Federal Acquisition Regulations (FAR) Compliance refers to the adherence to the set of codes drafted by US Federal Government that govern the procurement process of goods and services. These regulations are applicable to all federal government contracting and are designed to ensure that the government’s purchasing procedures are standard, consistent, and conducted in a fair and impartial manner. Being FAR compliant is mandatory for businesses that aspire to work or are currently working on federal contracts.
The emphasis on FAR Compliance stems from the government’s focus on accountability, fairness, and transparency in its procurement process. It encompasses a wide range of regulations including competitive pricing, labor laws, cost accounting standards, subcontracting, and more. Non-compliance can lead to severe consequences such as penalties, fines, or even debarment from future government contracts. Thus, businesses striving for success in the federal marketplace need a comprehensive understanding of FAR Compliance, its requirements, and its implications.
