Content of PROC Article I.

(a) Requirement. A DoD Component's general terms and conditions must address requirements for States' procurement systems. (b) Award terms and conditions —(1) General. Except as provided in paragraph (b)(2) of this section, a DoD Component's general terms and conditions must use the wording appendix A to this part provides for PROC Article I. (2) Exception. A DoD Component's general terms and conditions may instead reserve PROC Article I if the DoD Component determines that it is not possible that any States will receive: (i) DoD Component awards using those general terms and conditions; or (ii) Subawards from recipients of DoD Component awards using those general terms and conditions.