DFARS Part 208: Required Sources of Supplies and Services

In plain English

DFARS Part 208 implements FAR Part 8 for DoD acquisitions, covering required sources of supplies and services. It establishes priorities for mandatory Government sources, procedures for using Federal Supply Schedules, and special programs like coordinated acquisition, precious metals recovery, and enterprise software agreements. Contractors need to understand these rules because they affect where and how DoD buys, including mandatory sources that may limit competition.

Key rules

• DoD must follow specific priorities for using mandatory Government sources, such as inventory items and coordinated acquisition programs. (208.002)
• When placing orders against Federal Supply Schedules, if only one offer is received for an order above the simplified acquisition threshold, the procedures at 215.371 apply. (208.404)
• Orders exceeding the simplified acquisition threshold placed under Federal Supply Schedules must comply with review, approval, and reporting requirements in subpart 217.7. (208.404)
• For information technology acquisitions under Federal Supply Schedules, include an evaluation factor for supply chain risk. (208.405)
• Follow-on orders or blanket purchase agreements exceeding the simplified acquisition threshold that were previously justified on a limiting sources basis must follow the procedures at PGI 208.405-6. (208.405-6)
• For items where Federal Prison Industries (FPI) has a significant market share (greater than 5 percent of the DoD market for the federal supply class), DoD must acquire the item using competitive procedures or as otherwise specified. (208.602-70)
• Under the Coordinated Acquisition Program, contracting responsibility for certain commodities is assigned to a single department, agency, or GSA, and requiring departments must submit requirements to the acquiring department except in specified situations. (208.7000, 208.7003-2)
• DoD policy is for maximum participation in the Precious Metals Recovery Program; components must furnish recovered precious metals from DSCP inventory to production contractors when in the Government's best interest. (208.7302)

Who does what

In practice

• When bidding on DoD contracts, check if the requirement is subject to mandatory sources like FPI or coordinated acquisition, as this may limit competition.
• If you are a schedule contractor, understand that orders above the simplified acquisition threshold may have additional review and approval requirements, and that supply chain risk evaluations apply to IT acquisitions.
• For contracts involving precious metals, be prepared for the Government to furnish recovered precious metals from DSCP inventory, which may affect your material sourcing.
• For commercial software acquisitions, DoD promotes the use of enterprise software agreements under the ESI, so check if your product is covered by an existing agreement.

Common pitfalls

• Assuming that all Federal Supply Schedule orders are exempt from review and approval requirements; orders exceeding the simplified acquisition threshold must comply with subpart 217.7.
• Overlooking the requirement to include a supply chain risk evaluation factor for IT acquisitions under Federal Supply Schedules.
• Failing to follow the special procedures for follow-on orders or BPAs that were previously justified on a limiting sources basis when exceeding the simplified acquisition threshold.
• Not consulting the list of items for which FPI has a significant market share, which may require DoD to acquire from FPI or use competitive procedures.

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.