Federal Acquisition Regulation (FAR)
The comprehensive rule book governing how federal agencies buy goods and services — covering everything from how to write a solicitation to when to use competitive bidding.
How It Works
The FAR is the bible of federal procurement. It fills thousands of pages and covers every aspect of the acquisition process: planning, solicitation, evaluation, negotiation, award, administration, and closeout. Individual agencies supplement the FAR with their own regulations (DFARS for Defense, GSARS for GSA, etc.). The FAR requires agencies to promote competition, obtain fair and reasonable prices, and comply with socioeconomic programs like small business set-asides. Understanding the FAR is essential for anyone who sells to the federal government.
Related Terms
- Contracting Officer (CO) — The government official with legal authority to enter into, administer, and terminate federal contracts — the only person who can obligate the government.
- Competitive Bidding (Full and Open Competition) — The standard procurement process where the government publicly solicits proposals from multiple vendors and selects the best offer based on price, quality, and capability.
- Federal Contract — A legally binding agreement between the U.S. government and a private company to provide goods or services — from fighter jets to IT consulting.
Explore Federal Spending
About This Definition
This definition is part of the TaxDollarData Federal Spending Glossary — 31 terms explaining how the U.S. government spends taxpayer money. All definitions are written in plain language for taxpayers, journalists, contractors, and researchers.