FAR Part 2
Definitions of Words and Terms
FAR 2.000 Scope of part
(a) This part –
(1) Defines words and terms that are frequently used in the
FAR;
(2) Provides cross-references to other definitions in the FAR
of the same word or term; and
(3) Provides for the incorporation of these definitions in
solicitations and contracts by reference.
(b) Other parts, subparts, and sections of this regulation
(48 CFR Chapter 1) may define other words or terms and
those definitions only apply to the part, subpart, or
section where the word or term is defined (see the Index
for locations).
Subpart 2.1—Definitions
2.101 Definitions
(a) A word or a term, defined in this section, has the same
meaning throughout this regulation, unless—
(1) The context in which the word or term is used clearly requires a
different meaning; or
(2) Another FAR part, subpart, or section provides a different
definition for the particular part or portion of the part.
(b) If a word or term that is defined in this section is defined
differently in another part, subpart, or section of this
regulation, the definition in—
(1) This section includes a cross-reference to the other definitions;
and
(2) That part, subpart, or section applies to the word or term when
used in that part, subpart, or section.
FAR 2.101 Definitions.
• “Acquisition” means the acquiring by contract with
appropriated funds of supplies or services (including
construction) by and for the use of the Federal Government
through purchase or lease, whether the supplies or services
are already in existence or must be created, developed,
demonstrated, and evaluated. Acquisition begins at the
point when agency needs are established and includes the
description of requirements to satisfy agency needs,
solicitation and selection of sources, award of contracts,
contract financing, contract performance, contract
administration, and those technical and management
functions directly related to the process of fulfilling agency
needs by contract.
FAR 2.101 Definitions.
• “Affiliates” means associated business
concerns or individuals if, directly or indirectly
– (1) Either one controls or can control the other; or
– (2) A third party controls or can control both.
• Note: Please visit the Small Business
Administration (SBA.gov) website for more
detailed information concerning afiliation.
FAR 2.101 Definitions.
• “Assignment of claims” means the transfer or
making over by the contractor to a bank, trust
company, or other financing institution, as
security for a loan to the contractor, of its right
to be paid by the Government for contract
performance.
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.
– Best Value implies a trade-off such that additional
value may be obtained albeit at increased cost.
FAR 2.101 Definitions.
• “Broad agency announcement” means a
general announcement of an agency’s
research interest including criteria for
selecting proposals and soliciting the
participation of all offerors capable of
satisfying the Government’s needs (see
6.102(d)(2)).
• The BAA is typically associated with R&D
contracts (see FAR Part 35)
FAR 2.101 Definitions.
• “Central Contractor Registration (CCR)
database” means the primary Government
repository for contractor information required
for the conduct of business with the
Government.
• The CCR database is now included in the
System for Award Management
(www.sam.gov) website.
FAR 2.101 Definitions.
• “Certified cost or pricing data” means “cost or
pricing data” that were required to be submitted
in accordance with FAR 15.403-4 and 15.403-5
and have been certified, or is required to be
certified, in accordance with 15.406-2. This
certification states that, to the best of the
person’s knowledge and belief, the cost or pricing
data are accurate, complete, and current as of a
date certain before contract award. Cost or
pricing data are required to be certified in certain
procurements (10 U.S.C. 2306a and
41 U.S.C. 254b).
FAR 2.101 Definitions.
• “Day” means, unless otherwise specified, a
calendar day.
FAR 2.101 Definitions.
• “Delivery order” means an order for supplies
placed against an established contract or with
Government sources.
• “Task order” means an order for services
placed against an established contract or with
Government sources.
• Delivery orders and task orders are most
appropriately associated with ID/IQ contracts.
FAR 2.101 Definitions.
• “Excluded Parties List System” means an electronic
database maintained and posted by the General
Services Administration containing the list of all parties
suspended, proposed for debarment, debarred,
declared ineligible, or excluded or disqualified under
the nonprocurement common rule by agencies,
Government corporations, or by the Government
Accountability Office.
• The EPL database is now hosted within the System for
Award Management (www.sam.gov) website
FAR 2.101 Definitions.
• “Full and open competition,” when used with
respect to a contract action, means that all
responsible sources are permitted to
compete.
FAR 2.101 Definitions.
• “Invoice” means a contractor’s bill or written
request for payment under the contract for
supplies delivered or services performed (see
also “proper invoice”).
• “Proper invoice” means an invoice that meets
the minimum standards specified in 32.905(b).
FAR 2.101 Definitions
• “May” denotes the permissive. However, the
words “no person may…” mean that no
person is required, authorized, or permitted to
do the act described.
• “Shall” or “Will” means the imperative.
FAR 2.101 Definitions
• “Performance Work Statement (PWS)” means a
statement of work for performance-based acquisitions
that describes the required results in clear, specific and
objective terms with measurable outcomes.
• “Statement of Objectives (SOO)” means a Governmentprepared document incorporated into the solicitation
that states the overall performance objectives. It is
used in solicitations when the Government intends to
provide the maximum flexibility to each offeror to
propose an innovative approach.
FAR 2.101 Definitions
• “Simplified acquisition threshold” means $150,000,
except for acquisitions of supplies or services that, as
determined by the head of the agency, are to be used
to support a contingency operation or to facilitate
defense against or recovery from nuclear, biological,
chemical, or radiological attack, the term means—
(1) $300,000 for any contract to be awarded and performed,
or purchase to be made, inside the United States; and
(2) $1 million for any contract to be awarded and performed,
or purchase to be made, outside the United States.
Subpart 2.2—Definitions Clause
• 2.201 Contract clause.
• Insert the clause at 52.202-1, Definitions, in
solicitations and contracts that exceed the
simplified acquisition threshold.
Subpart 2.2—Definitions Clause
•
2.201 Contract clause.
Insert the clause 52.202-1 Definitions.
As prescribed in 2.201, insert the following clause:
Definitions (Jan 2012)
(a) When a solicitation provision or contract clause uses a word or term that is defined in the Federal Acquisition
Regulation (FAR), the word or term has the same meaning as the definition in FAR 2.101 in effect at the time the
solicitation was issued, unless—
(1) The solicitation, or amended solicitation, provides a different definition;
(2) The contracting parties agree to a different definition;
(3) The part, subpart, or section of the FAR where the provision or clause is prescribed provides a
different meaning; or
(4) The word or term is defined in FAR Part 31, for use in the cost principles and procedures.
(b) The FAR Index is a guide to words and terms the FAR defines and shows where each definition is located. The
FAR Index is available via the Internet at http://www.acquisition.gov/far at the end of the FAR, after the
FAR Appendix.
(End of clause)
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