Redstone Government Consulting Blog | DFARS Business Systems

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Topics: Proposal Cost Volume Development & Pricing, Contracts & Subcontracts Administration, DFARS Business Systems, DCAA Audit Support, Government Regulations, Estimating System Compliance, Commercial Determination

The Department of War has suspended CMMC Phase II implementation while it reviews the program and seeks industry input on reducing compliance burdens. Government contractors should understand which requirements remain in effect, how active solicitations may change, and what the temporary pause could mean for assessment costs and future cybersecurity obligations.

Topics: Small Business Compliance, Contracts & Subcontracts Administration, DFARS Business Systems, Government Regulations, Cybersecurity, Manufacturing Operations Consulting, REAs, Claims & Terminations

Federal acquisition policy is shifting fixed-price contracting back to the default and preferred approach under Executive Order 14402 and updated FAR Council guidance. With implementation beginning in July 2026, government contractors should consider how contract type, pricing risk, existing awards, and contract administration may be affected.

Topics: Proposal Cost Volume Development & Pricing, Contracts & Subcontracts Administration, DFARS Business Systems, Contractor Purchasing System Review (CPSR), Government Regulations, Federal Acquisition Regulation (FAR), Manufacturing Operations Consulting

The FAR Council’s June 23, 2026, proposed rules begin implementing the Revolutionary FAR Overhaul, with comments due July 23, 2026. Government contractors should evaluate how streamlined FAR text, revised clauses, security requirements, acquisition planning changes, and termination timelines may affect contract administration and compliance.

Topics: Contracts & Subcontracts Administration, DFARS Business Systems, Government Regulations, Federal Acquisition Regulation (FAR), Cybersecurity

Two new Executive Orders signal increased federal action around quantum innovation and post-quantum cryptography. For government contractors and new entrants, participation in these initiatives will require careful attention to funding structures, FAR changes, NIST requirements, and compliance expectations.

Topics: Contracts & Subcontracts Administration, DFARS Business Systems, Contractor Purchasing System Review (CPSR), Government Regulations, Federal Acquisition Regulation (FAR), Cybersecurity, Commercial Determination, Manufacturing Operations Consulting

Buy American Act compliance now requires closer review of component origin, domestic content thresholds, and contract-specific exceptions. For government contractors, the increased domestic content requirements and differences between FAR and DFARS make sourcing, supplier certifications, and documentation critical to supporting accurate compliance certifications.

Topics: Contracts & Subcontracts Administration, DFARS Business Systems, Contractor Purchasing System Review (CPSR), Government Regulations, Federal Acquisition Regulation (FAR), Material Management & Accounting System (MMAS), Commercial Determination, Manufacturing Operations Consulting

Reporting of Independent Research and Development (IR&D) projects on the Defense Technical Information Center (DTIC) portal is normally due no later than three months after the contractor’s fiscal year-end, both annually and upon project completion. However, the DTIC portal was offline from November 2025 until approximately April 20, 2026, due to cyber vulnerabilities. Despite the nearly six‑month outage, Defense Pricing, Contracting and Acquisition Policy (DPCAP) has provided contractors just over 30 days, until May 31, 2026, to enter all required IR&D information, including new projects, annual updates, and closed projects. This accelerated timeline contrasts with the DFARS allowance of up to three months after the fiscal year-end for reporting.

Topics: Accounting System Compliance, Incurred Cost Proposal Submission (ICP/ICE), Contracts & Subcontracts Administration, DFARS Business Systems, Defense Procurement & Acquisition Policy (DPAP), Government Regulations, Federal Acquisition Regulation (FAR)

OMB’s new guidance directs agencies to expand commercial acquisitions and justify non-commercial awards. Government contractors may see closer review of commerciality, pricing, option periods, and cost-reimbursement contracts, making support for market research and contract decisions more important.

Topics: Proposal Cost Volume Development & Pricing, Small Business Compliance, Contracts & Subcontracts Administration, DFARS Business Systems, DCAA Audit Support, Government Regulations, Federal Acquisition Regulation (FAR), Material Management & Accounting System (MMAS), Cybersecurity, Commercial Determination, Manufacturing Operations Consulting

In June 2023, the Armed Services Board of Contract Appeals (ASBCA) denied Honeywell's motion to dismiss a $151 million claim alleging improper G&A allocation treatment under CAS 410. The Board affirmed that interdivisional cost transfers must be included in a total cost input base, contradicting Honeywell's position. Government contractors should review whether their G&A allocation bases are consistent with this ruling.

Topics: Accounting System Compliance, Proposal Cost Volume Development & Pricing, Contracts & Subcontracts Administration, DFARS Business Systems, DCAA Audit Support, Government Regulations, Cost Accounting Standards (CAS)

The Cost Accounting Standards (CAS) Board has been working to eliminate several cost accounting standards and replace them with reliance on GAAP. As of April 2026, five standards are under proposed elimination, including a new March 2026 NPRM for CAS 407. Contractors should be aware that removing these standards does not eliminate cost accounting or consistency obligations.

Topics: Accounting System Compliance, Contracts & Subcontracts Administration, DFARS Business Systems, DCAA Audit Support, Government Regulations, Cost Accounting Standards (CAS)