Last week, FSi, along with co-sponsors Kongsberg Defence & Aerospace, Nammo, ML Weekes and Haynes Boone, invited to the 9th annual FAR/DFARS seminar.
Its become sort of a tradition now, and the attendance has increased year by year (180) for this two-day event attracting industry leaders, compliance managers, and corporate legal teams.
The venue buzzed with intense discussions on U.S. government procurement regulations, cybersecurity requirements, contract negotiation, and compliance strategies, underscoring both the complexity and growing importance of FAR and DFARS frameworks for Norwegian and Nordic defence companies delivering to U.S. entities.
Understanding FAR and DFARS
The Federal Acquisition Regulation (FAR) serves as the foundational set of rules governing how the U.S. federal government acquires goods and services across civilian agencies. It mandates standardized procedures related to:
- Contract formation and solicitation
- Pricing policies and allowable costs
- Flow-down clauses binding subcontractors
Meanwhile, the Defense FAR Supplement (DFARS) augments FAR specifically for the Department of Defense. It adds requirements critical for defense contracts, such as:
- Controlled Unclassified Information (CUI) and NIST SP 800-171
- Specialized sourcing and cost-analysis tailored to defense
- Clauses addressing technology transfer, export controls, and security standards
- Cybersecurity measures related to the new standard CMMC
Collectively, these regulations ensure transparency, cost control, and secure flow of sensitive information across the supply chain, crucial for businesses supplying the U.S. defense market.
The event offered a comprehensive agenda, going through step by step the flow in the supply chain, starting with “The basics on US Government Acquisition Regulations” (Haynes & Boone) to RFP decoding (BAE Systems), risk assessment workflows (ML Weekes), cyber risk via CMMC (Accenture), and managing CUI in Nordic contexts (Nordic Council).
Cost & pricing, negotiation techniques and insights
Further followed: cost & pricing deep dives, negotiation techniques with prime and DoD customers, spotlight from U.S. government reps, and insights on compliance journeys.
The always popular and important after work reception allowed for networking, meeting up with many old industry friends (yes, after 9 years attendance it feels quite familiar) and sharing of challenges and best practices, essential for navigating FAR/DFARS requirements.
The seminar placed a strong dual emphasis on both civilian (FAR) and Department of Defense-specific (DFARS) regulations, with particular focus on cybersecurity requirements under the Cybersecurity Maturity Model Certification (CMMC) and the handling of Controlled Unclassified Information (CUI).
Understanding and documenting
A key theme was the importance of understanding how DoD contract clauses flow down through the supply chain, creating binding obligations not only for prime contractors but also for their subcontractors. We have talked about the importance of flowing down, not flushing down, the crucial requirements, a necessity to be able to offer a secure and compliant supply chain.
As said several times during the two days: “Document, document and document. Document contract negotiations, keep your personal notes, write down dates for agreements, protect signed agreements and working documents“.
Direct engagement with U.S. government representatives provided valuable clarity on regulatory expectations and negotiation practices. The overarching message was clear: for Nordic companies aiming to do business with the U.S. Department of Defense, proficiency in FAR and DFARS is not optional – it is essential.
See you all next year, for the tenth anniversary! Stay compliant.
