Class Deviation 2013-O0009
Prohibition on the Use of Cost-Type Contracts for Production of Major Defense Acquisition Programs

For contracts entered into on or after October 1, 2014, as required by section 811 of the National Defense Authorization Act for FY13 (Public Law 112-239), contracting officers shall not use cost-type contracts for the acquisition of production of major defense acquisition programs, unless the following exception applies.


Section 811 provides that the above prohibition does not apply to a particular cost-type contract if USD(AT&L) submits to the congressional defense committees-

  1. A written certification that the particular cost-type contract is needed to provide a required capability in a timely and cost-effective manner; and
  2. An explanation of the steps taken to ensure the use of cost-type pricing is limited to only those line items or portions of the contract where such pricing is needed to achieve the purposes of the exception.


Major defense acquisition program - The term "major defense acquisition program" is defined in section 2430(a) of title 10, United States Code as implemented in Directive-Type Memorandum 09-027 - Implementation of the Weapon Systems Acquisition Reform Act of 2009, dated December 4, 2009.

Production of a major defense acquisition - The term "production of a major defense acquisition program" means the production and deployment of a major system that is intended to achieve an operational capability that satisfies mission needs, or any activity otherwise defined as Milestone C under Department of Defense Instruction 5000.02 or related authorities.

Contract for the production of a major defense acquisition program - The term "contract for the production of a major defense acquisition program"-

  1. Means a prime contract for the production of a major defense acquisition program; and
  2. Does not include individual line items for segregable efforts or contracts for the incremental improvement of systems that are already in production (other than contracts for major upgrades that are themselves major defense acquisition programs).
  3. This class deviation is effective until it is incorporated in the DFARS, or is otherwise rescinded.

Effective Date: March 11, 2013 (10 years ago)
Expire Date: None Given
Incorporated: September 30, 2014 (8 years ago)
Official Documents: Memo
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