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FAR and DFARS › DFARS Part 217: Special Contracting Methods › Subpart 217.75

DFARS 217.7505 Limitations on price increases.

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 limits sole-source awards for centrally managed replenishment parts when the price has risen 25 percent or more over the most recent 12-month period. It also lets the contracting officer award anyway if a written certification of fair and reasonable pricing or national security need is made before award. It matters because it restricts when a contractor can receive a sole-source award after a significant price increase.

Applies to: Contracting officers awarding sole-source contracts for centrally managed replenishment parts

What it requires

  • Do not award, on a sole source basis, a contract for any centrally managed replenishment part when the price of the part has increased by 25 percent or more over the most recent 12-month period
  • Before computing the percentage difference between the current price and the prior price, adjust for quantity, escalation, and other factors necessary to achieve comparability
  • If awarding despite the limitation, certify in writing to the head of the contracting activity before award that the price increase is fair and reasonable or that national security interests require purchase
  • Obtain a fair and reasonable price even if the price has not exceeded the limitation

Key terms: centrally managed replenishment part · sole source basis · simplified acquisition threshold · head of the contracting activity · fair and reasonable price

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

The text

This section provides implementing guidance for section 1215 of Public Law 98-94 (10 U.S.C. 2452 note).

(a) The contracting officer shall not award, on a sole source basis, a contract for any centrally managed replenishment part when the price of the part has increased by 25 percent or more over the most recent 12-month period.

(1) Before computing the percentage difference between the current price and the prior price, adjust for quantity, escalation, and other factors necessary to achieve comparability.

(2) Departments and agencies may specify an alternate percentage or percentages for contracts at or below the simplified acquisition threshold.

(b) The contracting officer may award a contract for a part, the price of which exceeds the limitation in paragraph (a) of this section, if the contracting officer certifies in writing to the head of the contracting activity before award that—

(1) The contracting officer has evaluated the price of the part and concluded that the price increase is fair and reasonable; or

(2) The national security interests of the United States require purchase of the part despite the price increase.

(c) The fact that a particular price has not exceeded the limitation in paragraph (a) of this section does not relieve the contracting officer of the responsibility for obtaining a fair and reasonable price.

(d) Contracting officers may include a provision in sole source solicitations requiring that the offeror supply with its proposal, price and quantity data on any government orders for the replenishment part issued within the most recent 12 months.

Sections that refer to it

← 217.7504 Acquisition of parts when data is not available. · 217.7506 Spare parts breakout program. →

Rule changes for DFARS Part 217

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 217.7505 Limitations on price increases · SpendQuery