DoD / DARS·Sourcing restrictions
Back to DLA Watch

DFARS domestic content rises to 75 percent in 2029

DFARS 225.101(a) sets a two-part test for whether a manufactured end product is a domestic end product. The first part is that "the end product is manufactured in the United States." The second part, for an end product that does not consist wholly or predominantly of iron or steel, is that "the cost of its U.S. and qualifying country components exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029, but see paragraph (d) of this section. This test is applied to end products only and not to individual components." For an end product wholly or predominantly of iron or steel, the second part is instead that iron and steel not produced in the United States or a qualifying country "must constitute less than 5 percent of the cost of all the components." The source was accessed on 2026-10-21.

Key dateJanuary 1, 2029effective
StatusFinal
ConfidenceConfirmed

What changed

DFARS 225.101(a) sets a two-part test for whether a manufactured end product is a domestic end product. The first part is that "the end product is manufactured in the United States." The second part, for an end product that does not consist wholly or predominantly of iron or steel, is that "the cost of its U.S. and qualifying country components exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029, but see paragraph (d) of this section. This test is applied to end products only and not to individual components." For an end product wholly or predominantly of iron or steel, the second part is instead that iron and steel not produced in the United States or a qualifying country "must constitute less than 5 percent of the cost of all the components." The source was accessed on 2026-10-21.

What it means for a DIBBS supplier

DIBBSFlow's reading

DIBBSFlow's reading, from the source above, checked 2026-10-21.

the component-cost percentage is keyed to the calendar year of delivery, and the section itself qualifies it with "but see paragraph (d)," which is not reproduced here. An item that meets today's component-cost test may fail the higher threshold in 2029 without a sourcing change. If you quote under terms that use this definition, know your component cost split by origin and whether the end product is manufactured in the United States.

Source:DFARS 225.101 General, acquisition.gov (opened 2026-10-21)· Confirmed onOctober 21, 2026

Change log

  • 2026-10-21: added to the watch; source opened 2026-10-21.
  • 2026-10-21: held, Codex returned FIX; gate run 2026-10-21.
  • 2026-10-21: capture extended to every passage the item rests on and body rewritten to the capture; status restored from Held.
  • 2026-10-21: title shortened to a plain headline (Tony's review of the live cards); facts that left the title stay in What changed.

A public log of rule and deadline changes. DIBBSFlow alerts on your NSNs and CAGEs are a separate product.

<script type="application/ld+json">{"@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{"@type": "Question", "name": "What changed?", "acceptedAnswer": {"@type": "Answer", "text": "DFARS 225.101(a) sets a two-part test for whether a manufactured end product is a domestic end product. The first part is that \"the end product is manufactured in the United States.\" The second part, for an end product that does not consist wholly or predominantly of iron or steel, is that \"the cost of its U.S. and qualifying country components exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029, but see paragraph (d) of this section. This test is applied to end products only and not to individual components.\" For an end product wholly or predominantly of iron or steel, the second part is instead that iron and steel not produced in the United States or a qualifying country \"must constitute less than 5 percent of the cost of all the components.\" The source was accessed on 2026-10-21."}}, {"@type": "Question", "name": "What should a DIBBS supplier check?", "acceptedAnswer": {"@type": "Answer", "text": "DIBBSFlow's reading, from the source above, checked 2026-10-21. the component-cost percentage is keyed to the calendar year of delivery, and the section itself qualifies it with \"but see paragraph (d),\" which is not reproduced here. An item that meets today's component-cost test may fail the higher threshold in 2029 without a sourcing change. If you quote under terms that use this definition, know your component cost split by origin and whether the end product is manufactured in the United States."}}]}</script>