DFARS Part 207: Acquisition Planning

In plain English

DFARS Part 207 implements acquisition planning requirements for DoD, including when written acquisition plans are required, component breakout policy, and special rules for leases and end items. It matters because it sets thresholds and procedures that affect how DoD buys goods and services, and imposes specific restrictions on contractors and contracting officers.

Key rules

• Written acquisition plans are required for development acquisitions when the total cost of all contracts for the program is estimated at $10 million or more, and for production or services acquisitions when the total cost is $50 million or more for all years or $25 million or more for any fiscal year. (207.103)
• Written plans are not required for a final buy out or one-time buy, but this exception does not apply to multiyear contracts or contracts with options or phases. (207.103)
• Agencies must break out components of weapons systems or major end items when a prime contract is expected to be awarded without adequate price competition and the component would also be acquired without adequate price competition, if substantial net cost savings are probable and breakout will not jeopardize quality, reliability, performance, or timely delivery. (207.171-3)
• Even when there is adequate price competition, agencies must consider component breakout if substantial net cost savings would result from greater quantity acquisitions or from factors such as improved logistics support and economies in operations and training. (207.171-3)
• The contracting officer is prohibited from requiring offers for development or production of major systems that would enable the Government to use technical data to competitively reprocure identical items or components developed exclusively at private expense, unless the contracting officer makes certain determinations. (207.106)
• For leases of equipment for more than 60 days, the requiring activity must prepare and provide the contracting officer with a justification supporting the decision to lease or purchase. (207.401)
• The contracting officer shall not enter into a contract for the lease or charter of any vessel, aircraft, or combat vehicle, or for services that would require the use of such, unless the Secretary of the military department concerned has satisfied statutory requirements, when the contract is a long-term lease or charter or provides for substantial termination liability. (207.470)
• For noncompetitive acquisitions, the acquisition of additional quantities of an end item is limited to not more than 10 percent of the quantity approved in the justification and approval prepared under FAR part 6. (207.7003)

Who does what

In practice

• If you are bidding on a DoD acquisition that meets the thresholds, the agency will have a written acquisition plan that may affect the solicitation's structure and requirements.
• Component breakout policy means that parts of a major system may be purchased directly by the Government and furnished to you as Government-furnished material, which could change your supply chain and pricing.
• For leases of equipment over 60 days, the requiring activity must justify the lease versus purchase decision, which may influence whether the Government leases or buys.
• For noncompetitive acquisitions, additional quantities of end items are limited to 10 percent of the approved quantity, so you should not expect large increases beyond that without a new justification.

Common pitfalls

• Assuming that a final buy out or one-time buy exception applies to a multiyear contract or a contract with options or phases; it does not.
• Overlooking that component breakout may occur even when there is adequate price competition if substantial net cost savings are expected.
• Failing to provide a justification for leasing equipment for more than 60 days, which is required before the contracting officer can proceed.
• For noncompetitive acquisitions, exceeding the 10 percent limit on additional quantities of end items without proper authorization.

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.