DFARS 207.171-3 Policy.

In plain English

This section states DoD policy on breaking out components of weapons systems or major end items. It requires breakout when a prime contract is awarded without adequate price competition and the component will also be acquired without adequate price competition, if substantial net cost savings are likely and breakout will not harm quality, reliability, performance, or timely delivery. It also requires consideration of breakout in other situations and sets a threshold below which breakout is normally not justified.

Applies to: DoD contracting officers and prime contractors acquiring components for weapons systems or major end items

What it requires

• Break out a component if the prime contract is awarded without adequate price competition, the component will be acquired without adequate price competition, substantial net cost savings probably will be achieved, and breakout will not jeopardize quality, reliability, performance, or timely delivery
• Consider breakout of a component if substantial net cost savings will result from greater quantity acquisitions or from factors such as improved logistics support and economies in operations and training, even when adequate price competition exists.

Key terms: break out · component · weapons systems · major end items · adequate price competition

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