FAR and DFARS › DFARS Part 237: Service Contracting › Subpart 237.1
DFARS 237.102 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 states a preference for certain commercial services and points to other DFARS sections for the procedures that carry it out. It also bars contracting officers from awarding contracts for functions exempt from private sector performance, in addition to the existing ban on inherently governmental functions. Program officials must get help from contracting officials through the peer review process.
Applies to: DoD contracting officers and program officials
What it requires
- Contracting officers shall not award contracts for functions that are exempt from private sector performance.
- Program officials shall obtain assistance from contracting officials through the Peer Review process at 201.170.
Key terms: commercial facilities-related services · knowledge-based services · medical services · transportation services · inherently governmental functions
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(b)(1) Preference for certain commercial services. See 212.272 for procedures for implementation of the preference for commercial facilities-related services, knowledge-based services (except engineering services), medical services, or transportation services, as required by section 876 of the National Defense Authorization Act for Fiscal Year 2017 (Pub. L. 114-328).
(2) Public-private competitions. See PGI 207.302 for information on the Governmentwide moratorium and restrictions on public-private competitions conducted pursuant to Office of Management and Budget (OMB) Circular A-76.
(c) In addition to the prohibition on award of contracts for the performance of inherently governmental functions, contracting officers shall not award contracts for functions that are exempt from private sector performance. See 207.503(e) for the associated documentation requirement.
(e) Program officials shall obtain assistance from contracting officials through the Peer Review process at 201.170.
← 237.101 Definitions. · 237.102-70 Prohibition on contracting for firefighting or security-guard functions. →
Rule changes for DFARS Part 237
- Defense Federal Acquisition Regulation Supplement: Preventing Conflicts of Interest for Certain Consulting Services (DFARS Case 2024-D007) ↗ · final rule 2025-08-25 · effective 2025-10-24
- Defense Federal Acquisition Regulation Supplement: Inflation Adjustment of Acquisition-Related Thresholds (DFARS Case 2024-D002) ↗ · proposed 2025-01-17 · comments due 2025-03-18
- Defense Federal Acquisition Regulation Supplement; Technical Amendments ↗ · final rule 2024-10-10 · effective 2024-10-10
- Defense Federal Acquisition Regulation Supplement: Preventing Conflicts of Interest for Certain Consulting Services (DFARS Case 2024-D007) ↗ · proposed 2024-09-26 · comments due 2024-11-25
- Defense Federal Acquisition Regulation Supplement: Transfer and Adoption of Military Animals (DFARS Case 2020-D021) ↗ · final rule 2024-02-15 · effective 2024-02-15
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.