Government Contracts Proposed DFARS Rule Addresses Should-Cost Reviews
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Thursday, September 5, 2019

Proposed DFARS Rule Addresses Should-Cost Reviews

By Government Contracts Editorial Staff

A proposed rule would implement a section of the National Defense Authorization Act for Fiscal Year 2018 (PL 115-91) requiring the Department of Defense to amend the Defense Federal Acquisition Regulation Supplement 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.

New Clause. The rule would amend DFARS 215.407-4 to address the six elements. The proposed rule also adds a new contract clause, DFARS 252.215-701X, which would be 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. The prescription for the new clause would be added at DFARS 215.408(8). Comments on the proposed rule referencing DFARS Case 2018-D015 are due October 8, 2019. See ¶70,020.438 for the text of the rule.

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