Government contracts are subject to a wide range of regulations that govern acquisitions by executive branch agencies. The most significant of these is the Federal Acquisition Regulation (FAR) found in Parts 1 through 53 of Title 48, Chapter 1 of the Code of Federal Regulations. Its preparation, provision, and management is the joint responsibility of the Defense Secretary, the General Services Administrator (GSA), and the National Aeronautics and Space Administration (NASA), subject to approval by the Federal Procurement Policy Administrator. All three agencies, consulting with the FAR Council, propose amendments together.
The FAR controls many facets of executive procurement. For example, socio-economic policy, competitiveness criteria, exceptions to specific policies, and contractual provisions to include in government contracts. Much of the FAR focuses on laws such as the Competition in Contracting Act or the Contract Disputes Act.
What is Federal Acquisition Regulation (“FAR”)?
Federal Acquisition Regulation (FAR) is a set of principles governing the procurement process of the government. However, this controls the government’s purchase of goods and services. It doesn’t control private sector practices, except to the degree that government requests and contracts reference it.
Almost all government agencies must comply with FAR, but there are some exceptions. For instance, several entities like the US Postal Services, Tennessee Valley Authority, and Federal Aviation Administration enact their own strict procurement rules. FAR provisions are subject to interpretation by entities such as the Federal courts, the Armed Services Board of Contract Appeals and the General Services Board of Contract.
Purpose
The FAR System is set up to codify and release standard acquisition policies for all executive agencies. Furthermore, it consists of the main text, FAR, and the FAR incorporating or supplementing agency acquisition regulations. The FAR framework does not include the guidance of the internal agency of the sort mentioned in 1.301(a)(2).
This blog was written by Linda Rawson, who is the founder of DynaGrace Enterprises (dynagrace.com) and the inventor of WeatherEgg (weatheregg.com). She, along with her daughter, Jennifer Remund make up the mother-daughter duo of 2BizChicks (2Bizchicks.com). For further information, please connect with Linda on LinkedIn, or contact her at (800) 676-0058 ext 101.
Please reach out to us at GovCon-Biz should you have any questions.
