Government Contracts DFARS Rule Addresses Should-Cost Reviews
Thursday, December 26, 2019

DFARS Rule Addresses Should-Cost Reviews

By Government Contracts Editorial Staff

A final rule amends the Defense Federal Acquisition Regulation Supplement to implement a section of the National Defense Authorization Act for Fiscal Year 2018 (PL 115-91) requiring the Department of Defense to amend the DFARS to provide for the appropriate use of the should-cost review process for major weapon systems. Section 837 of the FY 2018 NDAA requires a should-cost review process for major weapon systems that is transparent and objective and provides for the efficiency of the DoD systems acquisition process. Under DFARS 234.7001, a “major weapon system” is one that is “acquired pursuant to a major defense acquisition program.” Section 837 requires DoD to address six specific elements of a program should-cost review. The rule amends DFARS 215.407-4 to address these six elements. The rule also adds a new contract clause, DFARS 252.215-7015, prescribed at DFARS 215.408(8), which is used in solicitations and contracts for the development or production of a major weapon system, as defined by DFARS 234.7001, to ensure objectivity and efficiency in the should-cost review. This final rule has a November 27, 2019, effective date. For the text of the rule, see ¶70,017.21.

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