2025 - The DFARS - Part 202 - Definition Of Words And Terms

2025 - JSchaus & Associates in Washington DC present a complimentary webinar series covering The DFARS, Defense Federal Acquisition Regulation Supplement. Learn about US Federal Government Contracting with The Department of Defense, DoD. Defense Contracting. Defense Acquisition. Federal Contracting.

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1. The DFARS – 2025 The Defense Federal Acquisition Regulation Supplement A Complimentary Webinar Series JSchaus & Associates – Washington DC – [email protected]

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13. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] THE DFARS – PART 202

14. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] DFARs PART #: 202 DFARS PART: Definitions Of Words And Terms SPEAKER: Joelynn Laux FIRM: Parallax Advanced Research EMAIL: [email protected] TODAYS SPEAKER + TOPIC

15. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Agenda: Overview DFARS vs. FAR Key Definitions Impact & Application Best Practices

16. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] FAR vs. DFARS – What’s The Difference? FAR Part 2 – Definitions of Words & Terms (Government-wide application ) DFARS Part 202 – DOD-Specific Modifications & Additions Key Differences: DOD-specific procurement needs Additional terms unique to defense acquisitions Expanded definitions in some cases

17. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] DFARS Part 202 What is DFARS? Defense Federal Acquisition Regulation Supplement (DFARS) – It supplements the FAR with DOD-specific regulations What is DFARS Part 202? Establishes definitions for terms used throughout DFARS Ensures consistency in interpretation for DOD contracts Where DFARS Part 202 Applies: Prime Contracts, Subcontracts, OTAs (as applicable)

18. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Key Definitions Contract Administration Office Contracting Activity Contracting Officer’s Representative Cyber Incident Departments and Agencies Department of Defense Head of the Agency Material Weakness Nontraditional Defense Contractor

19. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Contract Administration Office “Contract administration office” also means a contract management office of The Defense Contract Management Agency. Importance & Impact: Ensures contract performance monitoring, compliance , and oversight. Administers payments, modifications , and subcontracto r compliance. Managed primarily by Defense Contract Management Agency (DCMA). Conducts quality assurance, audits, and supply chain integrity checks.

20. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Contracting Activity “Contracting activity” for DoD also means elements designated by the director of a defense agency which has been delegated contracting authority through its agency charter. DoD contracting activities are listed at PGI  202.101  . Importance & Impact: Designates which DOD offices have contracting authority. Impacts who can issue, negotiate, and administer contracts. Listed in DFARS PGI 202.101 for reference . (Procedures, Guidance & Information) DFARS PGI: https://www.acquisition.gov/dfarspgi

21. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Contracting Officers Representative (COR) “Contracting officer's representative” means an individual designated and authorized in writing by the contracting officer to perform specific technical or administrative functions. Importance & Impact: Appointed by the Contracting Officer (CO) to oversee contract execution. Ensures contractor performance, technical compliance, and reporting. Acts as a liaison between the contractor and the government.

22. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Cyber Incident “Cyber incident” means actions taken through the use of computer networks that result in a compromise or an actual or potentially adverse effect on an information system and/or the information residing therein. Importance & Impact: Must be reported within 72 hours if covered defense information is compromised . Impacts CMMC (Cybersecurity Maturity Model Certification) compliance. Non-compliance can lead to contract loss, penalties, or security violations. Learn More about CMMC: https://www.jenniferschaus.com/compliance-cyber-cmmc

23. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Departments & Agencies “Departments and agencies,” as used in DFARS, means the military departments and the defense agencies. The military departments are: The Departments of the Army, Navy, and Air Force Th e Marine Corps is a part of the Department of the Navy T he Space Force is a part of the Air Force

24. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Departments & Agencies The defense agencies are: The Defense Advanced Research Projects Agency, the Defense Commissary Agency, the Defense Contract Management Agency, the Defense Counterintelligence and Security Agency, the Defense Finance and Accounting Service, the Defense Health Agency, the Defense Information Systems Agency, the Defense Intelligence Agency, the Defense Logistics Agency, the Defense Threat Reduction Agency, the Missile Defense Agency, the National Geospatial-Intelligence Agency, the National Security Agency, the United States Cyber Command, the United States Special Operations Command, the United States Transportation Command, and the Washington Headquarters Service.

25. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Departments & Agencies Importance & Impact: Includes military departments (Army, Navy, Air Force) & defense agencies (DIA, NSA, DCMA, etc.). Defines which entities issue and manage DOD contracts.

26. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Department Of Defense “Department of Defense (DoD),” as used in DFARS, means the Department of Defense, the military departments, and the defense agencies. Importance & Impact: Refers to the entire DOD enterprise, including military services and defense agencies. Sets procurement policies , acquisition priorities , and regulatory frameworks. Oversees major defense acquisition programs and funding allocations.

27. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Head Of The Agency “Head of the agency” means, for DoD, the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force. Subject to the direction of the Secretary of Defense, the Under Secretary of Defense (Acquisition and Sustainment), and the Principal Director, Defense Pricing, Contracting, and Acquisition Policy, the directors of the defense agencies have been delegated authority to act as head of the agency for their respective agencies (i.e., to perform functions under the FAR or DFARS reserved to a head of agency or agency head ), except for such actions that by terms of statute, or any delegation, must be exercised within the Office of the Secretary of Defense. (For emergency acquisition flexibilities, see  218.270   .)

28. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Head Of The Agency Importance & Impact: The highest authority within a DOD department or agency for procurement decisions . Can approve deviations, waivers, and acquisition strategies.

29. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Material Weakness “Material weakness” means a deficiency or combination of deficiencies in the internal control over information in contractor business systems, such that there is a reasonable possibility that a material misstatement of such information will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is— (1) Probable; or (2) More than remote but less than likely (section 806 of Pub. L. 116-283).

30. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Material Weakness Importance & Impact: Defined as a deficiency in internal controls that could lead to financial or security risks. Can result in contract suspension, audits , or increased oversight. Used in contractor business system audits (e.g., DCAA & DCMA reviews). DCAA: Defense Contract Audit Agency DCMA: Defense Contract Management Agency

31. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Nontraditional Defense Contractor “Nontraditional defense contractor” means an entity that is not currently performing and has not performed any contract or subcontract for DoD that is subject to full coverage under the cost accounting standards prescribed pursuant to 41 U.S.C. 1502 and the regulations implementing such section, for at least the 1-year period preceding the solicitation of sources by DoD for the procurement (10 U.S.C. 3014). 41 U.S.C. 1502 – Cost Accounting Standards 10 U.S.C. 3014 – Nontraditional Defense Contractor

32. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Non-Traditional Defense Contractor Importance & Impact: Expands eligibility for companies that haven’t worked on DOD cost-based contracts in the past year. Enables use of Other Transaction Authorities (OTAs), reducing regulatory burdens. Encourages startups , commercial tech firms , and non-traditional suppliers to work with DOD. Learn More about OTA’s (outside of The FAR): https://www.jenniferschaus.com/other-transaction-authorities-ota

33. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] Best Practices Cross-check DFARS and FAR definitions for differences. Start with FAR Part 2 , then check DFARS 202.101 for DOD-specific changes. Stay updated on regulatory changes and class deviations. Train internal teams and subcontractors on key definitions. Use official sources like acquisition.gov and DFARS PGI. DFARS PGI: Procedures, Guidance & Information https://www.acquisition.gov/dfarspgi

34. The DFARS – 2025 - The Defense Federal Acquisition Regulation Supplement JSchaus & Associates – Washington DC – [email protected] THANK YOU For Attending! QUESTIONS? Please Contact Our Speaker: SPEAKER: Joelynn Laux FIRM: Parallax Advanced Research EMAIL: [email protected]

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36. Thank You For Attending! The DFARS – 2025 The Defense Federal Acquisition Regulation Supplement A Complimentary Webinar Series JSchaus & Associates – Washington DC – [email protected]