Federal Acquisition Regulations
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The Federal Acquisition Regulations (usually referred to as the FAR or F.A.R.), are a series of regulations issued by the Federal government of the United States that concern the requirements of contractors for selling to the government, the terms under which the government obtains ownership, title and control of the goods or services purchased, and rules on specifications, payments and conduct and actions regarding solicitation of bids and payment of invoices.
The FAR is codified in Title 48 of the United States Code of Federal Regulations. It is issued pursuant to the Office of Federal Procurement Policy Act of 1974 (Pub. L. 93-400 and Title 41 of the United States Code). It is prepared, issued, and maintained jointly by the Secretary of Defense, the Administrator of General Services, and the Administrator, National Aeronautics and Space Administration (48 CFR 1.103).
Nearly all government agencies are required to use FAR. However, some agencies are exempt from its use; an example is the United States Postal Service which issues its own Purchasing Manual.
Contents |
[edit] FAR Structure
The FAR is divided into 53 parts, organized into eight Subchapters numbered A through H. Each part is then divided into subparts, sections, and subsections, with further divisions below the subsection level.
When a FAR clause is referenced, the subchapters and subparts are ignored. As an example, the regulations regarding lobbying costs is FAR Part 31, Section 205, subsection 22 (referenced as FAR 31-205.22).
The subchapters and parts are briefly referenced below:
- Subchapter A--General
- Part 1--Federal Acquisition Regulations System
- Part 2--Definitions of Words and Terms
- Part 3--Improper Business Practices and Personal Conflicts of Interest
- Part 4--Administrative Matters
- Subchapter B--Competition and Acquisition Planning
- Part 5--Publicizing Contract Actions
- Part 6--Competition Requirements
- Part 7--Acquisition Planning
- Part 8--Required Sources of Supplies and Services
- Part 9--Contractor Qualifications
- Part 10--Market Research
- Part 11--Describing Agency Needs
- Part 12--Acquisition of Commercial Items
- Subchapter C--Contracting Methods and Contract Types
- Part 13--Simplified Acquisition Procedures
- Part 14--Sealed Bidding
- Part 15--Contracting by Negotiation
- Part 16--Types of Contracts
- Part 17--Special Contracting Methods
- Part 18--Emergency Acquisitions
- Subchapter D--Socioeconomic Programs
- Part 19--Small Business Programs
- Part 20--[RESERVED, not currently in use]
- Part 21--[RESERVED, not currently in use]
- Part 22--Application of Labor Laws to Government Acquisitions
- Part 23--Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace
- Part 24--Protection of Privacy and Freedom of Information
- Part 25--Foreign Acquisition
- Part 26--Other Socioeconomic Programs
- Subchapter E--General Contracting Requirements
- Part 27--Patents, Data, and Copyrights
- Part 28--Bonds and Insurance
- Part 29--Taxes
- Part 30--Cost Accounting Standards Administration
- Part 31--Contract Cost Principles and Procedures
- Part 32--Contract Financing
- Part 33--Protests, Disputes, and Appeals
- Subchapter F--Special Categories of Contracting
- Part 34--Major System Acquisition
- Part 35--Research and Development Contracting
- Part 36--Construction and Architect-Engineer Contracts
- Part 37--Service Contracting
- Part 38--Federal Supply Schedule Contracting
- Part 39--Acquisition of Information Technology
- Part 40--[RESERVED, not currently in use]
- Part 41--Acquisition of Utility Services
- Subchapter G--Contract Management
- Part 42--Contract Administration and Audit Services
- Part 43--Contract Modifications
- Part 44--Subcontracting Policies and Procedures
- Part 45--Government Property
- Part 46--Quality Assurance
- Part 47--Transportation
- Part 48--Value Engineering
- Part 49--Termination of Contracts
- Part 50--Extraordinary Contractual Actions
- Part 51--Use of Government Sources by Contractors
- Subchapter H--Clauses and Forms
- Part 52--Solicitation Provisions and Contract Clauses
- Part 53--Forms
[edit] FAR Supplements
As the original purpose of FAR was to consolidate the numerous individual agency regulations into one comprehensive set of standards which would apply government-wide, officially individual agencies are discouraged from issuing supplemental regulations. However, nearly every major cabinet-level department (and many agencies below them) have issued such regulations, which often place further restrictions or requirements on contractors.
One of the best-known examples of an agency supplement is the Defense Federal Acquisition Regulation Supplement (or DFARS), which is used by the Department of Defense.
The most common format for agency FAR supplements is to follow the basic FAR format. To continue the example above, the companion DFARS section on lobbying costs is DFARS Subpart 231, Section 205, Subsection 22 (referenced as DFARS 231.205-22).
[edit] Purpose of FAR
The purpose of the FAR is to specify exactly how the government is to acquire a particular product or service, how it is to be judged in terms of quality and price, and to ensure the government does not pay for certain prohibited practices (such as the costs of lobbying), and to prevent kickbacks, undue influence, corruption and other misconduct.
The FAR also includes socioeconomic requirements, such as for certain items to be required to be purchased from United States firms only and for large organizations to use smaller businesses (specifically small disadvantaged businesses, those being woman-owned and/or minority-owned) as subcontractors.
When a government agency issues a contract or a proposal, it will specify a list of FAR provisions that apply to that contract, which may be numerous. In order to be awarded a contract, a bidder must either comply with the provisions, demonstrate that it will be able to comply with them at the time of award, and/or claim an exemption from them. As an example, Part 30 (which references Cost Accounting Standards) allows for small businesses to be exempt from those requirements; if the bidder can demonstrate that it meets the small business criteria, Part 30 would then not apply.
In many cases, a contract award can be challenged and set aside if a challenger can prove that either the contracting agency and/or the successful bidder did not comply with the contract solicitation requirements, usually so that the challenger can either be awarded the contract in lieu of the original bidder's award of the contract or get another shot at a bid.
[edit] Criticisms
Many have suggested that the complexity of complying with the FAR discourages competition, especially by small companies.
