Defense Regulations
Richard Vinton
Raytheon Company
Defense Regulations
What are we going to cover?
• US DoD Regulations
Federal Acquisition Regulations (FARs)
Defense Federal Acquisition Regulations
Supplement (DFARS)
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• GIDEP
• Other Industry Issues
RMC Auditor Workshop
June 21-22, 2007
FARs
1.101 Purpose.
The Federal Acquisition Regulations System is established
for the codification and publication of uniform policies and
procedures for acquisition by all executive agencies. The Federal
Acquisition Regulations System consists of the Federal
Acquisition Regulation (FAR), which is the primary document,
and agency acquisition regulations that implement or
supplement the FAR. The FAR System does not include internal
agency guidance ……..
RMC Auditor Workshop
June 21-22, 2007
FARs
1.103 Authority.
(a) The development of the FAR System is in accordance
with the requirements of the Office of Federal Procurement
Policy Act of 1974 (Pub. L. 93-400), as amended by
Pub. L. 96-83.
(b) The FAR is prepared, issued, and maintained, and the
FAR System is prescribed jointly by the Secretary of Defense,
the Administrator of General Services, and the Administrator,
National Aeronautics and Space Administration, under their
several statutory authorities.
RMC Auditor Workshop
June 21-22, 2007
FARs
1.104 Applicability.
The FAR applies to all acquisitions as defined in Part 2 of
the FAR, except where expressly excluded.
Basically used for all US Government procurements
 URL
(http://www.arnet.gov/far/)
• Volume I contains Parts 1-51 (1130 pages)

General Structure & Subparts
• Volume II Contains Parts 52, 53 & index (773
pages)

Solicitation Provisions
RMC Auditor Workshop
June 21-22, 2007
RMC Auditor Workshop
June 21-22, 2007
FAR vs AS9100
FAR
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AS9100
4.7 Contractors Records
Retention
Part 9 – Contractor
Qualifications
9.405-2 Restrictions on
subcontracting.
Part 42 – Contract Admin &
Audit Services
Part 45 – Government Property
46.2-3 Contract Quality
Requirements/Clauses
46.5-6 Acceptance
Part 52 – Solicitation Provisions
and Contract Clauses
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4.2.4 Control of Records
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7.4 Purchasing
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7.4.1 Purchasing Process
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7.4.2 Purchasing Information
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7.5.4 Customer Property
7.2 Customer Related Processes
8.2 Monitoring and Measuring
7.4 Purchasing
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RMC Auditor Workshop
June 21-22, 2007
FAR vs AS9100 and Expectations
AS9100
FAR
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4.7 Contractors Records
Retention
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This subpart provides policies and procedures
for retention of records by contractors to meet
the records review requirements of the
Government….. contractors shall make
available records, which includes books,
documents, ….
(1) 3 years after final payment or, for certain
records;
(2) The period specified in 4.705 through
4.705-3, whichever of these periods
expires first.
4.2.4 Control of Records
A documented procedure shall be established
to define the controls needed for the
identification, storage, protection, retrieval,
retention time and disposition of records
Records shall be available for review by
customers and regulatory authorities in
accordance with contract or regulatory
requirements.
When auditing records, verify the clients knowledge of
FAR requirements for access & retention of records
RMC Auditor Workshop
June 21-22, 2007
FAR vs AS9100 and Expectations
FAR

AS9100
Part 9 – Contractor
Qualifications
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This subpart prescribes policies, standards, and
procedures or determining whether
prospective contractors and subcontractors
are responsible. (see 9.104 for criteria)
7.4 Purchasing
The organization shall evaluate and select
suppliers based on their ability to supply
product in accordance with the organization’s
requirements. Criteria for selection,
evaluation and re-evaluation shall be
established.
Viable criteria is established to validate a supplier’s
capability/probability to fulfill contractual requirements
RMC Auditor Workshop
June 21-22, 2007
FAR vs AS9100 and Expectations
AS9100
FAR
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9.405-2 Restrictions on
subcontracting
..Protecting the Government’s Interests
When Subcontracting with Contractors
Debarred, Suspended or Proposed
for Debarment, contractors shall not enter
into any subcontract in excess of $25,000
with a contractor that has been debarred,
suspended, or proposed for debarment
unless there is a compelling reason to do
so. If a contractor intends..
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7.4.1 Purchasing Process
The organization shall evaluate and select
suppliers based on their ability to supply
product in accordance with the organization’s
requirements. Criteria for selection, evaluation
and re-evaluation shall be established
Ensure that the source selection process includes review of the
“Excluded Parties List”
RMC Auditor Workshop
June 21-22, 2007
FAR vs AS9100 and Expectations
FAR

AS9100
Part 42 – Contract Admin &
Audit Services
This part prescribes policies and procedures
for assigning and performing contract
administration and contract audit services….
(including surveillance activities)
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7.4.2 Purchasing Information
i) right of access by the organization, their
customer, and regulatory authorities
to all facilities involved in the order and to
all applicable records,
Procedures allow “right of access”, review any audit
surveillance reports, discuss activities with resident customer reps.
RMC Auditor Workshop
June 21-22, 2007
FAR vs AS9100 and Expectations
AS9100
FAR
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Part 45 – Government Property
This part prescribes policies and
procedures for providing Government
property to contractors, contractors’ use
And management of Government
property, and reporting, redistributing,
and disposing of contractor inventory….
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7.5.4 Customer Property
The organization shall exercise care with
customer property while it is under the
organization’s control or being used by the
organization. The organization shall identify,
verify, protect and safeguard customer
property provided for use or incorporation into
the product. If any customer property is lost,
damaged or otherwise found to be unsuitable
for use, this shall be reported to the customer
When Government Property is involved there additional FAR/DFAR
requirements beyond those cited in AS9100, the Government conducts
periodic surveys of the contractor’s property system, check for current reports
and/or issues raised.
RMC Auditor Workshop
June 21-22, 2007
FAR vs AS9100 and Expectations
FAR
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AS9100
46.2-3 Contract Quality
Requirements/Clauses
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This part prescribes policies and procedures to
ensure that supplies and services acquired
under Government contract conform to the
contract’s quality and quantity requirements.
Included are inspection, acceptance, warranty,
and other measures associated with quality \
requirements.
7.2 Customer Related Processes
Determination of Requirements Related to the
Product: The organization shall determine
a) requirements specified by the customer,
including the requirements for delivery and
post-delivery activities,
b) requirements not stated by the customer but
necessary for specified or intended use, where
known,
c) statutory and regulatory requirements
related to the product, and
d) any additional requirements determined by
the organization.
In addition to verify procedures exist, pull actual requirements
from a contract and validate compliance
RMC Auditor Workshop
June 21-22, 2007
FAR vs AS9100 and Expectations
FAR
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AS9100
46.5-6 Acceptance
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Acceptance constitutes acknowledgment
that the supplies or services conform
With applicable contract quality and
quantity requirements, except as provided
in this subpart and subject to other terms
and conditions of the contract.
8.2 Monitoring and Measuring
Product release and service delivery shall not
proceed until all the planned arrangements (see
7.1) have been satisfactorily completed,
unless otherwise approved by a relevant
authority and, where applicable, by the
customer.
Verify acceptance criteria satisfies contractual requirements, if
not, differences are covered by waiver/contract mod
RMC Auditor Workshop
June 21-22, 2007
FAR vs AS9100 and Expectations
FAR
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AS9100
Part 52 – Solicitation Provisions
and Contract Clauses
Gives instructions for using Part 52, including
the explanation and use of provision and
clause numbers, prescriptions, prefaces, and
the matrix; (b) Prescribes procedures for
incorporating, identifying, and modifying
provisions and clauses in solicitations and
contracts, and for using alternates; and
(c) Describes the derivation of FAR provisions
and clauses
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7.4.2 Purchasing Information
Purchasing information shall describe the
product to be purchased, including where
Appropriate (sub paragraphs a-j)
The organization shall ensure the adequacy of
specified purchase requirements prior to
their communication to the supplier.
FAR part 52 is typically contained within a contractors Terms
& Conditions – T&Cs should be reviewed periodically to
ensure they’re current, also query the organization as to why
they flow them to their supply base
RMC Auditor Workshop
June 21-22, 2007
DFARS
DoD implementation and supplementation of the FAR is
issued in the Defense Federal Acquisition Regulation
Supplement (DFARS) under authorization and subject to the
authority, direction, and control of the Secretary of Defense.
The DFARS contains—
(i) Requirements of law;
(ii) DoD-wide policies;
(iii) Delegations of FAR authorities;
(iv) Deviations from FAR requirements; and
(v) Policies/procedures that have a significant effect beyond
the internal operating procedures of DoD or a significant cost
or administrative impact on contractors or offerors.
http://www.acq.osd.mil/dpap/dars/dfars/
RMC Auditor Workshop
June 21-22, 2007
RMC Auditor Workshop
June 21-22, 2007
DFARS - Supplements to FAR
211.204 Solicitation provisions and contract
clauses.
(c) When contract performance requires use of
specifications, standards, and data item descriptions
that are not listed in the Acquisition Streamlining and
Standardization Information System database, use
provisions, as appropriate, substantially the same as
those at—
(i) 252.211-7001, Availability of Specifications,
Standards, and Data Item Descriptions Not Listed in
the Acquisition Streamlining and Standardization
Information System (ASSIST), and Plans, Drawings,
and Other Pertinent Documents; and
(ii) 252.211-7002, Availability for Examination of
Specifications, Standards, Plans, Drawings, Data Item
Descriptions, and Other Pertinent Documents.
11.204 Solicitation provisions and contract clauses.
( (c) The contracting officer shall insert a provision
Substantially the same as the provision at 52.211-3,
Availability of Specifications Not Listed in the GSA
Index of Federal Specifications, Standards and
Commercial Item Descriptions, in solicitations that
cite specifications that are not listed in the Index and
are not furnished with the solicitation, but may be
obtained from a designated source.
May affect activities associated with
7.2, 7.3, 7.4, 7.5 – can take into account
commercial/contractor documents
RMC Auditor Workshop
June 21-22, 2007
DFARS - Supplements to FAR
211.273 Substitutions for military or Federal
specifications and standards.
211.273-1 Definition.
“SPI process,” as used in this section, is defined in
the clause at 252.211-7005, Substitutions for Military
or Federal Specifications and Standards.
211.273-2 Policy.
(a) Under the Single Process Initiative (SPI), DoD
accepts SPI processes in lieu of specific military or
Federal specifications or standards that specify a
management or manufacturing process.
(b) DoD acceptance of an SPI process follows the
decision of a Management Council, which includes
representatives of the contractor, the Defense
Contract Management Agency, the Defense Contract
Audit Agency, and the military departments.
11.204 Solicitation provisions and contract clauses.
( (c) The contracting officer shall insert a provision
Substantially the same as the provision at 52.211-3,
Availability of Specifications Not Listed in the GSA
Index of Federal Specifications, Standards and
Commercial Item Descriptions, in solicitations that
cite specifications that are not listed in the Index and
are not furnished with the solicitation, but may be
obtained from a designated source.
May affect activities associated with
7.2, 7.3, 7.4, 7.5 – SPIs are typically
used as contract mods
RMC Auditor Workshop
June 21-22, 2007
UID (7.5.3)
DFAR 211.274-2 Policy for unique item identification.
(a) It is DoD policy that DoD unique item identification, or a DoD recognized unique
identification equivalent, is required for—
(1) All delivered items for which the Government’s unit acquisition cost is $5,000 or more;
(2) Items for which the Government’s unit acquisition cost is less than $5,000,
when identified by the requiring activity as serially managed, mission essential, or controlled inventory;
(3) Items for which the Government’s unit acquisition cost is less than $5,000, when the requiring activity
determines that permanent identification is required; and
(4) Regardless of value—
(i) Any DoD serially managed subassembly, component, or part embedded within a delivered item; and
(ii) The parent item (as defined in 252.211-7003(a)) that contains the embedded subassembly, component, or
part.
(b) Exceptions. The Contractor will not be required to provide DoD unique item
identification if—
(1) The items, as determined by the head of the agency, are to be used to support a contingency operation or to
facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack; or
(2) A determination and findings has been executed concluding that it is more cost effective for the Government
requiring activity to assign, mark, and register the unique item identification after delivery of an item acquired
from a small business concern or a commercial item acquired under FAR Part 12 or Part 8.
(i) The determination and findings shall be executed by—
(A) The Component Acquisition Executive for an acquisition category (ACAT) I program; or
(B) The head of the contracting activity for all other programs.
(ii) The DoD Unique Item Identification Program Office must receive a copy of the determination and findings
required by paragraph (b)(2)(i) of this subsection. Send the copy to DPAP, SPEC ASST, 3060 Defense
Pentagon, 3E1044, Washington, DC 20301-3060; or by facsimile to (703) 695-7596.
RMC Auditor Workshop
June 21-22, 2007
GIDEP (7.3, 7.4, 8.)
What is GIDEP?
GIDEP (Government-Industry Data Exchange Program) is a cooperative activity
between government and industry participants seeking to reduce or eliminate
expenditures of resources by sharing technical information essential during
research, design, development, production and operational phases of the life
cycle of systems, facilities and equipment.
What does GIDEP have to offer?
Since GIDEP's inception, participants have reported over $1 BILLION in
prevention of unplanned expenditures. That means without GIDEP, participants
could have potentially realized additional expenses of over $1 billion. Proper
utilization of GIDEP data can materially improve the total quality and reliability
of systems and components during the acquisition and logistics phases of the life
cycle and reduce costs in the development and manufacture of complex systems
and equipment.
RMC Auditor Workshop
June 21-22, 2007
RMC Auditor Workshop
June 21-22, 2007
Berry Ammendment (7.4)
DFAR 225.7000 Scope of subpart.
(a) This subpart contains restrictions on the acquisition of foreign products and services, imposed by DoD
appropriations and authorization acts and other statutes. Refer to the acts to verify current applicability of the
restrictions.
(b) Nothing in this subpart affects the applicability of the Buy American Act or the Balance of Payments
Program.
225.7002-1 Restrictions.
The following restrictions implement 10 U.S.C. 2533a (the “Berry Amendment”). Except as provided in
subsection 225.7002-2, do not acquire—
(b) Specialty metals, including stainless steel flatware, unless the metals were melted in steel manufacturing
facilities located within the United States. (For guidance on dealing with noncompliance with this requirement,
see PGI 225.7002-1(b).)
See DoD Class Deviation 2006-O0004, Restriction on Procurement of Specialty Metals, issued on December
6, 2006. This deviation is effective until incorporated into the DFARS or rescinded.
RMC Auditor Workshop
June 21-22, 2007
RoHS (7.3)
The RoHS Directive stands for "the restriction of the use of certain hazardous substances in
electrical and electronic equipment". This Directive bans the placing on the EU market of
new electrical and electronic equipment containing more than agreed levels of lead,
cadmium, mercury, hexavalent chromium, polybrominated biphenyl (PBB) and
polybrominated diphenyl ether (PBDE) flame retardants.
Manufacturers need to understand the requirements of the RoHS Directive to ensure
that their products, and their components, comply.
Studies of the effect of “lead free“ in Aerospace has been and is
still ongoing!
RMC Auditor Workshop
June 21-22, 2007
CSI (7.3, 7.4, 7.5)
AIA is currently working with Mr. Allen on revising the CSI
Handbook
RMC Auditor Workshop
June 21-22, 2007
RMC Auditor Workshop
June 21-22, 2007
Referenced Web Sites

Federal Acquisition Regulations (FAR)
• http://www.arnet.gov/far/
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Defense FAR Supplememnt (DFAR)
• http://www.acq.osd.mil/dpap/dars/dfars/
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Excluded Parties List (Debarred)
• http://www.epls.gov/
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ASSIST Data Base
• http://assist.daps.dla.mil/online/start/

GIDEP
• http://www.gidep.org/
RMC Auditor Workshop
June 21-22, 2007