all contracts under a major defense program.
For terminations involving reductions of 100 or more contractor employees, clear proposed terminations through department and agency liaison offices before releasing the termination notice.
For contracts under major defense programs, follow the notification procedures at DFARS 249.7003 and PGI 249.7001 when anticipating contract terminations or substantial reductions.

Affected Provisions and Clauses

252.249-7000, (Clause)

Prescribed in: 249.501-70
Change type: MODIFIED
Action: Add clause 252.249-7000

252.249-7001, (Clause)

Change type: MODIFIED
Action: Modify clause 252.249-7001

252.249-7002, (Clause)

Prescribed in: 249.7004
Change type: MODIFIED
Action: Add clause 252.249-7002

Notes

Expiration: This deviation remains in effect until rescinded or incorporated into the FAR, DFARS and DFARS PGI. There is no fixed expiration date.

Inquiries: Direct questions about this deviation to osd.pentagon.ousd-a-s.mbx.dfars@mail.mil.

Canadian Commercial Corporation: Terminations involving the Canadian Commercial Corporation must follow the Letter of Agreement between the Department of Defence Production (Canada) and DoD. Contact the Office of the Principal Director, Defense Pricing, Contracting, and Acquisition Policy for a copy.