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 848 of the National Defense Authorization Act for Fiscal Year 2026 (Pub. L. 119-60)
Summary
This revision to Class Deviation 2026-O0041 replaces the prior version issued 2026-02-03. It implements section 848 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2026, removes Defense Federal Acquisition Regulation Supplement (DFARS) 225.7021 and associated provisions and clauses, updates trade agreement thresholds and makes minor corrections to DFARS Part 225 and Procedures, Guidance, and Information (PGI) 225. Contracting officers must use the revised Federal Acquisition Regulation (FAR) Part 25 from the Revolutionary FAR Overhaul (RFO) web page, the attached DFARS Part 225 and the attached PGI 225 in lieu of the currently codified or published texts.
Contracting Officer Actions
1
Effective immediately, use the revised FAR Part 25, Foreign Acquisition, from the RFO web page. It replaces the codified text at 48 CFR chapter 1.
2
Use the attached DFARS Part 225, Foreign Acquisition, in lieu of the codified text at 48 CFR chapter 2.
3
Use the attached PGI 225, Foreign Acquisition, in lieu of the PGI text published on the Defense Pricing, Contracting, and Acquisition Policy web page.
4
Do not use 225.7021 or its associated provision at 252.225-7057 and clause at 252.225-7058. These sections are reserved.
5
Apply updated trade agreement thresholds as determined by the United States Trade Representative (USTR). The World Trade Organization Government Procurement Agreement threshold for supplies is $174,000.
6
For contracts awarded on or after 2027-01-01, do not award contracts for covered materials mined, refined, or separated in a covered country, per the restriction at 10 U.S.C. 4872(a) as clarified by section 848 of the FY 2026 NDAA.
7
Insert clause 252.225-7961, Restriction on the Acquisition of Certain Magnets, Tantalum, and Tungsten. Use in solicitations and contracts exceeding the simplified acquisition threshold, unless acquiring items outside the United States for use outside the United States or a nonavailability determination applies.
8
Insert clause 252.225-7963, Antiterrorism/Force Protection Policy for Defense Contractors Outside the United States. Use in solicitations and contracts requiring performance or travel outside the United States, except contracts with foreign governments, their representatives or foreign corporations wholly owned by foreign governments.
9
Insert provision 252.225-7000, Buy American--Balance of Payments Program Certificate, instead of FAR 52.225-2 in solicitations that include the clause at 252.225-7001.
10
Insert clause 252.225-7001, Buy American and Balance of Payments Program, instead of FAR 52.225-1 in solicitations and contracts, including commercial (Part 12) acquisitions, unless an exception at 225.601(2)(i) applies.
11
Insert clause 252.225-7002, Qualifying Country Sources as Subcontractors, in solicitations and contracts that include 252.225-7001, 252.225-7021 or 252.225-7036.
12
Insert clause 252.225-7013, Duty-Free Entry, instead of FAR 52.225-8. Do not use for acquisitions of supplies that will not enter the customs territory of the United States.
13
Insert provision 252.225-7020, Trade Agreements Certificate, instead of FAR 52.225-6, in solicitations that include clause 252.225-7021, except when alternate III of 252.225-7021 applies.
14
Insert clause 252.225-7021, Trade Agreements, instead of FAR 52.225-5, in solicitations and contracts, including commercial (Part 12) acquisitions, when the World Trade Organization Government Procurement Agreement applies and the value equals or exceeds $174,000.
15
Insert provision 252.225-7035, Buy American--Free Trade Agreements--Balance of Payments Program Certificate, instead of FAR 52.225-4, in solicitations that include 252.225-7036.
16
Insert clause 252.225-7036, Buy American--Free Trade Agreements--Balance of Payments Program, instead of FAR 52.225-3, in solicitations and contracts, including commercial (Part 12) acquisitions, for items listed at 225.401-70 when the estimated value is less than $174,000.
17
Insert clause 252.225-7039, Defense Contractors Performing Private Security Functions Outside the United States, instead of FAR 52.225-26, in solicitations and contracts, including commercial (Part 12) acquisitions, when private security functions are to be performed outside the United States.
18
Insert clause 252.225-7040, Contractor Personnel Supporting U.S. Armed Forces Deployed Outside the United States, instead of FAR 52.225-19, in solicitations and contracts, including commercial (Part 12) acquisitions, for performance in a designated operational area supporting U.S. Armed Forces.
19
Direct inquiries to osd.pentagon.ousd-a-s.mbx.dfars@mail.mil.
Revision status
This is Revision 1 of Class Deviation 2026-O0041. It supersedes the original deviation issued 2026-02-03.
Expiration
The deviation remains in effect until rescinded or incorporated into the FAR, DFARS and DFARS PGI. There is no fixed expiration date.
Section 848 clarification
Section 848 of the FY 2026 NDAA amends section 844 of the FY 2021 NDAA. The restriction at 10 U.S.C. 4872(a) on covered materials mined, refined or separated in a covered country applies only to contracts awarded on or after 2027-01-01.
225.7021 removed
DFARS 225.7021 and the associated provision at 252.225-7057 and clause at 252.225-7058 are reserved. Do not use these sections.
Trade agreement thresholds
Thresholds reflect the USTR adjustment. The World Trade Organization Government Procurement Agreement threshold for supplies is $174,000. Free Trade Agreement thresholds vary by agreement; see 225.601(10) for specific dollar ranges.
RFO web page reference
The revised FAR Part 25 is available at https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-25. Do not use the codified text at https://www.ecfr.gov for FAR Part 25.
Affected Provisions and Clauses
252.225-7007 Prohibition on Acquisition of Certain Items from Communist Chinese Military Companies.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.225-7029 Acquisition of Uniform Components for Afghan Military or Afghan National Police.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.225-7037
CLAUSE
Add clause 252.225-7037
MODIFIED
252.225-7038
CLAUSE
Add clause 252.225-7038
MODIFIED
252.225-7043 Antiterrorism/force protection policy for defense contractors outside the United States.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.225-7049 Prohibition on Acquisition of Certain Foreign Commercial Satellite Services—Representations.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.225-7050 Disclosure of Ownership or Control by the Government of a Country that is a State Sponsor of Terrorism.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.225-7051 Prohibition on Acquisition of Certain Foreign Commercial Satellite Services.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.225-7065 Restriction on Acquisition of Fuel for Overseas Contingency Operations.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.225-7961
CLAUSE
Add clause 252.225-7961
MODIFIED
252.225-7963
CLAUSE
Modify clause 252.225-7963
MODIFIED
252.225-7976
CLAUSE
Modify clause 252.225-7976
MODIFIED
252.225-7977
CLAUSE
Modify clause 252.225-7977
MODIFIED
252.225-7980
CLAUSE
Modify clause 252.225-7980
MODIFIED
252.225-7985
CLAUSE
Modify clause 252.225-7985
MODIFIED
252.225-7986
CLAUSE
Modify clause 252.225-7986
MODIFIED
252.225-7987
CLAUSE
Substitute clause 252.225-7987
MODIFIED
252.225-7995
CLAUSE
Modify clause 252.225-7995
MODIFIED