DFARS Part 202: Definitions of Words and Terms

In plain English

DFARS Part 202 provides definitions for terms used throughout the Defense Federal Acquisition Regulation Supplement (DFARS). It ensures consistent interpretation of key terms that affect DoD contractors, such as 'counterfeit electronic part,' 'nontraditional defense contractor,' and 'offset.' Understanding these definitions is crucial for compliance and for determining eligibility for certain programs.

Key rules

• A 'counterfeit electronic part' is an unlawful or unauthorized reproduction, substitution, or alteration that is knowingly mismarked, misidentified, or otherwise misrepresented as an authentic part from the original manufacturer or authorized source. (202.101)
• A 'nontraditional defense contractor' is an entity that has not performed any DoD contract or subcontract subject to full Cost Accounting Standards coverage for at least the 1-year period preceding the solicitation. (202.101)
• An 'offset' is a benefit or obligation agreed to by a contractor and a foreign government as an inducement or condition to purchase supplies or services under a foreign military sale, and can be direct or indirect. (202.101)
• A 'material weakness' in contractor business systems means a deficiency or combination of deficiencies such that there is a reasonable possibility that a material misstatement of information will not be prevented, or detected and corrected, on a timely basis. (202.101)
• The 'contracting officer's representative' is an individual designated and authorized in writing by the contracting officer to perform specific technical or administrative functions. (202.101)
• A 'suspect counterfeit electronic part' is an electronic part for which credible evidence provides reasonable doubt that the part is authentic. (202.101)
• The 'head of the agency' for DoD includes the Secretary of Defense, the Secretaries of the military departments, and, for defense agencies, the directors who have been delegated authority to act as head of the agency for their respective agencies. (202.101)

Who does what

In practice

• When bidding on DoD contracts, check if you qualify as a 'nontraditional defense contractor' to take advantage of certain flexibilities.
• If you supply electronic parts, ensure they are authentic and not counterfeit or suspect counterfeit, as defined in DFARS 202.101.
• If involved in foreign military sales, understand that offsets may be required and their costs may be allowable.

Common pitfalls

• Assuming that a part from a 'contractor-approved supplier' is automatically authentic; the definition of 'contractor-approved supplier' does not guarantee authenticity.
• Misunderstanding the definition of 'nontraditional defense contractor' by thinking it applies to any small business, when it specifically relates to Cost Accounting Standards coverage.
• Overlooking that 'material weakness' in business systems can lead to a reasonable possibility of material misstatement, which may affect contract awards.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.