Fun with the DFARS Parts 216, 217, & 218

  • If a contractor and contracting officer wish to use a cost-plus-award-fee contract, they must refer to DFARS Part 216.405-2 and PGI 216.405-2. In the wake of allegations of contractors being paid unearned award fees, contractors must be particularly careful to follow this guidance, or risk reduction or denial of their award in accordance with DFARS Part 252.216-7004.
  • Multiyear contracts are best used when there are many long-lead items that would necessarily be included in execution of the contract. However, contracting officers must still ensure that there is an economic benefit in using a multiyear contract instead of an annual procurement approach, and often must provide at least 30 days’ notice to the congressional defense committees before entering into the multiyear contract. DFARS Part 217.170.
  • The DoD provides various exceptions to some stricter regulations in the FAR in certain emergency situations, as well as for purchases which will take place and be used entirely outside the US. DFARS Part 218.170.

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