FAR and DFARS › DFARS Part 207: Acquisition Planning › Subpart 207.5
DFARS 207.503 Policy.
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 section sets rules for when DoD can contract out work, especially acquisition functions that are closely tied to inherently governmental work. Before such a contract, a written determination must be prepared using DoD Instruction 1100.22 and must confirm the functions are not exempt from private sector performance. For acquisition functions, the contracting officer must find that military or civilian personnel are not reasonably available, will oversee the contractor, and will perform all inherently governmental functions, and must address any organizational conflict of interest.
Applies to: DoD contracting officers and agencies entering into contracts for acquisition functions closely associated with inherently governmental functions
What it requires
- Prepare the written determination using DoD Instruction 1100.22
- Include a determination that none of the functions are exempt from private sector performance
- Determine that appropriate military or civilian DoD personnel cannot reasonably be made available, will oversee contractor performance, and will perform all inherently governmental functions
- Ensure the agency addresses any potential organizational conflict of interest of the contractor
Key terms: inherently governmental functions · acquisition functions · organizational conflict of interest · DoD Instruction 1100.22 · written determination
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(e) The written determination required by FAR 7.503(e), that none of the functions to be performed by contract are inherently governmental—
(i) Shall be prepared using DoD Instruction 1100.22, Guidance for Determining Workforce Mix; and
(ii) Shall include a determination that none of the functions to be performed are exempt from private sector performance, as addressed in DoD Instruction 1100.22.
(S-70) Contracts for acquisition functions.
(1) In accordance with 10 U.S.C. 4508, the head of an agency may enter into a contract for performance of the acquisition functions closely associated with inherently governmental functions that are listed at FAR 7.503(d) only if—
(i) The contracting officer determines that appropriate military or civilian DoD personnel—
(A) Cannot reasonably be made available to perform the functions;
(B) Will oversee contractor performance of the contract; and
(C) Will perform all inherently governmental functions associated with the functions to be performed under the contract; and
(ii) The contracting officer ensures that the agency addresses any potential organizational conflict of interest of the contractor in the performance of the functions under the contract (see FAR Subpart 9.5).
(2) See related information at PGI 207.503(S-70).
← 207.500 Scope of subpart. · 207.7001 Definition. →
Rule changes for DFARS Part 207
- Defense Federal Acquisition Regulation Supplement: Use of Fixed-Price Contracts for Certain Major Defense Acquisition Programs (DFARS Case 2023-D009) ↗ · final rule 2024-04-25 · effective 2024-04-25
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.