SpendQueryBeta

FAR and DFARS › DFARS Part 270: Defense Contracting Programs › Subpart 270.1

DFARS 270.103 Limitations.

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 sets limits on a pilot program, including who may apply to participate and the conditions under which contracting officers may award contracts. It matters to contractors because it restricts awards to qualified businesses meeting performance and subcontracting criteria, and generally limits follow-on sole-source awards to one per predecessor contract.

Applies to: Contracting officers and qualified businesses participating in the pilot program

What it requires

  • Only a contracting officer may submit an application to participate in the pilot program
  • Award only one sole-source, follow-on contract per predecessor contract to the incumbent contractor unless waived
  • Award contracts only to qualified businesses with a minimum performance rating of satisfactory for the predecessor contract in CPARS
  • Award contracts only to qualified businesses that have certified they will not pay more than 50 percent of the amount paid by the Government for contract performance to subcontractors that are not qualified businesses, except for subcontracts for materials not available from another qualified busine

Key terms: pilot program · qualified businesses · sole-source, follow-on contract · incumbent contractor · Contractor Performance Assessment Reporting System (CPARS)

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

The text

(a) Participation in the pilot program is subject to approval by the Under Secretary of Defense (Acquisition and Sustainment), Office of the Principal Director, Defense Pricing, Contracting, and Acquisition Policy (Contract Policy). Only a contracting officer may submit an application to participate in the pilot program. See PGI 270.104(a).

(b) Contracting officers shall only award—

(1) One sole-source, follow-on contract per predecessor contract to the incumbent contractor unless waived by the head of the contracting activity, delegable to a level no lower than one level above the contracting officer;

(2) Contracts to qualified businesses that have a minimum performance rating of satisfactory for the predecessor contract in the Contractor Performance Assessment Reporting System (see FAR subpart 42.15); and

(3) Contracts to qualified businesses that have certified they will not pay more than 50 percent of the amount paid by the Government for contract performance to subcontractors that are not qualified businesses, except for subcontracts for materials not available from another qualified business when the contract is for products, unless waived by the head of the contracting activity, delegable to a level no lower than one level above the contracting officer.

Sections it refers to

Sections that refer to it

  • 270.105 Solicitation provisions and contract clause.

← 270.102 Policy. · 270.104 Procedures. →

Rule changes for DFARS Part 270

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

DFARS 270.103 Limitations · SpendQuery