SpendQueryBeta

FAR and DFARS › DFARS Part 232: Contract Financing › Subpart 232.71

DFARS 232.7101 Policy and procedures.

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 tells contracting officers how to handle a situation where a levy against a contractor may stop the contractor from performing the contract. It requires the contractor to notify the contracting officer about the levy and whether it could hurt national security, and it sets up a chain of notifications inside the Government. It matters because a levy can trigger contract performance problems and extra costs, and the contractor has a duty to speak up promptly.

Applies to: Contractors whose contract performance may be affected by a levy, and the contracting officers who administer those contracts

What it requires

  • Promptly notify the contracting officer when a levy may result in an inability to perform the contract
  • Advise the contracting officer whether the inability to perform may adversely affect national security

Key terms: levy · inability to perform · national security · Principal Director, DPCAP · PGI

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

The text

(a) The contracting officer shall require the contractor to—

(1) Promptly notify the contracting officer when a levy may result in an inability to perform the contract; and

(2) Advise the contracting officer whether the inability to perform may adversely affect national security.

(b) The contracting officer shall promptly notify the Principal Director, Defense Pricing, Contracting, and Acquisition Policy (DPCAP), when the contractor's inability to perform will adversely affect national security or will result in significant additional costs to the Government. Follow the procedures at PGI 232.7101(b) for reviewing the contractor's rationale and submitting the required notification.

(c) The Principal Director, DPCAP, will promptly evaluate the contractor's rationale and will notify the IRS, the contracting officer, and the payment office, as appropriate, in accordance with the procedures at PGI 232.7101(c).

(d) The contracting officer shall then notify the contractor in accordance with paragraph (c) of the clause at 252.232-7010 and in accordance with the procedures at PGI 232.7101(d).

Sections it refers to

← 232.7100 Scope of subpart. · 232.7102 Contract clause. →

Rule changes for DFARS Part 232

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

DFARS 232.7101 Policy and procedures · SpendQuery