DFARS Part 244: Subcontracting Policies and Procedures

In plain English

DFARS Part 244 implements subcontracting policies and procedures for DoD contracts, covering consent to subcontract, purchasing system reviews, and commercial item determinations. It matters because it sets specific rules for when contractors need consent to subcontract, how their purchasing systems are evaluated, and how they must treat certain items as commercial.

Key rules

• If a contractor has an approved purchasing system, the contracting officer cannot withhold consent to subcontract without written approval from the program manager or comparable official. (244.201-1)
• For information technology acquisitions that are covered systems or items, the contracting officer should consider including a consent to subcontract requirement related to supply chain risk. (244.201-1)
• When subcontractor selection is not based on lowest price, the contractor must adequately justify that the selection offers the greatest value to the Government. (244.202-2)
• The administrative contracting officer must determine the need for a Contractor Purchasing System Review (CPSR) if the contractor's sales to the Government are expected to exceed $50 million in the next 12 months. (244.302)
• The CPSR must also review the adequacy of the contractor's rationale for commercial product or commercial service determinations and its counterfeit electronic part detection and avoidance system. (244.303)
• The contracting officer, in consultation with the purchasing system analyst or auditor, determines the acceptability of the contractor's purchasing system and pursues correction of any deficiencies. (244.305-70)
• The clause at 252.244-7001, Contractor Purchasing System Administration, must be used in solicitations and contracts that contain the clause at FAR 52.244-2, Subcontracts. (244.305-71)
• Contractors must determine whether a subcontract item meets the definition of a commercial product or commercial service, exercising reasonable business judgment consistent with FAR part 10 market research guidelines. (244.402)

Who does what

In practice

• If you have an approved purchasing system, the Government cannot withhold consent to subcontract without high-level approval, which can speed up your subcontracting process.
• Be prepared to justify subcontractor selections that are not based on lowest price by showing they offer the greatest value to the Government.
• If your Government sales are expected to exceed $50 million in the next 12 months, you will likely undergo a Contractor Purchasing System Review (CPSR).
• When buying items for multiple contracts, remember that items under $10,000 each that are not identifiable to a specific contract are treated as commercial products, simplifying their acquisition.

Common pitfalls

• Assuming that consent to subcontract can be withheld simply because you have an approved purchasing system; the regulation requires written approval from the program manager.
• Failing to adequately document the rationale for selecting a subcontractor when the selection is not based on lowest price; this can lead to challenges during a CPSR.
• Overlooking the requirement to review counterfeit electronic part detection and avoidance systems during a CPSR; this is a specific area of review.
• Incorrectly treating items as commercial products without considering the $10,000 threshold and multiple contract use criteria; only items meeting those conditions are automatically treated as commercial.

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.