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FAR / DFARS Clause Library

Plain-English explanations of the 65 most-cited Federal Acquisition Regulation (FAR) and Defense FAR Supplement (DFARS) clauses. What each clause means, when it applies, contractor impact, and common pitfalls — built for small and mid-size federal contractors.

Small Business

(10)
FAR52.219-9

Small Business Subcontracting Plan

Requires large business primes (other-than-small) to submit and maintain a Small Business Subcontracting Plan setting specific small business participation goals on contracts above the simplified acquisition threshold.

FAR52.219-14

Limitations on Subcontracting

Sets the percentage of work a small business prime must self-perform on a set-aside contract (currently 50% for services and supplies, with similar limits for construction).

FAR52.219-28

Post-Award Small Business Program Rerepresentation

Requires contractors to rerepresent their small business size status at multiple post-award checkpoints, including option exercises, novations, mergers, and the 5-year anniversary of long-term contracts.

FAR52.219-6

Notice of Total Small Business Set-Aside

Restricts competition to small business concerns for the specific NAICS code identified in the solicitation.

FAR52.219-3

Notice of HUBZone Set-Aside or Sole Source Award

Restricts competition to HUBZone small business concerns. Includes provisions for HUBZone sole-source awards.

FAR52.219-27

Notice of Service-Disabled Veteran-Owned Small Business Set-Aside

Restricts competition to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). Includes sole-source provisions.

FAR52.219-29

Notice of Set-Aside for Women-Owned Small Business

Restricts competition to Economically Disadvantaged Women-Owned Small Business (EDWOSB) concerns in eligible industries. Companion clause 52.219-30 covers WOSB set-asides.

FAR52.219-1

Small Business Program Representations

Requires offerors to represent their small business status, including socioeconomic categories (HUBZone, SDVOSB, WOSB, EDWOSB, 8(a)) for the NAICS code applicable to the solicitation.

FAR52.219-8

Utilization of Small Business Concerns

Requires large business primes to actively seek out small business subcontracting opportunities and treat small business participation as a contractual obligation.

FAR52.219-16

Liquidated Damages — Subcontracting Plan

Establishes liquidated damages for primes that fail to make good-faith effort to comply with their Small Business Subcontracting Plan.

Commercial Items

(4)

Cybersecurity

(9)
DFARS252.204-7012

Safeguarding Covered Defense Information and Cyber Incident Reporting

Requires DoD contractors and subcontractors handling Covered Defense Information (CDI) to implement NIST SP 800-171 security controls and report cyber incidents within 72 hours.

DFARS252.204-7019

Notice of NIST SP 800-171 DoD Assessment Requirements

Requires offerors on DoD solicitations involving CDI to have a current Basic, Medium, or High self-assessment score posted in the Supplier Performance Risk System (SPRS).

DFARS252.204-7020

NIST SP 800-171 DoD Assessment Requirements

Contract clause version of the SPRS requirement — flows down to subcontractors and requires score updates during performance.

DFARS252.204-7021

Cybersecurity Maturity Model Certification Requirements

Implements the CMMC program — requires contractors handling FCI or CDI to achieve and maintain a CMMC certification at the level specified in the solicitation.

FAR52.204-21

Basic Safeguarding of Covered Contractor Information Systems

Establishes 15 basic cybersecurity controls federal contractors must implement on systems processing or storing Federal Contract Information (FCI).

FAR52.204-25

Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment

Prohibits federal contractors from using or providing covered telecommunications equipment (Huawei, ZTE, Hytera, Hangzhou Hikvision, Dahua) or services that use such equipment in any government work.

FAR52.204-23

Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab and Other Covered Entities

Prohibits federal contractors from using Kaspersky Lab anti-virus software (and related products from successor or affiliated entities) on any system used in federal contract performance.

FAR52.239-1

Privacy or Security Safeguards

Requires contractors handling information systems on behalf of the government to implement security safeguards and to comply with FedRAMP authorization where cloud services are involved.

FAR39.201

Section 508 Accessibility Requirements

Implements Section 508 of the Rehabilitation Act — requires federal IT products and services to be accessible to people with disabilities, as detailed in the Section 508 Refresh standards.

Cost & Pricing

(12)
FAR52.215-20

Requirements for Certified Cost or Pricing Data

Requires offerors to submit certified cost or pricing data on negotiated contracts over the TINA threshold (currently $2 million) when no exception applies.

FAR52.232-25

Prompt Payment

Establishes the government's obligation to pay valid invoices within 30 days (or other applicable timeframe) and the contractor's right to interest on late payments under the Prompt Payment Act.

FAR52.232-7

Payments under Time-and-Materials and Labor-Hour Contracts

Governs payment of labor hours at fixed hourly rates and reimbursement of materials at actual cost under T&M and labor-hour contracts.

FAR52.215-12

Subcontractor Certified Cost or Pricing Data

Requires primes to flow down TINA cost/pricing data requirements to subcontractors when the subcontract value exceeds the TINA threshold.

FAR52.215-21

Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data — Modifications

Applies TINA cost/pricing data requirements to contract modifications over the TINA threshold.

FAR52.230-2

Cost Accounting Standards

Requires contractors to comply with applicable Cost Accounting Standards (CAS) on negotiated contracts over the CAS threshold.

FAR52.232-33

Payment by Electronic Funds Transfer — System for Award Management

Requires contractor banking information to be maintained in SAM.gov and payments to be made via EFT to the SAM-listed account.

FAR52.216-22

Indefinite Quantity

Standard IDIQ contract clause establishing minimum and maximum order quantities, task order procedures, and ordering rights.

FAR52.216-18

Ordering

Specifies how orders are placed under IDIQ contracts — typically by the contracting officer or designated ordering activities.

FAR52.217-9

Option to Extend the Term of the Contract

Government's right to unilaterally extend the contract term (typically by exercising option periods) for an additional period at pre-negotiated pricing.

FAR52.217-8

Option to Extend Services

Allows the government to unilaterally extend service contracts for up to 6 months beyond the contract term to bridge gaps in follow-on award timing.

FARFAR 16.301-3

Cost-Reimbursement Contract Adequate Accounting System

Establishes the requirement that contractors awarded cost-reimbursement contracts must have an accounting system adequate for determining costs applicable to the contract.

Termination

(4)

Disputes & Protests

(1)

Inspection & Acceptance

(3)

Labor & Compliance

(12)
FAR52.222-26

Equal Opportunity

Requires contractors to comply with Executive Order 11246's nondiscrimination requirements in employment and to file annual EEO-1 reports.

FAR52.222-50

Combating Trafficking in Persons

Prohibits contractor and subcontractor engagement in trafficking, forced labor, and related conduct, and requires a written compliance plan for contracts over $500K performed outside the U.S.

FAR52.222-41

Service Contract Labor Standards (Service Contract Act)

Implements the McNamara-O'Hara Service Contract Act — requires contractors performing federal service contracts to pay prevailing wages and fringe benefits per Department of Labor Wage Determinations.

FAR52.222-6

Construction Wage Rate Requirements (Davis-Bacon Act)

Implements the Davis-Bacon Act — requires construction contractors on federally funded projects to pay laborers and mechanics at least the prevailing wage rates determined by the Department of Labor.

FAR52.203-13

Contractor Code of Business Ethics and Conduct

Requires federal contractors with contracts over $6M and 120-day performance to maintain a written code of ethics, training program, internal reporting mechanism, and disclosure to the agency Inspector General of credible evidence of fraud, bribery, or False Claims Act violations.

FAR52.204-7

System for Award Management

Requires offerors and contractors to be registered and active in SAM.gov to receive an award and to be paid under a federal contract.

FAR52.204-13

System for Award Management Maintenance

Requires contractors to update SAM.gov representations within 30 days of any change and to re-certify annually.

FAR52.203-7

Anti-Kickback Procedures

Prohibits federal contractors and their employees from soliciting, offering, accepting, or paying kickbacks in connection with government contracts. Requires written policies and reporting.

FAR52.203-14

Display of Hotline Posters

Requires contractors to display fraud, waste, and abuse hotline posters (DoD or agency IG hotline) prominently in contractor work areas and to provide them to employees.

FAR52.222-43

Fair Labor Standards Act and Service Contract Labor Standards — Price Adjustment (Multiple Year and Option Contracts)

Provides for price adjustments to Service Contract Act covered contracts when DOL Wage Determinations are updated during option exercises on multi-year contracts.

FAR52.222-44

Fair Labor Standards Act and Service Contract Labor Standards — Price Adjustment

Counterpart to 52.222-43 for single-year SCA contracts — provides price adjustments when DOL Wage Determinations are updated during contract performance.

FAR52.204-14

Service Contract Reporting Requirements

Requires contractors performing service contracts above $150K to report annual service contract data including labor hours and dollars by labor category to SAM.gov.

Data Rights

(4)

Buy American

(4)

Insurance & Bonding

(2)

FAR / DFARS Frequently Asked Questions

What is the FAR?

The Federal Acquisition Regulation (FAR) is the primary set of rules governing how the U.S. federal government acquires goods and services. The FAR consists of 53 parts covering everything from contract types and small business programs to ethics, intellectual property, and termination. Civilian and DoD agencies follow the FAR; DoD adds the DFARS (Defense Federal Acquisition Regulation Supplement) for defense-specific rules.

What is the difference between FAR and DFARS?

The FAR applies to all federal agency acquisitions. The DFARS supplements the FAR for the Department of Defense — it adds, modifies, or restricts FAR clauses where DoD has unique requirements (e.g., cybersecurity under DFARS 252.204-7012, CMMC under DFARS 252.204-7021, or commercial item determinations).

How do I know which clauses are in my contract?

Every federal contract has a Section I (Contract Clauses) that lists the FAR and DFARS clauses incorporated. Some clauses are incorporated by reference (citation only) and others are written out in full. Always review Section I in detail — a single clause flow-down obligation (e.g., 252.204-7012) can drive significant compliance investment.

Do FAR clauses flow down to subcontractors?

Many do — particularly the cybersecurity, small business, equal opportunity, and trafficking clauses. Each clause specifies its flow-down obligations. Primes are responsible for flowing the right clauses to subs and verifying compliance. Failure to flow down can expose the prime to FCA liability and contract penalties.

Where can I find the official text of a FAR clause?

The official FAR and DFARS text lives at acquisition.gov. Each clause page on Aliff includes a direct link to the official source. Always verify against acquisition.gov when making compliance decisions, as clauses are updated periodically.