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
Summary
This deviation revises and supersedes Class Deviation 2026-O0037 (original) and Class Deviation 2024-O0002, Revision 1. It requires use of revised Federal Acquisition Regulation (FAR) Part 19 and Defense FAR Supplement (DFARS) Part 219, Small Business, along with revised DFARS Procedures, Guidance, and Information (PGI) 219. Key changes include replacing the Electronic Subcontracting Reporting System with the new Subcontracting Plan Reporting system in SAM.gov, correcting the threshold at DFARS 219.208-2 from $150 million to $100 million and establishing alternate Service-Disabled Veteran-Owned Small Business (SDVOSB) eligibility verification procedures.
Contracting Officer Actions
1
Effective immediately, use the revised FAR Part 19 from the Revolutionary FAR Overhaul (RFO) web page. It replaces the codified text at 48 CFR chapter 1.
2
Effective immediately, use the attached revised DFARS Part 219 and Appendix I. They replace the codified text at 48 CFR chapter 2.
3
Effective immediately, use the attached revised DFARS PGI 219. It replaces the PGI text at the DFARS PGI website.
4
For SDVOSB set-aside or sole-source contracts, verify offeror eligibility in the Small Business Administration (SBA) Small Business Search (SBS) at https://search.certifications.sba.gov/ instead of using FAR 19.106-1(b) procedures.
5
For joint ventures seeking SDVOSB status, confirm the managing SDVOSB partner is designated in SBS as certified by SBA. Use this in lieu of FAR 19.106-1(c)(2) procedures.
6
Apply the corrected sole-source 8(a) threshold of $100 million at DFARS 219.208-2. Do not use the prior $150 million threshold.
7
Submit subcontracting reports in the new Subcontracting Plan Reporting (SPR) system at SAM.gov. Do not use the decommissioned Electronic Subcontracting Reporting System.
8
Insert clause 252.219-7996, Small Business Subcontracting Plan (DoD Contracts), and its alternates using the deviation version dated JUL 2026. Use in solicitations and contracts containing FAR 52.219-9.
9
Insert clause 252.219-7997, Small Business Subcontracting Plan (Test Program). Use the deviation version dated JUL 2026 for contracts with comprehensive subcontracting plans under the Test Program.
10
Insert provision 252.219-7012, Competition for Religious-Related Services, in solicitations for religious-related services on U.S. military installations set aside for small business concerns.
11
Insert provision 252.219-7000, Advancing Small Business Growth, when estimated annual contract value exceeds the applicable North American Industry Classification System (NAICS) size standard in dollars or $70 million if the size standard is expressed in number of employees.
12
Insert clause 252.219-7009, Section 8(a) Direct Award, instead of FAR 52.219-11, FAR 52.219-12 and FAR 52.219-17, in solicitations and contracts processed under the Partnership Agreement (PA).
13
Insert clause 252.219-7010, Notification of Competition Limited to Eligible 8(a) Participants--Partnership Agreement, instead of FAR 52.219-18, in competitive solicitations and contracts processed under the PA using FAR 19.108-7 procedures.
14
Insert clause 252.219-7011, Notification to Delay Performance, in solicitations and purchase orders issued under the PA.
15
Do not apply HUBZone price evaluation preference in tiered evaluations until a tier is reached where other-than-small business offers are being considered.
16
Direct inquiries regarding this deviation to osd.pentagon.ousd-a-s.mbx.dfars@mail.mil.
Supersession
This revision supersedes two prior deviations: Class Deviation 2026-O0037 (issued 2026-01-21) and Class Deviation 2024-O0002, Revision 1, The Service-Disabled Veteran-Owned Small Business Program (issued 2024-03-14).
SPR System
The Electronic Subcontracting Reporting System was decommissioned on 2026-02-20. All subcontracting reporting must now occur in the SPR system at SAM.gov.
SDVOSB Verification
The alternate SDVOSB eligibility verification procedures at DFARS 219.106-70(a) and (b) are temporary. They remain necessary until SAM.gov aligns with FAR procedures.
Test Program Expiration
The DoD Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans expires on 2027-12-31.
8(a) Simulation Prohibition
DoD Class Deviation 2014-O0007 remains in effect. It prohibits use of FAR 19.108 to award prime contracts for military simulation and military simulation training.
Duration
This deviation remains in effect until rescinded or incorporated into the FAR, DFARS and DFARS PGI.
Affected Provisions and Clauses
252.219-7003 Small Business Subcontracting Plan (DoD Contracts).
CLAUSE
Modified by RFO class deviation
MODIFIED
252.219-7004 Small Business Subcontracting Plan (Test Program).
CLAUSE
Modified by RFO class deviation
MODIFIED
252.219-7996
CLAUSE
Substitute clause 252.219-7996
MODIFIED
252.219-7997
CLAUSE
Substitute clause 252.219-7997
MODIFIED
Clause Text Changes
Original (removed)
Deviation (added)
Unchanged
252.219-7000 Advancing Small Business Growth: Paragraph
Original: JUN 2023
Deviation: JUN 2023 (DEVIATION 2026-O0037)
Original (removed)
Deviation (added)
Unchanged
252.219-7009 Section 8(a) Direct Award: Paragraph
Original: OCT 2018
Deviation: OCT 2018 (DEVIATION 2026-O0037)
Original (removed)
Deviation (added)
Unchanged
252.219-7010 Notification of Competition Limited to Eligible 8(a) Participants--Partnership Agreement: Paragraph
Original: OCT 2019
Deviation: OCT 2019 (DEVIATION 2026-O0037)
Original (removed)
Deviation (added)
Unchanged
252.219-7012 Competition for Religious-Related Services: Paragraph
Original: APR 2018
Deviation: APR 2018 (DEVIATION 2026-O0037)