The Department of Defense has proposed changes to the Defense Federal Acquisition Regulation Supplement to restrict the government from procuring more than one low-rate initial production lot, or LRIP, related to a major defense acquisition program under certain conditions.
The proposed rule intends to implement section 808 of the fiscal year 2023 National Defense Authorization Act, according to a Federal Register notice published Friday.
Contracting officers should not procure more than one LRIP lot “when the milestone decision authority authorizes the use of a fixed-price type contract at the time of Milestone B approval and the scope of the fixed-price contract includes both development and low-rate initial production,” the notice reads.
The service acquisition executive may waive the limitation if a waiver’s written notification is handed to the congressional defense panels no later than 30 days and the contract file contains the congressional notification and a copy of the waiver.
Comments on the proposed rule are due Nov. 28.
