• 4,000 firms
  • Independent
  • Trusted
Save up to 70% on staff

Home » Glossary » DFARS

DFARS

Definition

DFARS

DFARS is the defence supplement to the US federal acquisition rules, adding requirements that apply to defence contracts specifically. Its cyber clause drives the flow-down, obliging contractors to impose the same safeguarding duties on the suppliers beneath them.

Flow-down is what makes this a supply chain issue rather than a prime contractor one.

A single clause in a prime contract propagates downward through every tier that touches covered information — companies with no direct relationship to the defence department end up operating to its requirements.

Most of them find out when a customer sends a contract amendment, which is a poor moment to discover what the obligations cost.

Key takeaways

  • DFARS supplements the federal acquisition regulation for defence contracts.
  • Clause 252.204-7012 covers safeguarding covered defence information and cyber incident reporting.
  • Cyber incidents must be reported within 72 hours of discovery.
  • Assessments must be current, meaning not more than three years old.

How it works

The relevant material sits in the subpart on safeguarding covered defence information and cyber incident reporting. Several clauses operate together rather than one doing all the work.

Clause 252.204-7012 is the core safeguarding and reporting obligation. Around it sit 252.204-7008 on compliance, 252.204-7009 on the use of third-party incident information, and 252.204-7019 and 252.204-7020 on assessment requirements.

Reporting speed is defined rather than left to judgement — to report rapidly means within 72 hours of discovery of any cyber incident, which is a demanding window for an organisation that has just discovered a problem.

Assessment currency is the second hard number. Assessments must be not more than three years old, unless a shorter period is specified in the solicitation.

The flow-down mechanism is specific about reporting routes. Subcontractors provide the incident report number assigned by the department to the prime contractor, and lower tiers pass their number to the tier above until the prime is reached.

The underlying security requirements come from elsewhere. They are the controlled unclassified information requirements for non-federal systems, which the clauses incorporate rather than restate.

ClauseWhat it does
252.204-7008Compliance with safeguarding controls
252.204-7009Limits on using third-party incident information
252.204-7012Core safeguarding and 72-hour incident reporting
252.204-7019Notice of assessment requirements in solicitations
252.204-7020Assessment requirements in contracts and task orders

Read 252.204-7009 carefully if you are a subcontractor — it restricts what a prime may do with incident information you reported, which is a protection rather than a burden.

Examples

Defence clauses reach organisations that never negotiated with the government, and the reporting chain is where the practical difficulty concentrates. Each case below involves a control that somebody assumed the other party owned.

A commercial software supplier receives flow-down clauses through a prime. Its obligations are real and it has no relationship with the department imposing them.

A subcontractor detects an incident and must report through the chain. Report numbers travel upward tier by tier, which takes coordination nobody rehearsed.

A contractor’s assessment is three and a half years old at bid time. Currency is a stated requirement, so compliance outsourcing support cannot retroactively fix the date.

A prime asks a supplier to accept clauses it cannot meet. That is a vendor management outsourcing conversation better held before award than after.

Related terms

Defence acquisition layers clauses, programmes and underlying standards, and suppliers frequently mistake one for another. Each entry here is kept narrow, and the narrowness is the genuinely useful part.

FAQ

What does DFARS stand for?

The Defense Federal Acquisition Regulation Supplement, which adds defence-specific requirements on top of the general federal acquisition regulation.

What is clause 252.204-7012?

The core clause covering safeguarding of covered defence information and cyber incident reporting, including the rapid reporting obligation.

What is the incident reporting deadline?

Rapid reporting is defined as within 72 hours of discovery of any cyber incident. The clock runs from discovery, not from confirmation.

How current must an assessment be?

Not more than three years old, unless the solicitation specifies a shorter period. Stale assessments affect eligibility.

Do these clauses flow down to subcontractors?

Yes. Obligations pass down the tiers, and incident report numbers pass back up until they reach the prime contractor.

How does DFARS relate to CMMC?

CMMC verifies that the practices these clauses require have actually been implemented, rather than imposing separate security requirements.

Begin at Outsource Accelerator and count the clauses that flow down before you price the work.

Companies you might be interested in

Get Inside Outsourcing

An insider's view on why remote and offshore staffing is radically changing the future of work.

Order now

Start your
journey today

  • Independent
  • Secure
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 4,700+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

Learn more
Banner Image
Get 3 Free Quotes Verified Outsourcing Suppliers
4,000 firms.Just 2 minutes to complete.
SAVE UP TO
70% ON STAFF COSTS
Learn more

Connect with over 4,000 outsourcing services providers.

Banner Image

Transform your business with skilled offshore talent.

  • 4,000 firms
  • Simple
  • Transparent
Banner Image