FAR and DFARS › DFARS Part 237: Service Contracting › Subpart 237.74
DFARS 237.7401 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 DFARS section explains the policy for using a specific authority to contract with local governments. It sets timing limits and requires a best-interest determination by the head of the contracting activity. It matters because it restricts when and how such contracts can be awarded.
Applies to: Contracts with local governments under DFARS 237.7401
What it requires
- Do not exercise the authority earlier than 180 days before the scheduled installation closure date.
- Obtain a determination by the head of the contracting activity that the services are in the best interests of the Department of Defense.
Key terms: local governments · 10 U.S.C. Chapter 146 · head of the contracting activity · best interests of the Department of Defense
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
The authority in 206.302-5(b)(ii) to contract with local governments—
(a) May be exercised without regard to the provisions of 10 U.S.C. Chapter 146, Contracting for Performance of Civilian Commercial or Industrial Type Functions;
(b) May not be exercised earlier than 180 days before the date the installation is scheduled to be closed;
(c) Requires a determination by the head of the contracting activity that the services being acquired under contract with the local government are in the best interests of the Department of Defense.
Sections it refers to
- 206.302-5 Authorized or required by statute.
Sections that refer to it
- 206.302-5 Authorized or required by statute.
← 237.7400 Scope. · 237.7402 Contract clause. →
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.