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DFARS (Defense Federal Acquisition Regulation Supplement) compliance refers to adherence to procurement regulations that supplement the Federal Acquisition Regulation for United States Department of Defense contracts. These regulations impose specific requirements on defense contractors and their supply chains regarding cybersecurity, cost accounting, material sourcing, and other operational aspects.
DFARS clauses become part of defense contracts and flow down to subcontractors and suppliers. Key requirements include restrictions on purchasing certain items from specified countries, cybersecurity standards for controlled unclassified information, and cost accounting system requirements for contracts above certain dollar thresholds. Organizations must implement controls and maintain documentation demonstrating compliance with applicable DFAR clauses.
Contractors face potential contract termination, penalties, or exclusion from future defense work for non-compliance. DFARS requirements are distinct from but may overlap with International Traffic in Arms Regulations (ITAR) controls. Organizations in the defense supply chain must identify which DFARS clauses apply to their contracts and establish systems to ensure ongoing compliance.
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