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FAR and DFARS › DFARS Part 204: Administrative and Information Matters › Subpart 204.76

DFARS 204.7601 Definitions.

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 defines three risk-related terms used in the subpart: item risk, price risk, and supplier risk. It matters to contractors because these definitions frame how the government evaluates products, prices, and suppliers in certain procurements.

Applies to: Contractors and contracting officers in procurements covered by this DFARS subpart

Key terms: Item risk · Price risk · Supplier risk · Supply chain risk

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

The text

As used in this subpart—

Item risk means the probability that a product, based on intended use, will introduce performance risk resulting in safety issues, mission degradation, or monetary loss.

Price risk means the measure of whether a proposed price for a product or service is consistent with historical prices paid for that item or service.

Supplier risk means the probability that an award may subject the procurement to the risk of unsuccessful performance or to supply chain risk (see 239.7301).

Sections it refers to

← 204.7600 Scope of subpart. · 204.7602 Applicability. →

Rule changes for DFARS Part 204

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

DFARS 204.7601 Definitions · SpendQuery