Defense Pricing and Contracting (DPC)

Definition

Defense Pricing and Contracting (DPC), formerly DPAP (Defense Procurement and Acquisition Policy), is the DoW organization within OUSD(A&S) responsible for acquisition policy, DFARS rulemaking, class deviations, Defense Contract Pricing policy, and oversight of contracting across the department. DPC issues memoranda interpreting DFARS, authorizes class deviations during crises, and publishes DoW-wide guidance on emerging issues like CMMC, supply chain risk, and commercial item determinations.

Why It Matters

DPC memoranda often reach contractors before the corresponding DFARS rule changes. Tracking DPC actions — class deviations, pricing memos, commercial-item guidance — gives competitive intelligence on where DoW contracting is headed. During crises (COVID, CR-driven workarounds), DPC class deviations are the first signal of which flexibilities are available to contracting officers.

Example

A DPC memo issues a class deviation permitting advance payments on COVID-impacted contracts. A contractor's CFO flags the memo, the program office applies for an advance-payment modification, and the company receives $2.5M within five weeks, preserving cash through a supplier disruption.

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