Class Deviation 2026-O0052 - DFARS RFO Implementation (DFARS Part 270)

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: Executive Order (EO) 14275, Restoring Common Sense to Federal Procurement; EO 14265, Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base; Office of Management and Budget Memorandum M-25-26, Overhauling the Federal Acquisition Regulation (2025-05-02)

Summary

This deviation replaces codified Defense Federal Acquisition Regulation Supplement (DFARS) Part 270, Defense Contracting Programs, and its associated Procedures, Guidance, and Information (PGI) with revised versions. It implements EO 14275 and EO 14265, which direct removal of unnecessary procurement regulations. The key substantive change removes the justification and approval requirement for sole-source contracts under the Pilot Program to Incentivize Contracting with Employee-Owned Businesses, consistent with FAR 6.103-5.

Required Contracting Officer Actions

Effective immediately, use the attached DFARS Part 270 in lieu of the text codified at 48 CFR chapter 2.
Effective immediately, use the attached PGI 270 in lieu of the PGI text on the Defense Pricing, Contracting, and Acquisition Policy web page.
Insert provision 252.270-7000, Pilot Program to Incentivize Contracting with Employee-Owned Businesses--Representation, in solicitations that include clause 252.270-7002. Use in solicitations including commercial (Part 12) acquisitions, except solicitations solely for commercially available off-the-shelf (COTS) items.
Unless waived under 270.103(b)(3), insert provision 252.270-7001, Pilot Program to Incentivize Contracting with Employee-Owned Businesses--Subcontracting Certification, in solicitations that include clause 252.270-7002. Use in solicitations including commercial (Part 12) acquisitions, except solicitations solely for COTS items.
Insert clause 252.270-7002, Pilot Program to Incentivize Contracting with Employee-Owned Businesses, in solicitations and contracts for approved pilot program acquisitions. Use in commercial (Part 12) acquisitions, except solicitations and contracts solely for COTS items.
Do not award contracts under DFARS Subpart 270.1 without prior approval from the Under Secretary of Defense (Acquisition and Sustainment), Office of the Principal Director, Defense Pricing, Contracting, and Acquisition Policy (DPCAP), Contract Policy (DPCAP/CP).
Submit pilot program applications to DPCAP/CP via email at osd.pentagon.ousd-a-s.mbx.dpc-cp@mail.mil. Include all items listed in PGI 270.104(a).
Do not issue a solicitation before receiving DPCAP/CP approval to participate in the pilot program.
No later than 60 days after contract period of performance ends, submit contractor performance information and reporting data to DPCAP/CP per PGI 270.104(d).
Do not obtain a justification and approval for contracts awarded under this pilot program authority. FAR 6.103-5 clarifies these contracts do not require the justifications described in FAR 6.104, except for certain sole-source 8(a) contracts.
Address inquiries about this deviation to osd.pentagon.ousd-a-s.mbx.dfars@mail.mil.

Affected Provisions and Clauses

252.270-7000, (Clause)

Prescribed in: 270.105(a)
Change type: MODIFIED
Action: Add clause 252.270-7000

252.270-7001, (Clause)

Prescribed in: 270.105(b)
Change type: MODIFIED
Action: Modify clause 252.270-7001

252.270-7002, (Clause)

Prescribed in: 270.105(c)
Change type: MODIFIED
Action: Add clause 252.270-7002

Notes

Pilot Program Expiration: The authority to award contracts under DFARS Subpart 270.1 expires on 2029-12-27 per section 872 of the National Defense Authorization Act (NDAA) for Fiscal Year 2024 (Pub. L. 118-31).

Deviation Duration: This deviation remains in effect until rescinded or incorporated into the DFARS and DFARS PGI. No expiration date is specified.

One Follow-On Contract Limit: A contracting officer may award only one sole-source follow-on contract per predecessor contract. The head of the contracting activity may waive this limit, but may not delegate below one level above the contracting officer.

Contractor Performance Rating Requirement: Qualified businesses must have a minimum satisfactory performance rating in the Contractor Performance Assessment Reporting System for the predecessor contract. See FAR 42.1102.

Subcontracting Limit: Qualified businesses must certify they will limit subcontracting to no more than 50 percent of the Government payment for performance. Exceptions apply for subcontracts to other qualified businesses, unavailable materials and head-of-contracting-activity waivers.