Government Contracts DoD Issues Class Deviation on FMS Fixed-Price Contracts
Wednesday, February 12, 2020

DoD Issues Class Deviation on FMS Fixed-Price Contracts

By Government Contracts Editorial Staff

The Department of Defense has issued Class Deviation 2020-O0003, Use of Fixed-Price Contracts for Foreign Military Sales. The deviation states that contracting officers are not required to use firm-fixed-price contracts for foreign military sales in accordance with DFARS 225.7301-1. DFARS 225.7301-1 provides that, unless waived by the CO, firm-fixed-price contracts shall be used for foreign military sales, unless the other party has established a preference for a different contract type or requests that a different contract type be used. The deviation implements section 807 of the National Defense Authorization Act for Fiscal Year 2020 (PL 116-92), which delays the effective date of the regulations that implement section 830 of the FY 2017 NDAA (PL 114-328). This class deviation remains in effect until December 31, 2020, or until otherwise rescinded. For the text of the class deviation, see ¶70,245.109.

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