The Federal Acquisition Regulation (FAR) is the principal set of rules governing the federal government’s purchasing process. It establishes uniform policies and procedures for acquiring goods and services across executive agencies and serves as the foundation of the federal procurement system. FAR ensures that acquisitions are conducted fairly, transparently, and in accordance with applicable laws and regulations.
Published jointly by the General Services Administration (GSA), the Department of Defense (DoD), and the National Aeronautics and Space Administration (NASA), the FAR is codified in Title 48 of the Code of Federal Regulations (CFR). It applies to nearly all federal agencies and governs everything from solicitation to contract closeout.
Purpose and Scope
FAR was created to standardize procurement practices across the federal government. It ensures competition, promotes integrity, and provides a framework for legal and ethical contracting. FAR applies to contracting officers, program managers, vendors, and any individuals involved in government acquisition.
The regulation covers a wide range of procurement functions, including:
- Acquisition planning
- Contract formation and negotiation
- Socioeconomic policies
- Pricing and cost principles
- Contract administration
- Dispute resolution and termination
By establishing consistent rules, FAR helps maintain fairness in the award process and ensures taxpayer dollars are spent efficiently.
Structure of the FAR
FAR is organized into 53 parts, divided into Subchapters A through H, which group related rules and policies. Each part addresses a specific area of federal procurement.
Key FAR parts include:
- Part 1: Federal Acquisition System — outlines guiding principles and roles
- Part 2: Definitions of Words and Terms — provides standardized terminology
- Part 5: Publicizing Contract Actions — governs how opportunities are advertised
- Part 6: Competition Requirements — details when and how competition is required
- Part 12: Acquisition of Commercial Products and Services — streamlines procedures for commercial buys
- Part 15: Contracting by Negotiation — governs complex or high-value procurements
- Part 19: Small Business Programs — establishes requirements for small business participation
- Part 52: Solicitation Provisions and Contract Clauses — includes standard language for federal contracts
Each part contains subparts, sections, and clauses that lay out procedures, exceptions, and required language for contracts.
How FAR Affects GSA and Contractors
FAR is central to how GSA develops and administers contract vehicles such as the Multiple Award Schedule (MAS). Contractors participating in GSA programs must understand FAR rules that apply to their solicitations, contract performance, modifications, and reporting.
For federal contractors, FAR compliance means:
- Adhering to solicitation instructions and evaluation criteria
- Following prescribed contract clauses included in awards (e.g., for labor standards, cybersecurity, or data rights)
- Meeting socioeconomic and subcontracting requirements, especially for small business participation
- Maintaining accurate pricing and cost data in accordance with applicable FAR parts
- Submitting reports or certifications such as those related to sustainability, cybersecurity, or domestic sourcing
Failure to comply with FAR can result in bid disqualification, contract termination, audits, or penalties under laws like the False Claims Act.
Supplements and Agency-Specific Regulations
While FAR sets the baseline, many agencies have their own FAR supplements that tailor rules to their unique missions. These include:
- DFARS (Defense Federal Acquisition Regulation Supplement) for the Department of Defense
- GSAM (General Services Administration Acquisition Manual) for GSA
- NASA FAR Supplement (NFS) for NASA contracts
These supplements do not override the FAR but provide additional procedures, clauses, and instructions specific to each agency.
Conclusion
The Federal Acquisition Regulation (FAR) is the backbone of the U.S. federal procurement system. It governs how agencies plan, solicit, evaluate, award, and manage contracts. For both federal employees and contractors, understanding FAR is essential for navigating the government acquisition environment and maintaining compliance. As procurement priorities evolve — including cybersecurity, sustainability, and equity — the FAR continues to adapt to reflect the government’s strategic objectives.
