DFARS Proposed Rule Provides Guidance on Indirect Offset Costs

A new proposed rule would amend the DFARS to provide guidelines to contracting officers when an indirect offset is a condition of a foreign military sales contract.  This new proposed rule expands on a 2015 interim rule to state that submission of certified cost or pricing data shall not be required in the case of a contract, a subcontract, or modification of a contract or subcontract to the extent such data relates to an offset agreement in connection with a contract for the sale of a weapon system or defense-related item to a foreign country or foreign firm; and does not relate to a contract or subcontract under the offset agreement for work performed in such foreign country or by such foreign firm that is directly related to the weapon system or defense-related item being purchased under the contract.