Government Contracts Editorial Staff
The Department of Defense has issued a class deviation. Class Deviation 2018-O0017 requires contracting officers, when determining contract type for foreign military sales contracts, to comply with the policy in section 830 of the National Defense Authorization Agreement for Fiscal Year 2017 (PL 114-328), PGI 216.403-1(1)(ii)(B), and a June 28, 2018, Director, Defense Pricing/Defense Procurement and Acquisition Policy memorandum, Negotiations of Sole Source Major Systems for U.S. and U.S./FMS Combined Procurements. The deviation outlines the requirements of section 830, which provides requirements, exceptions, and waiver authority for the use of firm-fixed-price FMS contracts. PGI 216.403-1(1)(ii)(B) and the DPAP memorandum provide additional guidance for determining whether a contract type other than firm-fixed-price is in the best interest of the government and the taxpayer. The effective date of the class deviation is June 28, 2018.
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