Monday, November 8, 2010

Finding and Interpreting DFARS Clauses for Defense Procurement Contracts

Private sector technology used in major projects worldwide is transforming the way US federal defense procurement specialists and their private sector suppliers access information for contract negotiations.
The US Federal Acquisition Regulation (FAR) spells out over 1800 pages of mandatory policies and procedures for procurement by all federal agencies.
FAR, and each federal agency's FAR Supplement, like the Defense Federal Acquisition Regulation Supplement (DFARS), have been deemed by the courts to have "the force and effect of law," see Davies Precision Machining, Inc. v. U.S., 35 Fed. Cl. 651 (1995).
With over $900 Billion annual defense procurement by US agencies, searching and understanding DFARS Clauses for defense supply contracts is a daily challenge for federal defense procurement specialists and the private sector suppliers who meet the nation's defense supply needs.
FAR and the 1000 page Defense FAR Supplement (DFARS) are divided into subchapters, parts, subparts, sections and subsections.
It is not enough for defense suppliers to simply rely on procurement documentation provided during supply negotiations. DFARS specifies many mandatory clauses for procurement contracts which carry the force of law even if omitted in an individual US defense supply contract.
In fact, a may not only carry the force of law for the prime contract, but also flow down and be incorporated by reference in all subcontractor contracts.
For example, a US Department of Defense (DoD) Final Rule stipulates that a clause mandating strict compliance with US export control laws and regulations must be included in all DoD solicitations and contracts, including any subcontracts flowing down from a DoD prime contract.
Rapid search and understanding of DFARS requirements is also essential when preparing statements of compliance.
For example, the stipulates a 'Preference for Domestic Specialty Metals' which mandates that Defense suppliers provide a Statement of Compliance for specialty metals components including steel, nickel alloys, cobalt alloys, titanium and zirconium. This DFARS clause automatically flows down from buy, to prime supply contract and all subcontracted suppliers.
Information access in this complex supply market is being transformed with the recent application of major projects to improve access and understanding for these critical government regulations.

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