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Class Deviation 2026-O0025 - DFARS RFO Implementation (Part 40), Revision 3

Summary

This deviation revises and supersedes Class Deviation 2026-O0025, Revision 1 issued on 2026-06-29. It implements revised Defense Federal Acquisition Regulation Supplement (DFARS) Part 240 and new DFARS Procedures, Guidance, and Information (PGI) 240 under the Revolutionary Federal Acquisition Regulation (FAR) Overhaul. Contracting officers must not apply the Chinese military company or covered lobbyist definitions to Alibaba Group Holding Limited and Alibaba Group (U.S.) Inc. based on their 1260H listing, and must remove or revise Cybersecurity Maturity Model Certification (CMMC) requirements per a court order and Department of War Chief Information Officer guidance.

Required Contracting Officer Actions

  1. Effective immediately, do not apply the definition of Chinese military company or covered lobbyist at DFARS subpart 240.70 to Alibaba Group Holding Limited and Alibaba Group (U.S.) Inc. based on their inclusion on the 1260H list.
  2. For all other purposes, treat Alibaba Group Holding Limited and Alibaba Group (U.S.) Inc. as a Chinese military company as published at 91 FR 35189.
  3. Collaborate with requiring activities to remove or revise CMMC requirements in new and existing solicitations and contracts.
  4. Issue solicitation amendments to remove suspended CMMC Phase 2 requirements as soon as practicable.
  5. For existing contracts containing CMMC Phase 2 requirements, remove them via modification prior to the next option exercise or next scheduled administrative modification.
  6. Use the revised FAR Part 40 from the Revolutionary FAR Overhaul (RFO) web page in lieu of the codified text at 48 CFR chapter 1.
  7. Use the attached revised DFARS Part 240, Information Security and Supply Chain Security.
  8. Use the attached new DFARS PGI 240, Information Security and Supply Chain Security.

Affected Provisions and Clauses

252.204-7000, (Clause)

  • Prescribed in: 204.404-70(a)
  • Change type: MODIFIED
  • Action: Add clause 252.204-7000

252.204-7003, (Clause)

  • Prescribed in: 204.404-70(b)
  • Change type: MODIFIED
  • Action: Add clause 252.204-7003

252.204-7008, (Clause)

  • Prescribed in: 204.7304(a)
  • Change type: MODIFIED
  • Action: Add clause 252.204-7008

252.204-7009, (Clause)

  • Prescribed in: 204.7304(b)
  • Change type: MODIFIED
  • Action: Add clause 252.204-7009

252.204-7012, (Clause)

  • Prescribed in: 204.7304(c)
  • Change type: MODIFIED
  • Action: Modify clause 252.204-7012

252.204-7016, (Clause)

  • Prescribed in: 204.2105(a)
  • Change type: MODIFIED
  • Action: Add clause 252.204-7016

252.204-7017, (Clause)

  • Prescribed in: 204.2105(b)
  • Change type: MODIFIED
  • Action: Add clause 252.204-7017

252.204-7018, (Clause)

  • Prescribed in: 204.2105(c)
  • Change type: MODIFIED
  • Action: Add clause 252.204-7018

252.204-7021, (Clause)

  • Prescribed in: 204.7504(a)
  • Change type: MODIFIED
  • Action: Add clause 252.204-7021

252.204-7025, (Clause)

  • Prescribed in: 204.7504(b)
  • Change type: MODIFIED
  • Action: Add clause 252.204-7025

252.225-7048, (Clause)

  • Prescribed in: 225.7901-4
  • Change type: MODIFIED
  • Action: Modify clause 252.225-7048

252.225-7049, (Clause)

  • Prescribed in: 225.772-5(a)
  • Change type: MODIFIED
  • Action: Add clause 252.225-7049

252.225-7050, (Clause)

  • Prescribed in: 225.771-5
  • Change type: MODIFIED
  • Action: Add clause 252.225-7050

252.225-7051, (Clause)

  • Prescribed in: 225.772-5
  • Change type: MODIFIED
  • Action: Add clause 252.225-7051

252.225-7964, (Clause)

  • Change type: MODIFIED
  • Action: Add clause 252.225-7964

252.227-7989, (Clause)

  • Change type: MODIFIED
  • Action: Modify clause 252.227-7989

252.239-7000, (Clause)

  • Prescribed in: 239.7103(a)
  • Change type: MODIFIED
  • Action: Add clause 252.239-7000

252.239-7010, (Clause)

  • Prescribed in: 239.7604(b)
  • Change type: MODIFIED
  • Action: Modify clause 252.239-7010

252.239-7017, (Clause)

  • Prescribed in: 239.7306(a)
  • Change type: MODIFIED
  • Action: Add clause 252.239-7017

252.239-7018, (Clause)

  • Prescribed in: 239.7306(b)
  • Change type: MODIFIED
  • Action: Add clause 252.239-7018

252.240-7007, (Clause)

  • Change type: MODIFIED
  • Action: Add clause 252.240-7007

252.240-7992, (Clause)

  • Change type: MODIFIED
  • Action: Add clause 252.240-7992

252.240-7993, (Clause)

  • Change type: MODIFIED
  • Action: Add clause 252.240-7993

252.240-7994, (Clause)

  • Change type: MODIFIED
  • Action: Add clause 252.240-7994

252.240-7995, (Clause)

  • Change type: MODIFIED
  • Action: Add clause 252.240-7995

252.240-7996, (Clause)

  • Change type: MODIFIED
  • Action: Add clause 252.240-7996

252.240-7997, (Clause)

  • Change type: MODIFIED
  • Action: Add clause 252.240-7997

252.240-7998, (Clause)

  • Change type: MODIFIED
  • Action: Add clause 252.240-7998

252.240-7999, (Clause)

  • Change type: MODIFIED
  • Action: Add clause 252.240-7999

52.204-2, (Clause)

  • Prescribed in: 4.404(a)
  • Change type: MODIFIED
  • Action: Modify clause 52.204-2

52.204-7, (Clause)

  • Prescribed in: 4.1105(a)
  • Change type: MODIFIED
  • Action: Modify clause 52.204-7

52.240-90, (Clause)

  • Change type: MODIFIED
  • Action: Modify clause 52.240-90

52.240-91, (Clause)

  • Change type: MODIFIED
  • Action: Modify clause 52.240-91

Notes

Alibaba court order scope: The court order in Alibaba Group Holding Limited, et al v U.S. Department of Defense, et al (case no. 26-cv-6227-EKL) temporarily waives the 10 U.S.C. 4663 prohibition for Alibaba only. The waiver applies until the court resolves the motion for a temporary restraining order and preliminary injunction or until 60 days after the court holds a hearing, whichever comes first.

CMMC suspension scope: The Department of War Chief Information Officer memorandum dated 2026-07-13 suspends the November 2026 CMMC Phase 2 transition. Requiring activities may include CMMC Level 1 (Self) or Level 2 (Self) assessments. Baseline compliance with National Institute of Standards and Technology Special Publication (NIST SP) 800-171 Rev 2 remains required under DFARS 252.204-7012.

Deviation duration: This deviation remains in effect until rescinded or incorporated into the FAR, DFARS and DFARS PGI.

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

Suggested Questions

You can ask your AI assistant:

  • What actions do I need to take for this deviation?
  • Does this deviation affect commercial acquisitions under Part 12?
  • Which clauses need to be removed from my existing contracts?
  • How does this deviation change 252.204-7000 specifically?
  • Are there any SAM registration implications?