DFARS (Defense Federal Acquisition Regulation Supplement)
DFARS (Defense Federal Acquisition Regulation Supplement)
What is DFARS?
The Defense Federal Acquisition Regulation Supplement (DFARS) is a set of additional rules that build on the Federal Acquisition Regulation (FAR) for Department of Defense (DoD) contracts. It serves as the DoD’s unique extension of federal procurement policy, addressing the specialized needs of national defense, cybersecurity, supply chain security, and international sourcing.
When contractors ask, “What is DFARS?”, the answer is that it is not a standalone regulation but rather a supplement to FAR. Together, FAR and DFARS set the framework for nearly every defense contract, ensuring fairness, consistency, and protection of national interests. For any business seeking to work with the DoD, DFARS compliance is not optional—it is mandatory.
DFARS vs. FAR
FAR is the government-wide baseline for procurement, while DFARS applies exclusively to the Department of Defense. FAR covers uniform contracting policies across all federal agencies, while DFARS layers on stricter requirements that reflect the sensitivity of defense contracts.
Examples of key differences include:
Cybersecurity rules that mandate the protection of Controlled Unclassified Information (CUI).
Restrictions on sourcing from specific countries due to security or geopolitical risks.
Additional reporting and audit requirements for contractors.
In short, FAR establishes the foundation, and DFARS specifies the defense-related standards. Contractors pursuing DoD work must understand both and be able to distinguish where DFARS adds obligations on top of FAR.
Key DFARS Clauses to Know
Several DFARS clauses are particularly important for contractors because they directly affect eligibility, compliance, and contract execution.
DFARS 252-204-7012 – Requires contractors to implement security measures from NIST SP 800-171 to protect Controlled Unclassified Information. It also requires reporting cyber incidents to the DoD.
DFARS 252-204-7020 – Establishes rules for contractor cybersecurity assessments and mandates access for the DoD to verify compliance.
DFARS 7012 – A commonly used shorthand for the 7012 cybersecurity clause, which is one of the most cited DFARS requirements in defense contracting.
Failure to comply with these clauses can lead to penalties, contract loss, or ineligibility for future awards.
DFARS Countries and Sourcing Rules
Another critical component of DFARS is its sourcing restrictions. The DFARS countries list determines which nations contractors may or may not source materials, products, or services from. These restrictions exist to prevent security risks and ensure that defense-related goods come only from trusted trade partners.
For example, DFARS clauses may prohibit sourcing from certain countries due to concerns about supply chain integrity, cybersecurity threats, or compliance with international agreements. Contractors must verify sourcing carefully to remain DFARS compliant.
DFARS Compliance Requirements
Being DFARS compliant means fully adhering to the supplement’s requirements. This involves more than just acknowledging clauses—it requires active implementation of policies, procedures, and systems that satisfy DoD standards. Key elements of compliance include:
Implementing cybersecurity safeguards and following NIST SP 800-171.
Submitting and maintaining a System Security Plan (SSP) and Plan of Action & Milestones (POA&M).
Reporting cyber incidents within the required timeframes.
Ensuring supply chain partners also meet DFARS requirements.
Preparing for audits or assessments conducted by the DoD or third parties.
Contractors that fail to achieve or maintain DFARS compliance risk disqualification from DoD contracts, termination of existing contracts, and reputational harm in the GovCon market.
Why DFARS Matters in GovCon
For government contractors, DFARS is not just a set of rules but a strategic requirement. It matters because:
It ensures national security by safeguarding sensitive defense information.
It adds transparency and accountability to defense procurement.
It enforces consistent cybersecurity standards across the defense industrial base.
It restricts sourcing to trusted DFARS countries, protecting the supply chain.
It reinforces trust between contractors and the Department of Defense.
GovDash GovCon Glossary Takeaway
The Defense Federal Acquisition Regulation Supplement (DFARS) is one of the most critical frameworks in federal contracting. It builds on FAR with defense-specific requirements, especially around cybersecurity and supply chain security. Understanding DFARS vs FAR, knowing key clauses like 252-204-7012 and 7020, and maintaining DFARS compliance are essential steps for contractors who want to win and retain DoD contracts.