Authority
Executive Order 14275, Restoring Common Sense to Federal Procurement; 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
Summary
The deviation replaces Federal Acquisition Regulation (FAR) Part 42 and Defense FAR Supplement (DFARS) Part 242, both covering contract administration and audit services. Contracting officers must use revised versions of FAR Part 42, DFARS Part 242 and DFARS Procedures, Guidance, and Information (PGI) 242 in lieu of codified text. The deviation implements Executive Order 14275 and Executive Order 14265, which direct removal of unnecessary procurement regulations.
Contracting Officer Actions
1
Effective 2026-03-16, use the revised FAR Part 42 from the Revolutionary FAR Overhaul (RFO) web page. It replaces the codified text at 48 CFR chapter 1.
2
Effective 2026-03-16, use the attached DFARS Part 242 from this deviation. It replaces the codified text at 48 CFR chapter 2.
3
Effective 2026-03-16, use the attached DFARS PGI 242 from this deviation. It replaces the PGI text on the Defense Pricing, Contracting, and Acquisition Policy web page.
4
Use clause 252.242-7997, Material Management and Accounting System (Deviation 2026-O0050), as prescribed at DFARS 242.7204. Insert in solicitations and contracts exceeding the simplified acquisition threshold that are not for commercial products or commercial services, are not awarded to small businesses, educational institutions or nonprofit organizations and are cost-reimbursement or fixed-price with progress payments based on costs incurred.
5
Use clause 252.242-7998, Contractor Business Systems (Deviation 2026-O0050), as prescribed at DFARS 242.7001. Insert in solicitations and contracts that will be covered contracts under the Cost Accounting Standards and include any of the listed business system clauses. Do not use in contracts with educational institutions, Federally Funded Research and Development Centers (FFRDCs) or University Associated Research Centers (UARCs) operated by educational institutions.
6
Use clause 252.242-7999, Accounting System Administration (Deviation 2026-O0050), as prescribed at DFARS 242.7503. Insert in solicitations and contracts for cost-reimbursement, incentive type, time-and-materials or labor-hour contracts, or contracts with progress payments based on costs incurred or on a percentage or stage of completion.
7
Direct inquiries regarding this deviation to osd.pentagon.ousd-a-s.mbx.dfars@mail.mil.
Duration
The deviation remains in effect until rescinded or incorporated into the FAR, DFARS and DFARS PGI. No expiration date applies.
Implementing Authority
The deviation implements three directives: EO 14275, EO 14265 section 4(a) and OMB Memorandum M-25-26 dated 2025-05-02.
Reserved Clauses
DFARS 252.242-7000 through 252.242-7003 are reserved under this deviation.
Affected Provisions and Clauses
252.219-7997
CLAUSE
Modify clause 252.219-7997
MODIFIED
252.234-7999
CLAUSE
Modify clause 252.234-7999
MODIFIED
252.242-7000
CLAUSE
Modify clause 252.242-7000
MODIFIED
252.242-7001
CLAUSE
Modify clause 252.242-7001
MODIFIED
252.242-7002
CLAUSE
Modify clause 252.242-7002
MODIFIED
252.242-7003
CLAUSE
Modify clause 252.242-7003
MODIFIED
252.242-7004 Material Management and Accounting System.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.242-7005 Contractor business systems.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.242-7006 Accounting System Administration.
CLAUSE
Modified by RFO class deviation
MODIFIED
252.242-7997
CLAUSE
Add clause 252.242-7997
MODIFIED
252.242-7998
CLAUSE
Add clause 252.242-7998
MODIFIED
252.242-7999
CLAUSE
Add clause 252.242-7999
MODIFIED
252.244-7998
CLAUSE
Modify clause 252.244-7998
MODIFIED