Government Contracts DoD Issues Two DFARS Class Deviations
Thursday, October 3, 2019

DoD Issues Two DFARS Class Deviations

By Government Contracts Editorial Staff

The Department of Defense has issued two class deviations. Both deviations went into effect August 20, 2019. The Principal Director of Defense Pricing and Contracting issues class deviations when necessary to allow organizations to deviate from the Federal Acquisition Regulation and the DoD FAR Supplement.

Peer Reviews. Class Deviation 2019-O0010, Peer Reviews of Contracts for Supplies and Services (¶70,245.104), announces that DPC will no longer conduct DFARS 201.107(a)(1)(i) peer reviews for competitive procurements above $1 billion, except for procurements of major defense acquisition programs above $1 billion for which the Under Secretary of Defense for Acquisition and Sustainment is the milestone decision authority and for USDAS special interest programs. DPC may conduct peer reviews upon request by a military department, defense agency, or DoD field activity. Also, DPC will no longer conduct DFARS 201.107(a)(1)(iii) peer reviews for services acquisitions with an estimated value exceeding $1 billion. DoD independent management reviews of services contracts under section 808 of the National Defense Authorization Act for Fiscal Year 2009 (PL 110-181) are still required, so military departments, defense agencies, and DoD field activities must establish procedures for these types of reviews. Required peer reviews are no longer needed for additional phases of ongoing competitive procurements unless they are Acquisition Category 1D programs or the reviews have been requested by the cognizant contracting officer.

Performance-Based Payments. Class Deviation 2019-O0011, Performance-Based Payments (¶70,245.105), addresses the issuance of a solicitation that may result in a contract providing for PBPs and the award of a contract where the government provides PBPs. For these types of solicitations and contracts, COs must deviate from the policy in DFARS 232.1001(a) and the clause prescription at DFARS 232.1005-70, and use deviation clauses DFARS 252.232-7012, Performance-Based Payments—Whole-Contract Basis, and DFARS 252.232-7013, Performance-Based Payments—Deliverable-Item Basis. COs must use one of these deviation clauses with appropriate fill-ins in solicitations and contracts that include the FAR 52.232-32 PBP clause.

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