Government Contracts Class Deviation on Use of Fixed-Price Contracts Updated 
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Monday, September 28, 2020

Class Deviation on Use of Fixed-Price Contracts Updated 

By Government Contracts Editorial Staff

Department of Defense Class Deviation 2020-O0022 rescinds and supersedes Class Deviation 2020-O0001, which required contracting officers to first consider the use of fixed-price contracts, including fixed-price incentive contracts, when determining what type of contract to award. This notice requires COs to include the deviation clauses provided in attachments 1 and 2—DFARS 252.225-7993, Prohibition on Providing Funds to the Enemy (DEVIATION 2020-O0022), and DFARS 252.225-7975, Additional Access to Contractor and Subcontractor Records (DEVIATION 2020-O0022)—in solicitations and contracts, including procurements using FAR Part 12 procedures for the acquisition of commercial items, with an estimated value in excess of $50,000 that will be performed outside the United States and its outlying areas in support of a contingency operation in which members of the Armed Forces are actively engaged in hostilities. Heads of contracting activities are instructed to follow the procedures in Attachment 3 when exercising the authorities provided by this class deviation, which may be exercised only on written notification from a combatant commander identifying persons or entities within the combatant commander’s area of responsibility. This class deviation implements section 841 of the National Defense Authorization Act for Fiscal Year 2015 (PL 113-291), as amended by section 822 of the NDAA for FY 2020 (PL 116-92), and section 842 of the NDAA for FY 2015. For the text of the notice, see ¶70,245.130. This class deviation will remain in effect until December 31, 2023, unless otherwise rescinded. 

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