Federal Acquisition Regulation (FAR)

How It Works

The Federal Acquisition Regulation (FAR) is the primary regulatory framework for federal procurement, codified at Title 48 of the Code of Federal Regulations, Chapter 1. It runs approximately 2,000 pages in 53 subject-matter parts covering every phase of the acquisition lifecycle: acquisition planning (Parts 7-13), publicizing and competition (Parts 5-6), contractor qualifications (Part 9 including debarment and suspension), contract types (Part 16), small business programs (Part 19), cost principles (Part 31), contract administration (Parts 42-43), and closeout (Part 4). The FAR was consolidated in 1984 from three separate agency regulations (DoD, NASA, and civilian agencies) and is jointly maintained by the FAR Council, which includes DoD, GSA, and NASA representatives with OMB oversight. Changes are published as Federal Acquisition Circulars (FACs). Individual agencies supplement the FAR with their own regulations: the Defense FAR Supplement (DFARS) for DoD, the GSA Acquisition Regulation (GSAR) for GSA, the VA Acquisition Regulation (VAAR) for VA, and so on. Agency supplements can add requirements but cannot override the base FAR. The FAR is the legal foundation for competition requirements (Part 6 implements CICA), small business set-asides (Part 19 implements the Small Business Act), cost accounting standards (Part 30 implements CAS), and dozens of socioeconomic programs (Buy American, Service Contract Act, Davis-Bacon, equal employment opportunity). Every federal contract above the micro-purchase threshold incorporates FAR clauses by reference, making FAR literacy essential for anyone selling to the federal government. Commercial item contracts under FAR Part 12 use a streamlined set of clauses (FAR 52.212-4 and 52.212-5) that limit the full regulatory burden to essential terms, while non-commercial contracts incorporate dozens of clauses covering labor standards, equal employment, reporting requirements, and dispute resolution. The Defense Contract Audit Agency (DCAA) and agency OIGs enforce cost-based FAR provisions, while the SBA enforces the small business socioeconomic clauses.

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.
• Simplified Acquisition Threshold (SAT), The statutory dollar threshold ($250,000 for most agencies) below which federal agencies can use streamlined acquisition procedures rather than full formal procurement.