DFARS 207.171-3 Policy

Subsection Defense Federal Acquisition Regulation Supplement

Facts

Citation
DFARS 207.171-3
Type
Subsection
Supplements
FAR Subpart 7.1 Acquisition Plans
Last amended
71 FR 14101 Effective Mar 21, 2006
Text as of
DFARS Change May 7, 2026
Official text
acquisition.gov

Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.

Text

DoD policy is to break out components of weapons systems or other major end items under certain circumstances.

(a) When it is anticipated that a prime contract will be awarded without adequate price competition, and the prime contractor is expected to acquire any component without adequate price competition, the agency shall break out that component if—

(1) Substantial net cost savings probably will be achieved; and

(2) Breakout action will not jeopardize the quality, reliability, performance, or timely delivery of the end item.

(b) Even when either or both the prime contract and the component will be acquired with adequate price competition, the agency shall consider breakout of the component if substantial net cost savings will result from—

(1) Greater quantity acquisitions; or

(2) Such factors as improved logistics support (through reduction in varieties of spare parts) and economies in operations and training (through standardization of design).

(c) Breakout normally is not justified for a component that is not expected to exceed $1 million for the current year's requirement.

Federal Register history

Final rule Published Effective
Defense Federal Acquisition Regulation Supplement; Component Breakout 71 FR 14101 · DFARS Case 2003-D071

Quick answers

What is DFARS 207.171-3?

DFARS 207.171-3 is a subsection of the Defense Federal Acquisition Regulation Supplement, titled "Policy".

When was DFARS 207.171-3 last changed?

The most recent final rule on record is "Defense Federal Acquisition Regulation Supplement; Component Breakout" (71 FR 14101), published Mar 21, 2006 and effective Mar 21, 2006.

Are changes to DFARS 207.171-3 proposed?

No proposed rule from the last 3 years is waiting on a final rule.

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