DFARS Part 209: Contractor Qualifications

In plain English

DFARS Part 209 implements and supplements FAR Part 9 on contractor qualifications for DoD acquisitions. It covers responsibility determinations, preaward surveys, debarment and suspension, organizational conflicts of interest, and special restrictions on certain contractors. Small-business contractors need to understand these rules because they affect eligibility for award and performance obligations.

Key rules

• For cost-reimbursement or incentive contracts, or contracts with progress payments based on costs or completion percentage, the contractor's accounting system and internal controls must provide reasonable assurance of compliance with laws and regulations. (209.104-1)
• The Canadian Commercial Corporation's proposal of a firm as its subcontractor is generally sufficient for an affirmative determination of responsibility, unless inconsistent with other information. (209.104-4)
• Use the provision at 252.209-7002, Disclosure of Ownership or Control by a Foreign Government, in all solicitations when access to proscribed information is necessary for contract performance. (209.104-70)
• DoD funds may not be used to contract with an institution of higher education that hosts a Confucius Institute, unless a waiver is granted by the Office of the Under Secretary of Defense (Research and Engineering). (209.170-2, 209.170-3)
• For aviation or ship critical safety items, contracts for procurement, modification, repair, or overhaul may only be awarded to sources approved by the head of the design control activity. (209.270-3)
• The contracting officer shall not consent to any subcontract with a firm owned or controlled by the government of a state sponsor of terrorism unless the agency head states compelling reasons in writing. (209.405-2)
• Do not award a contract to, extend a contract with, or approve a subcontract to any entity that, within the preceding 15 years, has been convicted under 18 U.S.C. 704 for unlawful manufacture or sale of the Congressional Medal of Honor. (209.471)
• For major defense acquisition programs, agencies must obtain systems architecture and engineering advice from Federally Funded Research and Development Centers or other sources independent of the major defense acquisition program contractor. (209.571-7)

Who does what

In practice

• Before bidding, check if you are subject to any restrictions, such as debarment, suspension, or special exclusions like hosting a Confucius Institute or being owned by a state sponsor of terrorism.
• For cost-reimbursement contracts, ensure your accounting system meets the internal control requirements to avoid being found nonresponsible.
• If you are a subcontractor to the Canadian Commercial Corporation, your responsibility may be presumed, but the contracting officer can still request more information.
• For major defense acquisition programs, be aware of organizational conflict of interest rules that may limit your ability to compete for follow-on work.

Common pitfalls

• Assuming that a determination of responsibility is only about financial resources; it also includes accounting system adequacy for certain contract types.
• Overlooking the restriction on contracting with institutions of higher education that host a Confucius Institute, which can make a proposal ineligible.
• Failing to obtain the required waiver for consulting services conflicts of interest, which must be approved at a very high level.
• Not checking if a subcontractor is owned or controlled by a state sponsor of terrorism, which requires compelling justification and agency head approval.

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.