48 CFR § 237.7401 - 237.7401 Policy.

---
identifier: "/us/cfr/t48/s237.7401"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 237.7401 - 237.7401   Policy."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "237.7401"
section_name: "237.7401   Policy."
chapter_number: 2
chapter_name: "DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE"
subchapter_number: "F"
subchapter_name: "SPECIAL CATEGORIES OF CONTRACTING"
part_number: "237"
part_name: "SERVICE CONTRACTING"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1303 and 48 CFR chapter 1."
regulatory_source: "56 FR 36424, July 31, 1991, unless otherwise noted."
cfr_part: "237"
---


# 237.7401 237.7401   Policy.

The authority in 206.302-5(b)(ii) to contract with local governments—

(a) May be exercised without regard to the provisions of 10 U.S.C. Chapter 146, Contracting for Performance of Civilian Commercial or Industrial Type Functions;

(b) May not be exercised earlier than 180 days before the date the installation is scheduled to be closed;

(c) Requires a determination by the head of the contracting activity that the services being acquired under contract with the local government are in the best interests of the Department of Defense.

[59 FR 36089, July 15, 1994, as amended at 60 FR 29500, June 5, 1995; 83 FR 24894, May 30, 2018]