FAR and DFARS › DFARS Part 203: Improper Business Practices and Personal Conflicts of Interest › Subpart 203.1

DFARS 203.170 Business practices.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This DFARS section states best-practice policies for separating oversight, source selection, contract negotiation, and contract award functions. It matters to contractors because it shapes how defense agencies organize and review major acquisitions, including legal review before award and independent review above the simplified acquisition threshold.

Applies to: Departments and agencies conducting defense acquisitions

What it requires

  • Senior leaders shall not perform multiple roles in source selection for a major weapon system or major service acquisition.
  • Vacant acquisition positions shall be filled on an 'acting' basis from below until a permanent appointment is made.
  • Acquisition process reviews of the military departments shall be conducted to assess and improve acquisition and management processes, roles, and structures.
  • Source selection processes shall be reviewed and approved by cognizant oversight organizations, documented by the head of the contracting activity or at the agency level, and periodically reviewed by outside officials independent of that office or agency.

Key terms: source selection · major weapon system · major service acquisition · simplified acquisition threshold · procurement management reviews

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

To ensure the separation of functions for oversight, source selection, contract negotiation, and contract award, departments and agencies shall adhere to the following best practice policies:

(a) Senior leaders shall not perform multiple roles in source selection for a major weapon system or major service acquisition.

(b) Vacant acquisition positions shall be filled on an “acting” basis from below until a permanent appointment is made. To provide promising professionals an opportunity to gain experience by temporarily filling higher positions, these oversight duties shall not be accrued at the top.

(c) Acquisition process reviews of the military departments shall be conducted to assess and improve acquisition and management processes, roles, and structures. The scope of the reviews should include—

(1) Distribution of acquisition roles and responsibilities among personnel;

(2) Processes for reporting concerns about unusual or inappropriate actions; and

(3) Application of DoD Instruction 5000.2, Operation of the Defense Acquisition System, and the disciplines in the Defense Acquisition Guidebook.

(d) Source selection processes shall be—

(1) Reviewed and approved by cognizant organizations responsible for oversight;

(2) Documented by the head of the contracting activity or at the agency level; and

(3) Periodically reviewed by outside officials independent of that office or agency.

(e) Legal review of documentation of major acquisition system source selection shall be conducted prior to contract award, including the supporting documentation of the source selection evaluation board, source selection advisory council, and source selection authority.

(f) Procurement management reviews shall determine whether clearance threshold authorities are clear and that independent review is provided for acquisitions exceeding the simplified acquisition threshold.

← 203.104-4 Disclosure, protection, and marking of contractor bid or proposal information and source selection information. · 203.171 Senior DoD officials seeking employment with defense contractors. →

Rule changes for DFARS Part 203

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 203.170 Business practices · SpendQuery