Authority
E.O. 14275, Restoring Common Sense to Federal Procurement; E.O. 14265, Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base; OMB Memorandum M-25-26, Overhauling the Federal Acquisition Regulation; Section 802 of the NDAA for FY 2025 (Pub. L. 118-159); Sections 811(a)(5) and 1826(a)(2) of the NDAA for FY 2026 (Pub. L. 119-60); 10 U.S.C. 3227(b) and (c)
Summary
This deviation revises and supersedes Class Deviation 2026-O0011, issued 2025-12-18. It implements the Revolutionary Federal Acquisition Regulation (FAR) Overhaul for FAR Part 34 and Defense FAR Supplement (DFARS) Part 234, covering major system acquisition. Contracting officers must use revised versions of FAR Part 34, DFARS Part 234 and DFARS Procedures, Guidance, and Information (PGI) 234 in place of the currently codified text.
Contracting Officer Actions
1
Effective immediately, use the revised FAR Part 34 from the RFO web page. It replaces the codified text at 48 CFR chapter 1.
2
Use the attached revised DFARS Part 234 in lieu of the text codified at 48 CFR chapter 2.
3
Use the attached PGI 234 in lieu of the PGI text on the Defense Pricing, Contracting, and Acquisition Policy web page.
4
Do not apply DFARS Subpart 234.2 (Earned Value Management System) to contracts primarily for software or contracts awarded to nontraditional defense contractors.
5
Insert provision 252.234-7998, Notice of Earned Value Management System, in solicitations for cost or incentive contracts valued at $50 million or more. Also insert it for other contracts where earned value management (EVM) will be applied per 234.201-70(a)(3) and (4).
6
Insert clause 252.234-7999, Earned Value Management System, instead of FAR 52.234-4. Use in the same solicitations and contracts as 252.234-7998.
7
Use the basic clause at 252.234-7004, Cost and Software Data Reporting (CSDR), in solicitations and contracts exceeding $50 million that meet the criteria at 234.7101(a)(1).
8
Use Alternate I of clause 252.234-7004 in solicitations and contracts exceeding $20 million but not more than $50 million that meet the criteria at 234.7101(a)(2) or (b).
9
Do not use DFARS Subpart 234.70. It is reserved following repeal of 10 U.S.C. 3455 by Section 811(a)(5) of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2026.
10
For cost-reimbursement development contracts for major systems, do not procure more than one lot for low-rate initial production using fixed-price options unless a waiver is granted.
11
For indefinite-delivery contracts, specify CSDR applicability at the task order or delivery order level.
12
Before issuing a solicitation, obtain written documentation from the program manager that preaward requirements of DoD Manual (DoDM) 5000.04 have been met or include a signed CSDR waiver in the contract file.
Nontraditional Contractor Waiver
The head of the contracting activity (HCA) may waive the exemption for nontraditional defense contractors by written determination. The HCA may delegate this authority no lower than the chief of the contracting office.
CSDR Waiver Authority
Only the Office of the Secretary of Defense, Director of Cost Assessment and Program Evaluation (CAPE) may waive CSDR requirements. See 10 U.S.C. 3227(c) and PGI 234.7103 for contact information.
Low-Rate Initial Production Limit
Section 802 of the NDAA for FY 2025 limits production quantities procured using fixed-price options to not more than one low-rate initial production lot. A service acquisition executive may waive this on a non-delegable basis.
Expiration
This deviation remains in effect until rescinded or incorporated into the FAR, DFARS and DFARS PGI. Direct inquiries to osd.pentagon.ousd-a-s.mbx.dfars@mail.mil.
Revision Note
This is Revision 1 of Class Deviation 2026-O0011. It supersedes the original deviation issued 2025-12-18.
Affected Provisions and Clauses
252.234-7001 Notice of Earned Value Management System.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.234-7002 Earned Value Management System.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.234-7998
CLAUSE
Add clause 252.234-7998
MODIFIED
252.234-7999
CLAUSE
Add clause 252.234-7999
MODIFIED
252.242-7998
CLAUSE
Modify clause 252.242-7998
MODIFIED