Change Number: DFARS Change 10/28/2022
Effective Date: 10/28/2022

Defense Federal Acquisition Regulation


234.001 Definition.

As used in this subpart—

“Acceptable earned value management system” and “earned value management system” are defined in the clause at 252.234-7002 , Earned Value Management System.

“Production of major defense acquisition program” means the production and deployment of a major system that is intended to achieve an operational capability that satisfies mission needs, or an activity otherwise defined as Milestone C under Department of Defense Instruction 5000.02 or related authorities.

“Significant deficiency” is defined in the clause at 252.234-7002 , Earned Value Management System, and is synonymous with “noncompliance.”

234.003 Responsibilities.

DoDD 5000.01, The Defense Acquisition System, and DoDI 5000.02, Operation of the Defense Acquisition System, contain the DoD implementation of OMB Circular A-109 and OMB Circular A-11.

234.004 Acquisition strategy.

(1) See 209.570 for policy applicable to acquisition strategies that consider the use of lead system integrators.

(2) Contract type.

(i) In accordance with section 818 of the National Defense Authorization Act for Fiscal Year 2007 (Pub. L. 109-364), for major defense acquisition programs at Milestone B—

(A) The milestone decision authority shall select, with the advice of the contracting officer, the contract type for a development program at the time of Milestone B approval or, in the case of a space program, Key Decision Point B approval;

(B) The basis for the contract type selection shall be documented in the acquisition strategy. The documentation—

(1) Shall include an explanation of the level of program risk; and

(2) If program risk is determined to be high, shall outline the steps taken to reduce program risk and the reasons for proceeding with Milestone B approval despite the high level of program risk; and

(C) If a cost-reimbursement type contract is selected, the contract file shall include the milestone decision authority’s written determination that—

(1) The program is so complex and technically challenging that it would not be practicable to reduce program risk to a level that would permit the use of a fixed-price type contract; and

(2) The complexity and technical challenge of the program is not the result of a failure to meet the requirements of 10 U.S.C. 2366a.

(ii) In accordance with section 811 of the National Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112-239), the contracting officer shall—

(A) Not use cost-reimbursement line items for the acquisition of production of major defense acquisition programs, unless the Under Secretary of Defense for Acquisition and Sustainment (USDA&S)), or the milestone decision authority when the milestone decision authority is the service acquisition executive of the military department that is managing the program, submits to the congressional defense committees—

(1) A written certification that the particular cost-reimbursement line items are needed to provide a required capability in a timely and cost effective manner; and

(2) An explanation of the steps taken to ensure that cost-reimbursement line items are used only to achieve the purposes of the exception; and

(B) Include a copy of such congressional certification in the contract file.

(iii) See 216.301-3 for additional contract type approval requirements for cost-reimbursement contracts.

(iv) For fixed-price incentive (firm target) contracts, contracting officers shall comply with the guidance provided at PGI 216.403-1 (1)(ii)(B) and (C).

(3) The contracting officer shall include in solicitations for contracts for the technical maturation and risk reduction phase, engineering and manufacturing development phase or production phase of a weapon system, including embedded software—

(i) Clearly defined measurable criteria for engineering activities and design specifications for reliability and maintainability provided by the program manager, or the comparable requiring activity official performing program management responsibilities; or

(ii) Ensure a copy of the justification, executed by the program manager or the comparable requiring activity official performing program management responsibilities for the decision that engineering activities and design specifications for reliability and maintainability should not be a requirement, is included in the contract file (10 U.S.C. 2443).

234.005 General requirements.

234.005-1 Competition.

A contract that is initially awarded from the competitive selection of a proposal resulting from a broad agency announcement ( see 235.016) may contain a contract line item or contract option using funds not limited to those identified in 235.016 for the development and demonstration or initial production of technology developed under the contract, or the delivery of initial or additional items if the item or a prototype thereof is created as the result of work performed under the contract , only when it adheres to the following limitations:

(1) The contract line item or contract option shall be limited to the delivery of the minimal amount of initial or additional items or prototypes that will allow for timely competitive solicitation and award of a follow-on development or production contract for those items.

(2) The term of the contract line item or contract option shall be for not more than 2 years.

(3) The dollar value of the work to be performed pursuant to the contract line item or contract option shall not exceed $100 million in fiscal year 2017 constant dollars. (10 U.S.C. 2302e)

234.005-2 Mission-oriented solicitation.

See 215.101-2 -70(b)(2) for the prohibition on the use of the lowest price technically acceptable source selection process for engineering and manufacturing development of a major defense acquisition program for which budgetary authority is requested beginning in fiscal year 2019.


235.001 Definitions.

“Research and development” means those efforts described by the Research, Development, Test, and Evaluation (RDT&E) budget activity definitions found in the DoD Financial Management Regulation (DoD 7000.14-R), Volume 2B, Chapter 5.

235.006 Contracting methods and contract type.

(b)(i) For major defense acquisition programs as defined in 10 U.S.C. 2430—

(A) Follow the procedures at 234.004 ; and

(B) Notify the milestone decision authority of an intent not to exercise a fixed-price production option on a development contract for a major weapon system reasonably in advance of the expiration of the option exercise period.

(ii) For other than major defense acquisition programs—

(A) Do not award a fixed-price type contract for a development program effort unless—

(1) The level of program risk permits realistic pricing;

(2) The use of a fixed-price type contract permits an equitable and sensible allocation of program risk between the Government and the contractor; and

(3) A written determination that the criteria of paragraphs (b)(ii)(A)( 1) and ( 2) of this section have been met is executed—

(i) By the USD(A&S) if the contract is over $25 million and is for: research and development for a non-major system; the development of a major system (as defined in FAR 2.101); or the development of a subsystem of a major system; or

(ii) By the contracting officer for any development not covered by paragraph (b)(ii)(A)( 3)( i) of this section.

(B) Obtain USD(A&S) approval of the Government’s prenegotiation position before negotiations begin, and obtain USD(A&S) approval of the negotiated agreement with the contractor before the agreement is executed, for any action that is—

(1) An increase of more than $250 million in the price or ceiling price of a fixed-price type development contract, or a fixed-price type contract for the lead ship of a class;

(2) A reduction in the amount of work under a fixed-price type development contract or a fixed-price type contract for the lead ship of a class, when the value of the work deleted is $100 million or more; or

(3) A repricing of fixed-price type production options to a development contract, or a contract for the lead ship of a class, that increases the price or ceiling price by more than $250 million for equivalent quantities.

235.006-70 Manufacturing Technology Program.

In accordance with 10 U.S.C. 2521(d), for acquisitions under the Manufacturing Technology Program—

(a) Award all contracts using competitive procedures; and

(b) Include in all solicitations an evaluation factor that addresses the extent to which offerors propose to share in the cost of the project (see FAR 15.304).

235.006-71 Competition.

(a) Use of a broad agency announcement with peer or scientific review for the award of science and technology proposals in accordance with 235.016 (a) fulfills the requirement for full and open competition (see 206.102 (d)(2)).

(b) For a contract that is initially awarded from the competitive selection of a proposal resulting from a broad agency announcement, see 234.005-1 for the use of contract line items or contract options for the development and demonstration or initial production of technology developed under the contract or the delivery of initial or additional items.

235.008 Evaluation for award.

See 209.570 for limitations on the award of contracts to contractors acting as lead system integrators.

235.010 Scientific and technical reports.

(b) For DoD, the Defense Technical Information Center is responsible for collecting all scientific and technical reports. For access to these reports, follow the procedures at PGI 235.010 (b).

235.015 RESERVED

235.015-70 Special use allowances for research facilities acquired by educational institutions.

(a) Definitions. As used in this subsection—

(1) “Research facility” means—

(i) Real property, other than land; and

(ii) Includes structures, alterations, and improvements, acquired for the purpose of conducting scientific research under contracts with departments and agencies of the DoD.

(2) “Special use allowance” means a negotiated direct or indirect allowance—

(i) For construction or acquisition of buildings, structures, and real property, other than land; and

(ii) Where the allowance is computed at an annual rate exceeding the rate which normally would be allowed under FAR Subpart 31.3.

(b) Policy.

(1) Educational institutions are to furnish the facilities necessary to perform defense contracts. FAR 31.3 governs how much the Government will reimburse the institution for the research programs. However, in extraordinary situations, the Government may give special use allowances to an educational institution when the institution is unable to provide the capital for new laboratories or expanded facilities needed for defense contracts.

(2) Decisions to provide a special use allowance must be made on a case-by-case basis, using the criteria in paragraph (c) of this subsection.

(c) Authorization for special use allowance.The head of a contracting activity may approve special use allowances only when all of the following conditions are met—

(1) The research facility is essential to the performance of DoD contracts;

(2) Existing facilities, either Government or nongovernment, cannot meet program requirements practically or effectively;

(3) The proposed agreement for special use allowances is a sound business arrangement;

(4) The Government's furnishing of Government-owned facilities is undesirable or impractical; and

(5) The proposed use of the research facility is to conduct essential Government research which requires the new or expanded facilities.

(d) Application of the special use allowance.

(1) In negotiating a special use allowance—

(i) Compare the needs of DoD and of the institution for the research facility to determine the amount of the special use allowance;

(ii) Consider rental costs for similar space in the area where the research facility is or will be located to establish the annual special use allowance;

(iii) Do not include or allow—

(A) The costs of land; or

(B) Interest charges on capital;

(iv) Do not include maintenance, utilities, or other operational costs;

(v) The period of allowance generally will be—

(A) At least ten years; or

(B) A shorter period if the total amount to be allowed is less than the construction or acquisition cost for the research facility;

(vi) Generally, provide for allocation of the special use allowance equitably among the Government contracts using the research facility;

(vii) Special use allowances apply only in the years in which the Government has contracts in effect with the institution. However, if in any given year there is a reduced level of Government research effort which results in the special use allowance being excessive compared to the Government research funding, a separate special use allowance may be negotiated for that year;

(viii) Special use allowances may be adjusted for the period before construction is complete if the facility is partially occupied and used for Government research during that period.

(2) A special use allowance may be based on either total or partial cost of construction or acquisition of the research facility.

(i) When based on total cost neither the normal use allowance nor depreciation will apply—

(A) During the special use allowance period; and

(B) After the educational institution has recovered the total construction or acquisition cost from the Government or other users.

(ii) When based on partial cost, normal use allowance and depreciation—

(A) Apply to the balance of costs during the special use allowance period to the extent negotiated in the special use allowance agreement; and

(B) Do not apply after the special use allowance period, except for normal use allowance applied to the balance.

(3) During the special use allowance period, the research facility—

(i) Shall be available for Government research use on a priority basis over nongovernment use; and

(ii) Cannot be put to any significant use other than that which justified the special use allowance, unless the head of the contracting activity, who approved the special use allowance, consents.

(4) The Government will pay only an allocable share of the special use allowance when the institution makes any substantial use of the research facility for parties other than the Government during the period when the special use allowance is in effect.

(5) In no event shall the institution be paid more than the acquisition costs.

235.016 Broad agency announcement.

(a) General. A broad agency announcement with peer or scientific review may be used for the award of science and technology proposals. Science and technology proposals include proposals for the following:

(i) Basic research (budget activity 6.1).

(ii) Applied research (budget activity 6.2).

(iii) Advanced technology development (budget activity 6.3).

(iv) Advanced component development and prototypes (budget activity 6.4).

235.017 Federally Funded Research and Development Centers.

(a) Policy.

(2) No DoD fiscal year 1992 or later funds may be obligated or expended to finance activities of a DoD Federally Funded Research and Development Center (FFRDC) if a member of its board of directors or trustees simultaneously serves on the board of directors or trustees of a profit-making company under contract to DoD, unless the FFRDC has a DoD-approved conflict of interest policy for its members (Section 8107 of Pub. L. 102-172 and similar sections in subsequent Defense appropriations acts).

235.017-1 Sponsoring agreements.

(c)(4) DoD-sponsored FFRDCs that function primarily as research laboratories (C3I Laboratory operated by the Institute for Defense Analysis, Lincoln Laboratory operated by Massachusetts Institute of Technology, and Software Engineering Institute operated by Carnegie Mellon) may respond to solicitations and announcements for programs which promote research, development, demonstration, or transfer of technology (Section 217, Pub. L. 103-337).

235.070 Indemnification against unusually hazardous risks.

235.070-1 Indemnification under research and development contracts.

(a) Under 10 U.S.C. 2354, and if authorized by the Secretary concerned, contracts for research and/or development may provide for indemnification of the contractor or subcontractors for—

(1) Claims by third persons (including employees) for death, bodily injury, or loss of or damage to property; and

(2) Loss of or damage to the contractor's property to the extent that the liability, loss, or damage—

(i) Results from a risk that the contract defines as “unusually hazardous;”

(ii) Arises from the direct performance of the contract; and

(iii) Is not compensated by insurance or other means.

(b) Clearly define the specific unusually hazardous risks to be indemnified. Submit this definition for approval with the request for authorization to grant indemnification. Include the approved definition in the contract.

235.070-2 Indemnification under contracts involving both research and development and other work.

These contracts may provide for indemnification under the authority of both 10 U.S.C. 2354 and Pub. L. 85-804. Pub. L. 85-804 will apply only to work to which 10 U.S.C. 2354 does not apply. Actions under Pub. L. 85-804 must also comply with FAR 50.104-3.

235.070-3 Contract clauses.

When the contractor is to be indemnified in accordance with 235.070-1 , use either—

(a) The clause at 252.235-7000 , Indemnification Under 10 U.S.C. 2354—Fixed Price; or

(b) The clause at 252.235-7001 , Indemnification Under 10 U.S.C. 2354—Cost-Reimbursement, as appropriate.

235.071 Export-controlled items.

For requirements regarding access to export-controlled items, see 225.7901 .

235.072 Additional contract clauses.

(a) Use a clause substantially the same as the clause at 252.235-7002 , Animal Welfare, in solicitations and contracts involving research, development, test, and evaluation or training that use live vertebrate animals.

(b) Use the basic or the alternate of the clause at 252.235-7003 , Frequency Authorization, in solicitations and contracts for developing, producing, constructing, testing, or operating a device requiring a frequency authorization.

(1) Use the basic clause if agency procedures do not authorize the use of DD Form 1494, Application for Equipment Frequency Allocation, to obtain radio frequency authorization.

(2) Use the alternate I clause if agency procedures authorize the use of DD Form 1494, Application for Equipment Frequency Allocation, to obtain frequency authorization.

(c) Use the clause at 252.235-7010 , Acknowledgment of Support and Disclaimer, in solicitations and contracts for research and development.

(d) Use the clause at 252.235-7011 , Final Scientific or Technical Report, in solicitations and contracts for research and development.

(e) Use the clause at 252.235-7004 , Protection of Human Subjects, in solicitations and contracts that include or may include research involving human subjects in accordance with 32 CFR Part 219, DoD Directive 3216.02, and 10 U.S.C. 980, including research that meets exemption criteria under 32 CFR 219.101(b). The clause—

(1) Applies to solicitations and contracts awarded by any DoD component, regardless of mission or funding Program Element Code; and

(2) Does not apply to use of cadaver materials alone, which are not directly regulated by 32 CFR Part 219 or DoD Directive 3216.02, and which are governed by other DoD policies and applicable State and local laws.

Subpart 235.70 - Reserved


      Subpart 236.1 - GENERAL

           236.102 Definitions.


           236.203 Government estimate of construction costs.

           236.204 Disclosure of the magnitude of construction projects.

           236.206 Liquidated damages.

           236.213 Special procedures for sealed bidding in construction contracting.

           236.215 Special procedures for cost-reimbursement contracts for construction.

           236.270 Expediting construction contracts.

           236.271 Cost-plus-fixed-fee contracts.

           236.272 Prequalification of sources.

           236.273 Construction in foreign countries.

           236.274 Restriction on acquisition of steel for use in military construction projects.

           236.275 Construction of industrial resources.


           236.303 RESERVED

                236.303-1 Phase One.

      Subpart 236.4 - Reserved

      Subpart 236.5 - CONTRACT CLAUSES

           236.570 Additional provisions and clauses.


           236.601 Policy.

           236.602 Selection of firms for architect-engineer contracts.

                236.602-1 Selection criteria.

                236.602-70 Restriction on award of overseas architect-engineer contracts to foreign firms.

           236.604 Performance evaluation.

           236.606 Negotiations.

                236.606-70 Statutory fee limitation.

           236.609 Contract clauses.

                236.609-70 Additional provision.


           236.701 Standard and optional forms for use in contracting for construction or dismantling, demolition, or removal of improvements.

Subpart 236.4 - Reserved



           237.101 Definitions.

           237.102 Policy.

                237.102-70 Prohibition on contracting for firefighting or security-guard functions.

                237.102-71 Limitation on service contracts for military flight simulators.

                237.102-72 Contracts for management services.

                237.102-73 Prohibition on contracts for services of senior mentors.

                237.102-74 Taxonomy for the acquisition of services, and supplies and equipment.

                237.102-75 Defense Acquisition Guidebook.

                237.102-76 Reserved.

                237.102-77 Acquisition requirements roadmap tool.

                237.102-78 Market research report guide for improving the tradecraft in services acquisition.

                237.102-79 Private sector notification requirements in support of in-sourcing actions.

           237.104 Personal services contracts.

           237.106 Funding and term of service contracts.

           237.109 Services of quasi-military armed forces.

           237.170 Approval of contracts and task orders for services.

                237.170-1 Scope.

                237.170-2 Approval requirements.

           237.171 Training for contractor personnel interacting with detainees.

                237.171-1 Scope.

                237.171-2 Definition.

                237.171-3 Policy.

                237.171-4 Contract clause.

           237.172 Service contracts surveillance.

           237.173 Prohibition on interrogation of detainees by contractor personnel.

                237.173-1 Scope.

                237.173-2 Definitions. As used in this subpart-

                237.173-3 Policy.

                237.173-4 Waiver.

                237.173-5 Contract clause.

           237.174 Disclosure of information to litigation support contractors.

           237.175 Training that uses live vertebrate animals.


           237.270 Acquisition of audit services.


           237.503 Agency-head responsibilities.

      Subpart 237.6 - (REMOVED)

      Subpart 237.70 - MORTUARY SERVICES

           237.7000 Scope.

           237.7001 Method of acquisition.

           237.7002 Area of performance and distribution of contracts.

           237.7003 Solicitation provisions and contract clauses.


           237.7100 Scope.

           237.7101 Solicitation provisions and contract clauses.


           237.7200 Scope.

           237.7201 Educational service agreement.

           237.7202 Limitations.

           237.7203 Duration.

           237.7204 Format and clauses for educational service agreements.


           237.7300 Scope.

           237.7301 Definitions.

           237.7302 General.

           237.7303 Contract clauses.


           237.7400 Scope.

           237.7401 Policy.

           237.7402 Contract clause.


           237.7501 Definition.

           237.7502 Policy.


           237.7600 Scope.

           237.7601 Definitions.

           237.7602 Policy.

           237.7603 Solicitation provision and contract clause.


           237.7700 Scope of subpart.

           237.7701 Definition. As used in this subpart—

           237.7702 Policy.

Subpart 237.6 - (REMOVED)

(June 25, 2004)

Part 238 - RESERVED


      239.001 Applicability.

      Subpart 239.1 - GENERAL

           239.101 Policy.


           239.7001 Policy.


           239.7100 Scope of subpart.

           239.7101 Definition.

           239.7102 Policy and responsibilities.

                239.7102-1 General.

                239.7102-2 Compromising emanations—TEMPEST or other standard.

                239.7102-3 Information assurance contractor training and certification.

           239.7103 Contract clauses.

      Subpart 239.72 - STANDARDS

           239.7201 Solicitation requirements.


           239.7300 Scope of subpart.

           239.7301 Definitions.

           239.7302 Applicability.

           239.7303 Authorized individuals.

           239.7304 Determination and notification.

           239.7305 Exclusion and limitation on disclosure.

           239.7306 Solicitation provision and contract clause.


           239.7400 Scope.

           239.7401 Definitions.

           239.7402 Policy.

           239.7403 Reserved.

           239.7404 Reserved.

           239.7405 Delegated authority for telecommunications resources.

           239.7406 Certified cost or pricing data and data other than certified cost or pricing data.

           239.7407 Type of contract.

           239.7408 Special construction.

                239.7408-1 General.

                239.7408-2 Applicability of construction labor standards for special construction.

           239.7409 Special assembly.

           239.7410 Cancellation and termination.

           239.7411 Contract clauses.

      Subpart 239.75 - Reserved

      Subpart 239.76 - CLOUD COMPUTING

           239.7600 Scope of subpart.

           239.7601 Definitions.

           239.7602 Policy and responsibilities.

                239.7602-1 General.

                239.7602-2 Required storageof data within the United States or outlying areas.

           239.7603 Procedures.

           239.7604 Solicitation provision and contract clause.

239.001 Applicability.

Notwithstanding FAR 39.001, this part applies to acquisitions of information technology, including national security systems.

Subpart 239.75 - Reserved

Part 240 - RESERVED



DFARS Appendix