RGCI - Do Any DoD Class Deviations Affect Your Contracts or Subcontracts

What is a Department of Defense (DoD) class deviation? It is a deviation from the Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation (DFARS) that affects more than one contract. They are issued by an authorized official and are used to deviate from the FAR or DFARS and offer flexibility in the acquisition process. Class deviations are supposed to be temporary. If the class deviation will become permanent, the Government is supposed to issue a proposed revision to the FAR or DFARS.

How Do I Know If I Have a Class Deviation in My Contract?

The class deviations will be identified in the clauses included in your solicitation/contract with parenthesis after the clause identifying the deviation (e.g., Deviation 2024-O0014). However, when you go to Acquistion.gov to read up on the class deviation, the details are not included as a part of the FAR/DFARS clauses. The class deviations used to be embedded in a different font under the FAR/DFARS clause that was impacted. Now you see it, now you don’t. However, the class deviation wording has since been removed from Acquisition.gov because it was too difficult for the Government to maintain updates. While the Government made it easy for them to manage by removing the language, it has made it difficult for contractors to manage.

The class deviations can be found on the Defense Pricing, Contracting, and Acquisition Policy (DPCAP) website. The website includes a list of open class deviations and closed deviations by year under the “Archived Class Deviations” section. We have seen where contractors include the links to the deviations in their flowdowns.

If you have contracts other than DoD, you need to be familiar with where the class deviations are filed for the agency you are working with. For example, the Department of Energy (DOE) files its deviations on the DOE website under the “Policy Flashes” section but doesn’t identify whether the deviation was open or closed.

Open Class Deviations

We listed a couple of the more common class deviations below:

While the Class deviation clause may be included in your solicitation or contract, the wording for the clause is not in the FAR/DFARS. We recommend visiting the DPCAP website to read and understand the deviation when applicable to your contract or subcontract.

Navigating DoD class deviations can be complex, but you don’t have to do it alone. Redstone GCI’s team of experts can help you interpret contract clauses, stay compliant with evolving regulations, and ensure your business meets all federal requirements. Whether you need guidance on FAR/DFARS compliance, contract management, or training for your team, we’re here to support you. Contact us today to learn how we can assist with your government contracting needs.

Written by Lynne Nalley, CPA

Lynne Nalley, CPA Lynne is a Director with Redstone Government Consulting, Inc. providing government contract consulting services to our clients primarily related to Commercial Item Determinations and support, Cost Accounting Standards, DFARS Business System Audits, Proposals, and Incurred Cost. Prior to joining Redstone Government Consulting, Lynne served in several capacities with DCAA and DCMA for over 35 years. Professional Experience Lynne began her career working with DCAA in the Honeywell Resident Office, Clearwater, FL in 1984. Lynne’s experience included various positions which involved conducting or reviewing forward proposals or rate audits, financial capability audits, progress payments, accounting and estimating systems, cost accounting standards, claims and disclosure statement reviews. She is an expert in FAR, DFARS, CAS and testified as an expert witness. Lynne assisted in drafting the commercial item guidance for DCAA Headquarters. Lynne was assigned as a Regional Technical Specialist where she provided guidance to 20 field offices on highly complex or technical issues relative to forward pricing, financial capability or progress payment issues. As an Assistant for Quality, she was involved in reviewing and ensuring audit reports were in compliance with policy and GAGAS as well as made NASBA certified presentations to the staff including but not limited to billing reviews, CAS, unallowable cost and progress payments. To enhance her experience in government contracting, Lynne accepted a position with DCMA in 2015 as part of the newly organized DCMA Cadre of Experts in the Commercial Item Group. This included performing reviews of prime contractor’s assertions and/or commercial item determinations as well as performing price analyses. Lynne was a project lead and later became a lead analyst where she engaged with the buying commands on requests and reviewed price analysis reviews performed by a team of 5 analysts. She also assisted the DCMA CPSR team relative to commercial items and co-instructed the Commercial Item Training presented to DCMA. Education Lynne earned a Bachelor of Science Degree in Accounting from the University of Central Florida. Certifications State of Florida Certified Public Accountant State of Alabama Certified Public Accountant Defense Acquisition Workforce Improvement Act (DAWIA) Level III- Auditing DAWIA Level III – Contracting

About Redstone GCI

Redstone GCI is a consulting firm focused on fulfilling the needs of government contractors in all areas of compliance. With a singular mission to help contractors through the multiple layers of “red tape,” we allow contractors to focus on what they do best – support their mission with the U.S. Government. We are home to a group of consultants made up of GovCon industry professionals, CPAs, attorneys, and retired government audit and acquisition professionals.

Our focus and knowledge of audit and compliance functions administered by DCAA and DCMA will always be at the heart of what we do. However, for the past decade, we’ve strategically grown to support other areas of the government contractor back-office with that same level of focus and expertise. We’ve added expertise in contracts management, subcontract administration, proposal pricing, various software systems, HR and employment law, property administration, manufacturing, data analytics/reporting, Grant specialists, M&A, and many other areas. When we see a trend in the needs of contractors, we act to ensure we can provide the best expertise in the market to fulfill those needs.

One thing our clients can be certain of is that with the Redstone GCI Team in your corner, there is no problem too big and no issue too technical for our team to tackle.

Topics: Contracts & Subcontracts Administration, System Award Management (SAM), Government Regulations, Cost Accounting Standards (CAS), Federal Acquisition Regulation (FAR), Cybersecurity