This text is not in eCFR or DITA. It is extracted from the .docx attachment for Class Deviation 2026-O0020, which directs contracting officers to use it in place of the codified PGI. The parsed text is a convenience layer; the .docx attachment is authoritative.
DoD policy is to break out components of weapon systems or other major end items under certain circumstances.
(a) When it is anticipated that a prime contract will be awarded without adequate price competition, and the prime contractor is expected to acquire any component without adequate price competition, the agency must break out that component if—
(1) Substantial net cost savings probably will be achieved; and
(2) Breakout action will not jeopardize the quality, reliability, performance, or timely delivery of the end item.
(b) Even when either or both the prime contract and the component will be acquired with adequate price competition, the agency must consider breakout of the component if substantial net cost savings will result from—
(1) Greater quantity acquisitions; or
(2) Such factors as improved logistics support (through reduction in varieties of spare parts) and economies in operations and training (through standardization of design).
(c) Breakout normally is not justified for a component that is not expected to exceed $1 million for the current year's requirement.
Authoritative source
Issued as an attachment to the Office of the Secretary of Defense memorandum for Class Deviation 2026-O0020, signed September 2, 2026. Verify against the attachment before relying on this text.
- .docx attachment for Class Deviation 2026-O0020
- Class Deviation 2026-O0020 memorandum (PDF)
- Class Deviation 2026-O0020 on part52.dev
Codified PGI
No codified counterpart is tracked for PGI 207.171. This section exists only in the Class Deviation.