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DoD is amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement section 815(f) of the National Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-92), which repeals and replaces the 10 U.S.C. 2371 note with 10 U.S.C. 2371b. This rule will amend the criteria to award a follow-on production contract without competition at DFARS subpart 206 to: (1) no longer require the quantities and prices for the follow-on contract to be equal to or less than those established in the transaction agreement; (2) require the follow-on contract be awarded to a participant in the transaction for the prototype project; and, (3) update a citation to the conditions in 10 U.S.C. 2371b that must be satisfied and documented in order to except the contract from competition.