The Federal Acquisition Regulations System is established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies. The Federal Acquisition Regulations System consists of the Federal Acquisition Regulation (FAR), which is the primary document, and agency acquisition regulations that implement or supplement the FAR. The FAR System does not include internal agency guidance of the type described in 1.301(a)(2).
1.102 Statement of guiding principles for the Federal Acquisition System.
(a) The vision for the Federal Acquisition System is to deliver on a timely basis the best value product or service to the customer, while maintaining the public’s trust and fulfilling public policy objectives. Participants in the acquisition process should work together as a team and should be empowered to make decisions within their area of responsibility.
(b) The Federal Acquisition System will-
(1) Satisfy the customer in terms of cost, quality, and timeliness of the delivered product or service by, for example-
(i) Maximizing the use of commercial products and commercial services;
(ii) Using contractors who have a track record of successful past performance or who demonstrate a current superior ability to perform; and
(iii) Promoting competition;
(2) Minimize administrative operating costs;
(3) Conduct business with integrity, fairness, and openness; and
(4) Fulfill public policy objectives.
(c) The Acquisition Team consists of all participants in Government acquisition including not only representatives of the technical, supply, and procurement communities but also the customers they serve, and the contractors who provide the products and services.
(d) The role of each member of the Acquisition Team is to exercise personal initiative and sound business judgment in providing the best value product or service to meet the customer’s needs. In exercising initiative, Government members of the Acquisition Team may assume if a specific strategy, practice, policy or procedure is in the best interests of the Government and is not addressed in the FAR, nor prohibited by law (statute or case law), Executive order or other regulation, that the strategy, practice, policy or procedure is a permissible exercise of authority.
(a) Introduction. The statement of Guiding Principles for the Federal Acquisition System (System) represents a concise statement designed to be user-friendly for all participants in Government acquisition. The following discussion of the principles is provided in order to illuminate the meaning of the terms and phrases used. The framework for the System includes the Guiding Principles for the System and the supporting policies and procedures in the FAR.
(b) Vision. All participants in the System are responsible for making acquisition decisions that deliver the best value product or service to the customer. Best value must be viewed from a broad perspective and is achieved by balancing the many competing interests in the System. The result is a system which works better and costs less.
1.102-2 Performance standards.
(a) Satisfy the customer in terms of cost, quality, and timeliness of the delivered product or service.
(1) The principal customers for the product or service provided by the System are the users and line managers, acting on behalf of the American taxpayer.
(2) The System must be responsive and adaptive to customer needs, concerns, and feedback. Implementation of acquisition policies and procedures, as well as consideration of timeliness, quality, and cost throughout the process, must take into account the perspective of the user of the product or service.
(3) When selecting contractors to provide products or perform services, the Government will use contractors who have a track record of successful past performance or who demonstrate a current superior ability to perform.
(4) The Government must not hesitate to communicate with industry as early as possible in the acquisition cycle to help the Government determine the capabilities available in the marketplace. Government acquisition personnel are permitted and encouraged to engage in responsible and constructive exchanges with industry ( e.g., see 10.002 and 10.002), so long as those exchanges are consistent with existing laws and regulations, and do not promote an unfair competitive advantage to particular firms.
(5) The Government will maximize its use of commercial products and commercial services in meeting Government requirements.
(6) It is the policy of the System to promote competition in the acquisition process.
(7) The System must perform in a timely, high quality, and cost-effective manner.
(8) All members of the Team are required to employ planning as an integral part of the overall process of acquiring products or services. Although advance planning is required, each member of the Team must be flexible in order to accommodate changing or unforeseen mission needs. Planning is a tool for the accomplishment of tasks, and application of its discipline should be commensurate with the size and nature of a given task.
(b) Minimize administrative operating costs.
(1) In order to ensure that maximum efficiency is obtained, rules, regulations, and policies should be promulgated only when their benefits clearly exceed the costs of their development, implementation, administration, and enforcement. This applies to internal administrative processes, including reviews, and to rules and procedures applied to the contractor community.
(2) The System must provide uniformity where it contributes to efficiency or where fairness or predictability is essential. The System should also, however, encourage innovation, and local adaptation where uniformity is not essential.
(c) Conduct business with integrity, fairness, and openness.
(1) An essential consideration in every aspect of the System is maintaining the public’s trust. Not only must the System have integrity, but the actions of each member of the Team must reflect integrity, fairness, and openness. The foundation of integrity within the System is a competent, experienced, and well-trained, professional workforce. Accordingly, each member of the Team is responsible and accountable for the wise use of public resources as well as acting in a manner which maintains the public’s trust. Fairness and openness require open communication among team members, internal and external customers, and the public.
(2) To achieve efficient operations, the System must shift its focus from "risk avoidance" to one of "risk management." The cost to the taxpayer of attempting to eliminate all risk is prohibitive. The Executive Branch will accept and manage the risk associated with empowering local procurement officials to take independent action based on their professional judgment.
(3) The Government shall exercise discretion, use sound business judgment, and comply with applicable laws and regulations in dealing with contractors and prospective contractors. All contractors and prospective contractors shall be treated fairly and impartially but need not be treated the same.
(d) Fulfill public policy objectives. The System must support the attainment of public policy goals adopted by the Congress and the President. In attaining these goals, and in its overall operations, the process shall ensure the efficient use of public resources.
1.102-3 Acquisition Team.
The purpose of defining the Federal Acquisition Team (Team) in the Guiding Principles is to ensure that participants in the System are identified beginning with the customer and ending with the contractor of the product or service. By identifying the team members in this manner, teamwork, unity of purpose, and open communication among the members of the Team in sharing the vision and achieving the goal of the System are encouraged. Individual team members will participate in the acquisition process at the appropriate time.
1.102-4 Role of the Acquisition Team.
(a) Government members of the Team must be empowered to make acquisition decisions within their areas of responsibility, including selection, negotiation, and administration of contracts consistent with the Guiding Principles. In particular, the contracting officer must have the authority to the maximum extent practicable and consistent with law, to determine the application of rules, regulations, and policies, on a specific contract.
(b) The authority to make decisions and the accountability for the decisions made will be delegated to the lowest level within the System, consistent with law.
(c) The Team must be prepared to perform the functions and duties assigned. The Government is committed to provide training, professional development, and other resources necessary for maintaining and improving the knowledge, skills, and abilities for all Government participants on the Team, both with regard to their particular area of responsibility within the System, and their respective role as a team member. The contractor community is encouraged to do likewise.
(d) The System will foster cooperative relationships between the Government and its contractors consistent with its overriding responsibility to the taxpayers.
(e) The FAR outlines procurement policies and procedures that are used by members of the Acquisition Team. If a policy or procedure, or a particular strategy or practice, is in the best interest of the Government and is not specifically addressed in the FAR, nor prohibited by law (statute or case law), Executive order or other regulation, Government members of the Team should not assume it is prohibited. Rather, absence of direction should be interpreted as permitting the Team to innovate and use sound business judgment that is otherwise consistent with law and within the limits of their authority. Contracting officers should take the lead in encouraging business process innovations and ensuring that business decisions are sound.
(a) The development of the FAR System is in accordance with the requirements of 41 U.S.C. chapter 13, Acquisition Councils.
(b) The FAR is prepared, issued, and maintained, and the FAR System is prescribed jointly by the Secretary of Defense, the Administrator of General Services, and the Administrator, National Aeronautics and Space Administration, under their several statutory authorities.
The FAR applies to all acquisitions as defined in part 2 of the FAR, except where expressly excluded.
1.105-1 Publication and code arrangement.
(a) The FAR is published in—
(1) The daily issue of the Federal Register;
(2) Cumulated form in the Code of Federal Regulations (CFR); and
(3) A separate edition available at https://www.acquisition.gov/browse/index/far.
(b) The FAR is issued as Chapter 1 of Title 48, CFR. Subsequent chapters are reserved for agency acquisition regulations that implement or supplement the FAR (see subpart 1.3). The CFR Staff will assign chapter numbers to requesting agencies.
(c) Each numbered unit or segment (e.g., part, subpart, section, etc.) of an agency acquisition regulation that is codified in the CFR shall begin with the chapter number. However, the chapter number assigned to the FAR will not be included in the numbered units or segments of the FAR.
1.105-2 Arrangement of regulations.
(a) General. The FAR is divided into subchapters, parts (each of which covers a separate aspect of acquisition), subparts, sections, and subsections.
(1) The numbering system permits the discrete identification of every FAR paragraph. The digits to the left of the decimal point represent the part number. The numbers to the right of the decimal point and to the left of the dash represent, in order, the subpart (one or two digits), and the section (two digits). The number to the right of the dash represents the subsection. Subdivisions may be used at the section and subsection level to identify individual paragraphs. The following example illustrates the make-up of a FAR number citation (note that subchapters are not used with citations):
(2) Subdivisions below the section or subsection level consist of parenthetical alpha numerics using the following sequence:
(c) References and citations.
(1) Unless otherwise stated, cross-references indicate parts, subparts, sections, subsections, paragraphs, subparagraphs, or subdivisions of this regulation.
(2) This regulation may be referred to as the Federal Acquisition Regulation or the FAR.
(3) Using the FAR coverage at 9.106-4(d) as a typical illustration, reference to the–
(i) Part would be "FAR part 9" outside the FAR and "part 9" within the FAR.
(ii) Subpart would be "FAR subpart 9.1" outside the FAR and "subpart 9.1" within the FAR.
(iii) Section would be "FAR 9.106" outside the FAR and "9.106" within the FAR.
(iv) Subsection would be "FAR 9.106-4" outside the FAR and "9.106-4" within the FAR.
(v) Paragraph would be "FAR 9.106-4(d)" outside the FAR and "9.106-4(d)" within the FAR.
(4) Citations of authority (e.g., statutes or Executive orders) in the FAR shall follow the Federal Register form guides.
Copies of the FAR in CFR form may be purchased from the Bookstore of the Government Publishing Office (GPO), Washington, DC 20402.
In accordance with 41 U.S.C. 1304, a new requirement for a certification by a contractor or offeror may not be included in this chapter unless-
(a) The certification requirement is specifically imposed by statute; or
(b) Written justification for such certification is provided to the Administrator for Federal Procurement Policy by the Federal Acquisition Regulatory Council, and the Administrator approves in writing the inclusion of such certification requirement.
1.108 FAR conventions.
The following conventions provide guidance for interpreting the FAR:
(a) Words and terms. Definitions in part 2 apply to the entire regulation unless specifically defined in another part, subpart, section, provision, or clause. Words or terms defined in a specific part, subpart, section, provision, or clause have that meaning when used in that part, subpart, section, provision, or clause. Undefined words retain their common dictionary meaning.
(b) Delegation of authority. Each authority is delegable unless specifically stated otherwise (see 1.102-4(b)).
(c) Dollar thresholds. Unless otherwise specified, a specific dollar threshold for the purpose of applicability is the final anticipated dollar value of the action, including the dollar value of all options. If the action establishes a maximum quantity of supplies or services to be acquired or establishes a ceiling price or establishes the final price to be based on future events, the final anticipated dollar value must be the highest final priced alternative to the Government, including the dollar value of all options.
(d) Application of FAR changes to solicitations and contracts. Unless otherwise specified-
(1) FAR changes apply to solicitations issued on or after the effective date of the change;
(2) Contracting officers may, at their discretion, include the FAR changes in solicitations issued before the effective date, provided award of the resulting contract(s) occurs on or after the effective date; and
(3) Contracting officers may, at their discretion, include the changes in any existing contract with appropriate consideration.
(e) Citations. When the FAR cites a statute, Executive order, Office of Management and Budget circular, Office of Federal Procurement Policy policy letter, or relevant portion of the Code of Federal Regulations, the citation includes all applicable amendments, unless otherwise stated.
(f) Imperative sentences. When an imperative sentence directs action, the contracting officer is responsible for the action, unless another party is expressly cited.
1.109 Statutory acquisition–related dollar thresholds-adjustment for inflation.
(a) 41 U.S.C. 1908 requires that the FAR Council periodically adjust all statutory acquisition-related dollar thresholds in the FAR for inflation, except as provided in paragraph (c) of this section. This adjustment is calculated every 5 years, starting in October 2005, using the Consumer Price Index for All Urban Consumers (CPI-U), and supersedes the applicability of any other provision of law that provides for the adjustment of such acquisition-related dollar thresholds.
(b) The statute defines an acquisition-related dollar threshold as a dollar threshold that is specified in law as a factor in defining the scope of the applicability of a policy, procedure, requirement, or restriction provided in that law to the procurement of supplies or services by an executive agency, as determined by the FAR Council.
(c) The statute does not permit escalation of acquisition-related dollar thresholds established by:
(1) 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction);
(2) 41 U.S.C. chapter 67, Service Contract Labor Standards; or
(3) The United States Trade Representative pursuant to the authority of the Trade Agreements Act of 1979 ( 19 U.S.C. 2511 et seq.).
(d) The statute, as amended by section 821 of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 115-91), requires the adjustment described in paragraph (a) of this section be applied to contracts and subcontracts without regard to the date of award of the contract or subcontract. Therefore, if a threshold is adjusted for inflation as set forth in paragraph (a) of this section, then the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment.
(e) A matrix showing calculation of the most recent escalation adjustments of statutory acquisition-related dollar thresholds is available via the Internet at http://www.regulations.gov (search FAR Case 2019-013, open the docket folder, and go to the supporting documents file).
1.110 Positive law codification.
(a) PublicLaw 107-217 revised, codified, and enacted as title 40, United StatesCode, Public Buildings, Property, and Works, certain general andpermanent laws of the United States.
(b) Public Law111-350 revised, codified, and enacted as title 41, United StatesCode, Public Contracts, certain general and permanent laws of theUnited States.
(c) The followingtable provides cross references between the historical titles ofthe acts, and the current reference in title 40 or title 41.
|HistoricalTitle of Act||Division/Chapter/ Subchapter||Title|
|BrooksArchitect Engineer Act|| |
Selection of Architectsand Engineers
|BuyAmerican Act|| |
|ContractDisputes Act of 1978|| |
|ContractWork Hours and Safety Standards Act|| |
Contract Work Hoursand Safety Standards
Wage Rate Requirements(Construction)
|Drug-FreeWorkplace Act|| |
|FederalProperty and Administrative Services Act of 1949, Title III.|| |
Committee for Purchasefrom People Who Are Blind or Severely Disabled
|Officeof Federal Procurement Policy Act|| |
Office of Federal ProcurementPolicy
|ProcurementIntegrity Act|| |
Restrictions on Obtainingand Disclosing Certain Information
|ServiceContract Act of 1965|| |
Service Contract LaborStandards
|Truthin Negotiations Act|| |
Truthful Cost or PricingData
|Walsh-HealeyPublic Contracts Act|| |
Contracts for Materials, Supplies,Articles, and Equipment Exceeding $10,000.
* Except sections 3302, 3501(b), 3509, 3906, 4710, and 4711.
** Except sections 1704 and 2303.
This part sets forth basic policies and general information about the Federal Acquisition Regulations System including purpose, authority, applicability, issuance, arrangement, numbering, dissemination, implementation, supplementation, maintenance, administration, and deviation.What is the primary purpose of federal acquisition regulation system? ›
The Federal Acquisition Regulations System is established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies.What does Federal Acquisition Regulation FAR 45.3 provide for? ›
This subpart prescribes policies and procedures for contractor use and rental of Government property. (a) Government property shall normally be provided on a rent-free basis in performance of the contract under which it is accountable or otherwise authorized.Are CFR and FAR the same? ›
The Federal Acquisition Regulation (FAR) is the principal set of rules regarding Government procurement in the United States, and is codified at Chapter 1 of Title 48 of the Code of Federal Regulations, 48 CFR 1.How do you read FAR parts? ›
The digits to the left of the decimal point represent the part number. The numbers to the right of the decimal point and to the left of the dash represent, in order, the subpart (one or two digits), and the section (two digits). The number to the right of the dash represents the subsection.How do you write FAR parts? ›
(i) Part would be "FAR part 9" outside the FAR and "part 9" within the FAR. (ii) Subpart would be "FAR subpart 9.1" outside the FAR and "subpart 9.1" within the FAR. (iii) Section would be "FAR 9.106" outside the FAR and "9.106" within the FAR.What do I need to know about Federal Acquisition Regulation? ›
The Federal Acquisition Regulation (FAR) is the primary regulation for use by all executive agencies in their acquisition of supplies and services with appropriated funds. The FAR also contains standard solicitation provisions and contract clauses and the various agency FAR supplements.What is the federal acquisition process? ›
The acquisition process is typically divided into four phases: pre-solicitation, solicitation and evaluation, award, and contract administration. The pre-solicitation phase lays the groundwork for soliciting offers and awarding a contract.What is a federal acquisition strategy? ›
Intellectual Property Considerations
The acquisition strategy describes the FSM's plan to achieve the execution of goals set within the service acquisition life cycle. The MFT summarizes the overall approach to acquiring services (to include the schedule, structure, risks, funding, and business strategy).
Simplified Acquisition Thresholds (SAT)
The Simplified Acquisition Threshold (SAT) (FAR 2.101) is $250,000.
Established the definition at 13.101: Simplified acquisition threshold means $100,000 (but see 13.103(b)). In the case of any contract to be awarded and performed, or purchase to be made, outside the United States in support of a contingency operation, the term means $200,000.What is the Federal Acquisition Regulation representation 52.204 24? ›
52.204-24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment. Acquisition.GOV.Who writes the CFR? ›
The volumes of the CFR are jointly produced by the National Archives and Records Administration's (NARA) Office of the Federal Register (OFR), and the Government Publishing Office (GPO) to provide the public with access to authentic government information.What agencies do not follow the FAR? ›
The FAR does not apply to legislative branch agencies or judicial branch agencies, although agencies in the other branches of government (or otherwise not subject to the FAR) may adopt the FAR as a matter of policy, or promulgate or otherwise be subject to requirements like those in the FAR.How many parts are there in CFR? ›
The CFR is split into 50 titles that address extensive areas subject to federal regulations. The change of color of each set of volumes takes place every year. Each title is separated into chapters, which as a rule bear the name of the issuing agency.What are FAR codes? ›
To assist in providing policy-relevant information about conditions in sparsely-settled, remote areas of the U.S. to public officials, researchers, and the general public, ERS has developed ZIP-code-level frontier and remote area (FAR) codes.How many clauses are in the FAR? ›
The rule and the clause usually contain flowdown instructions, if any. There are currently 896 FAR clauses. The FAR Council has provided a matrix table of all of the clauses (FAR 52.301-1), and the types of contracts that should include them.How many parts is FAR? ›
The Federal Acquisition Regulations (FAR) are divided into 53 parts and organized into eight (8) Subchapters designated A through H. Each part is then divided into subparts, sections, and subsections, with further divisions below the subsection level.What is FAR example? ›
Adverb The dog wandered far from home. These new discoveries will allow us to see far into the past. She lives far out in the country.How do you use FAR correctly? ›
You use the expression by far when you are comparing something or someone with others of the same kind, in order to emphasize how great the difference is between them. For example, you can say that something is by far the best or the best by far to indicate that it is definitely the best.
Federal government contracts are commonly divided into two main types, fixed-price and cost-reimbursement. Other contract types include incentive contracts, time-and-materials, labor-hour contracts, indefinite-delivery contracts, and letter contracts.What are Dfars requirements? ›
The DFARS contains requirements of law, DoD-wide policies, delegations of FAR authorities, deviations from FAR requirements, and policies/procedures that have a significant effect on the public. The DFARS should be read in conjunction with the primary set of rules in the FAR.When was the Federal Acquisition Regulation established? ›
It became effective on April 1, 1984, and is issued within applicable laws under the joint authorities of the Administrator of General Services, the Secretary of Defense, and the Administrator for the National Aeronautics and Space Administration, under the broad policy guidelines of the Administrator, Office of ...What is the first step in the acquisition planning process? ›
The acquisition process starts with the determination of the need. Planning the acquisition includes preparation of documentation to support the determined need, and all required approvals. Market research is conducted. Acquisition method is determined.How big is the Federal Acquisition Regulation? ›
The Federal Acquisition Regulation (“FAR”) is found in Title 48 of the Code of Federal Regulations. It consists of 37 Chapters (Chapter 1, some 2,000+ pages, which applies to all agencies, and then various agency supplements plus the Cost Accounting Standards).What are the 3 processes in acquisition? ›
The Department of Defense (DoD) Acquisition Process is one of three (3) processes (Acquisition, Requirements, and Funding) that make up and support the Defense Acquisition System and is implemented by DoD Instruction 5000.02 “Operation of the Adaptive Acquisition Framework” and DoD Instruction 5000.85 “Major Capability ...What are the four types of acquisitions? ›
There are four main types of acquisitions based on the relationship between the buyer and seller: horizontal, vertical, conglomerate, and congeneric.What is the difference between FAR Part 121 and 135? ›
Part 121 is scheduled air carrier (airliners). Part 133 is external load (helicopter) operations. Part 135 is a set of rules with more stringent standards for commuter and on-demand operations. Part 135 operator rules govern commercial aircraft.How many parts of the FAR are there? ›
The FAR is divided into 53 parts, organized into 8 Subchapters designated A through H. Each part is then divided into subparts, sections, and subsections, with further divisions below the subsection level.What does the FAR cover? ›
The Federal Acquisition Regulation (FAR) is the primary regulation for use by all executive agencies in their acquisition of supplies and services with appropriated funds. The FAR also contains standard solicitation provisions and contract clauses and the various agency FAR supplements.
§ 135.265 Flight time limitations and rest requirements: Scheduled operations. (1) 1,200 hours in any calendar year. (2) 120 hours in any calendar month. (3) 34 hours in any 7 consecutive days.Who does Part 121 apply to? ›
Air carriers authorized to operate under a Part 121 certificate are generally large, U.S.-based airlines, regional air carriers, and all cargo operators. All Part 121 air carriers are required to have an FAA-approved hazardous materials (aka dangerous goods) program.Does Part 121 require 2 pilots? ›
§ 121.481 Flight time limitations: One or two pilot crews.
(a) A certificate holder conducting flag operations may schedule a pilot to fly in an airplane that has a crew of one or two pilots for eight hours or less during any 24 consecutive hours without a rest period during these eight hours.
FAR requirements apply to how the government procures goods and services, contractor responsibilities and obligations and accounting and pricing considerations leading to DCAA or other government audits.Why was the FAR created? ›
The FAR was codified in Title 48 of the Code of Federal Regulations (CFR) in 1984 to create a uniform structure for many federal agencies. The FAR is issued and maintained jointly by the Secretary of Defense, Administrator of General Services and the Administrator, National Aeronautics and Space Administration.Is the FAR considered law? ›
The FAR is a regulation, codified in Parts 1 through 53 of Title 48 of the Code of Federal Regulations, which generally governs acquisitions of goods and services by executive branch agencies.Who is subject to the FAR? ›
What Agencies Are Subject to the FAR? executive department[s], ... military department[s], or any independent establishment[s] within the meaning of 5 U.S.C. 101, 102, and 104(1), respectively, and any wholly owned Government corporation within the meaning of 31 U.S.C.What does best value mean in the FAR? ›
FAR 2.101 Definitions: “Best value” means the expected outcome of an acquisition that, in the Government's estimation, provides the greatest overall benefit in response to the requirement.”