Government Contracts DoD Issues Final Rule on Single Source Order Limitations
Tuesday, January 15, 2019

DoD Issues Final Rule on Single Source Order Limitations

By Government Contracts Editorial Staff

The Department of Defense has issued a final rule amending the Defense Federal Acquisition Regulation Supplement. The DFARS Case 2018-D060 final rule implements section 816 of the NDAA for Fiscal Year 2019 (PL 115-232), which modified the limitations on awarding single-source task or delivery order contracts exceeding $112 million. This rule adds text to DFARS 216.504 to require agency heads to make the determination required by section 816. In addition, the rule makes editorial changes in DFARS 216.504(c) to add paragraph headings and renumber subparagraphs to align with the FAR. Currently, FAR 16.504(c)(1)(ii)(D)(1)(i) prohibits the award of a task or delivery order contract in an amount exceeding $112 million to a single source unless the head of the agency determines that the orders expected under the contract are so integrally related that only a single source can reasonably perform the work. Section 816 amended this limitation in 10 USC 2304a to require the head of the agency to determine that only a single source can “efficiently perform the work,” instead of “reasonably perform the work” as required by 41 USC 4103. The text of this rule appears at ¶70,016.964. The effective date of the rule is December 21, 2018.

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