Introduction to the
Federal Acquisition Regulations FAR
• Basic regulations are used by all federal agencies
in their acquisition of supplies and services
• “Contracting by regulations” – 90% or more of the
clauses in government contracts are prescribed by
regulation
• All branches of the government influence the FAR
• 53 Parts
• 32,000 + pages
Where can the FAR be found?
• Printed materials– Federal Register
– Code of Federal Regulations (CFR)– Title 48
– CFR includes the FAR, its supplements and the
regulations of the Cost Accounting Standards Board
• Internet– http://www.arnet.gov/far
– http://hydra.gsa.gov/far/current/html/toc.html
FAR – What does it do?
• Establishes uniform policies and procedures
for acquisition by all federal agencies
– Satisfies the government’s needs as a consumer
– Minimizes administrative costs
– Upholds the government's integrity as a market
participant
– Fulfills public policy objectives of Congress and the
President
FAR – What does it look like?
• Table of Content – just the basics
– Parts (Parts 1-51)
– Clauses (Part 52)
• Provision and Clause Matrix
– Forms (Part 53)
– Topical Index
FAR- What will appear in our contracts
and how do we interpret what we see?
•
Each clause reads: 52.2__-___
“52” – tells you this is the clause section of the FAR
2 - place holder (I am unaware of any further
explanation of this digit)
__ - next two numbers identify the part of the FAR where
you will find the specific material on your subject
matter
Ex: 52.245-5 - Leads you to
Part 45 – Government Property – look for language that
applies to educational institutions
FAR – Types of Contracts
• Selecting the type of contract is generally a matter for
negotiation and requires sound judgment and
acknowledgeable participants
• Two broad categories of contracts commonly used
– Fixed price (Subpart 16.2)
– Cost reimbursable (Subpart 16.3)
FAR – Fixed Price
• Provides for a firm price – used when acquiring
commercial items
– Many subtypes available to contracting officer
• Examples:
• Firm fixed price – contractor has full responsibility for the
performance costs and resulting profits (or loss), and
assumption of risk
• Cost plus fixed fee – contractor has minimal responsibility for
performance costs and the negotiated fee is fixed
• No fee can be charged for non-profits
FAR - Cost Reimbursable
• Provides for payment of allowable incurred costs
– to the extent prescribed in the contract
– establishes an estimate of total costs for the purpose of
obligating funds and establishing a ceiling that the
contractor may not exceed without approval
– Work to “best efforts”
FAR – Other types of contracts
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•
•
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Incentive contracts
Indefinite-delivery contracts
Time and materials contracts
Labor hour contracts
Letter Contracts
Agreements
– Basic Ordering Agreements
– Basic Agreements
FAR - Uniform Contract Format
What are the basic parts of a government contract?
• Part I – Schedule
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–
–
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–
–
–
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A – Solicitation/Contract
B - Supplies or services and prices
C – Description/Specifications
D – Packaging and marking
E - Inspection and Acceptance
F – Deliveries or performance
G – Contract Administrative data
H – Special contract requirements
FAR - Uniform Contract Format
What are the basic parts of a government contract?
• Part II – Contract Clauses
I – Contract Clauses
• Part III – List of Documents, Exhibits and
Other Attachments
J – List of Documents, Exhibits and Other Attachments
FAR - Uniform Contract Format
What are the basic parts of a government contract?
• Part IV – Representations and Instructions
– K – Representations and certifications and other
statements of bidders
– L – Instructions, conditions and notices to bidders
– M – Evaluation factors for award
FAR – Some Key Parts
• Small Business Programs – Part 19
• Patent Rights – Part 27
• Contract Cost Principles and Procedures –
Part 31
• Clauses – Part 52
FAR Part 31
Contract Cost Principles and Procedures
• FAR Subpart 31.3 – Cost Principles of
Educational Institutions
• Leads us back to A-21
FAR Part 52
Clauses
• Clauses that frequently appear in our
contracts and/or subcontracts
– FAR 52.216-7 – Allowable cost and payment –
Subpart 31.3 should be used and/or substituted
– FAR 52.227-11 – Patent Rights (Short Form)
– FAR 52.227-14 – Data Rights – try to include
Alternate IV
– FAR 52.245-5 – Government Property – use
Alternative 1
FAR Part 52
Clauses (cont.)
• FAR 52.246-9 – Inspection of Research and
Development (Short Form) - most desirable
• FAR 52.249-5 – Termination for
Convenience of the Government