Authority
Section 2 of Executive Order 14275, Restoring Common Sense to Federal Procurement; Section 4(a) of Executive Order 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; Section 1826(a)(10) of the National Defense Authorization Act for Fiscal Year 2026 (Pub. L. 119-60)
Summary
This deviation revises and supersedes Class Deviation 2026-O0032, issued December 19, 2025. It implements section 1826(a)(10) of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2026, which exempts nontraditional defense contractors from Federal Acquisition Regulation (FAR) Part 31. It also corrects an editing error at Defense FAR Supplement (DFARS) 231.205-22 and revises cross-references, cited statutes and paragraph numbering.
Contracting Officer Actions
1
Use the revised FAR Part 31 from the Revolutionary FAR Overhaul (RFO) web page. It replaces the codified text at 48 CFR chapter 1.
2
Use the attached revised DFARS Part 231 in lieu of the codified text at 48 CFR chapter 2.
3
Use the attached revised DFARS Procedures, Guidance, and Information (PGI) 231 in lieu of the PGI text on the Defense Pricing, Contracting, and Acquisition Policy web page.
4
Do not apply DFARS Part 231 or FAR Part 31 to contracts with nontraditional defense contractors, per section 1826(a)(10) of the NDAA for FY 2026.
5
Use clause 252.231-7000, Supplemental Cost Principles, in all solicitations and contracts subject to FAR subparts 31.2, 31.3, 31.6 and 31.7.
6
For external restructuring costs above $25 million over a five-year period, submit the determination recommendation to the Under Secretary of Defense (Acquisition and Sustainment) or the Principal Deputy. For all other cases, submit to the Director of the Defense Contract Management Agency.
Supersession
This revision supersedes the original Class Deviation 2026-O0032 issued December 19, 2025. Contracting officers must use this revised version immediately.
Expiration
This deviation remains in effect until rescinded or incorporated into the FAR, DFARS and DFARS PGI. No fixed expiration date applies.
Lobbying Cost Correction
The correction at DFARS 231.205-22 clarifies that lobbying and political activity costs are unallowable when associated research, development, testing and evaluation is not complete. This corrects an editing error in the original deviation.
Utilities Privatization
When awarding qualified contracts for utility system conveyance under 10 U.S.C. 2688, see DoD Class Deviation 2011-O0006, Utilities Privatization, dated March 31, 2011.
DTIC Reporting
Major contractors must report independent research and development (IR&D) projects to the Defense Technical Information Center (DTIC) and update inputs at least annually. Contractors that are not major contractors are encouraged, but not required, to use the DTIC online input form.
Inquiries
Address questions about this deviation to osd.pentagon.ousd-a-s.mbx.dfars@mail.mil.