FAR Part 1 Flashcards
The Federal Acquisition Regulations System is established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies.
The FAR System consists of the Federal Acquisition Regulation (FAR), which is the primary document, and agency acquisition regulations that implement or supplement the FAR.
The FAR System is issued pursuant to
the Office of Federal Procurement Policy (OFPP) Act, which established the Office of Federal Procurement Policy within the Office of Management and Budget (OMB).
The FAR is prepared, issued, and maintained, and the FARSystem is coordinated, by the two agencies acting jointly
the Secretary of Defense, the Administrator of General Services, and the Administrator of the National Aeronautics and Space Administration, under their several statutory authorities. The FAR System will be maintained by the FAR Council.
FAR 1.108 FAR Conventions – (Continued)
(e) Citations.
(1) Unless otherwise specified, all statutory citations in the FAR refer to the United States
Code (U.S.C.).
(2) All references to Executive Orders are to those published in the Federal Register and codified under Title 3 of the Code of Federal Regulations (CFR).
FAR 1.102-2 Performance Standards
(a) Satisfy the customer in terms of cost, quality, and timeliness.
(1) The principal customers for the products and services acquired by the Federal Acquisition System are the users and the organizations that rely on those products and services to accomplish their missions.
(2) The System must be responsive and adaptive to customer needs, concerns, and priorities.
FAR 1.102-2 Performance Standards
(b) Minimize administrative operating costs.
- The System must minimize administrative operating costs. Government and industry acquisition personnel should work together as a team and be empowered to make decisions within their area of responsibility.
FAR1.102-3 AcquisitionTeam
(a) The Acquisition Team consists
of all participants in Government acquisition, including not only representatives of the technical, supply, and procurement communities, but also the customers they serve, and the contractors who provide the products and services.
FAR 1.103 Authority
- The Federal Acquisition Regulation (FAR) is issued under the joint authority of the Administrator of General Services, the Secretary of Defense, and the Administrator of the National Aeronautics and Space Administration, under their several statutory authorities.
- The FAR System is established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies.
- The FAR is prepared ,issued, and maintained ,and the FAR System is coordinated, by the two agencies acting jointly.
FAR 1.104 Applicability
- The FAR applies to all acquisitions as defined in part2 of the FAR, except where
expressly excluded.
Unless otherwise specified, the FAR applies to all agencies of the executive branch of the Federal Government.
It is intended to provide uniform policies and procedures for acquisition by executive agencies and to ensure that the acquisition process is conducted in a fair, transparent, and efficient manner.
FAR 1.105-1 Publication and Code Arrangement
(a) The FAR is published
in the daily issue of the Federal Register and, in
cumulative form, in the Code of Federal Regulations (CFR).
FAR 1.108 FAR Conventions –
(a) Words and terms. Definitions in part 2 apply throughout the FAR. Unless the context in which
they are used requires otherwise:
(1) Words in the singular include the plural, and those in the plural include the singular.
(2) Words in the masculine include the feminine, and those in the feminine include the masculine.
FAR 1.108 FAR Conventions –
(b) Delegation of authority.
Each authority is delegable unless specifically stated otherwise.
FAR 1.108 FAR Conventions –
(c) Dollar thresholds.
(1) A threshold is a minimum amount of money or percentage that must be met or exceeded for certain requirements to apply.
(2) Dollar thresholds refer to the basic contract amount, including option amounts unless otherwise specified.
FAR 1.108 FAR Conventions –
(d) Application of FAR changes to solicitations and contracts. Unless otherwise specified:
(1) FAR changes apply to solicitations issued on or after the effective date of the change.
(2) Contracting officers may, at their discretion, include changes in any existing contract with appropriate consideration.
FAR 1.105-1 Publication and Code Arrangement
(b) The FAR is codified
in Chapter 1 of Title 48 of the CFR.
FAR 1.105-1 Publication and Code Arrangement
(c) The FAR is issued as Chapter 1 of Title 48, with each agency’s implementing regulations codified in subsequent chapters.
Each section of the FAR contains a unique number.
The digits to the left of the decimal point represent the part number, and the digits to the right of the decimal point represent the section number.
FAR 1.102-4 Role of the Acquisition Team
(a) The role of the Acquisition Team
to achieve the guiding principles through the shared responsibility and collaboration of all team members, recognizing each team member’s contribution to the overall acquisition process.
FAR 1.102-4 Role of the Acquisition Team
(b) Team members should work together to
meet the needs of the customer while balancing the interests of the Government and the contractor to achieve best value solutions.
FAR 1.102-4 Role of the Acquisition Team
(c) Team members must:
(1) Exercise discretion and sound business judgment;
(2) Provide flexibility and creativity in the application of contracting principles;
(3) Be knowledgeable of the policies, regulations, and statutes that govern the acquisition process; and
(4) Communicate openly and honestly with each other and with their customers and contractors.
FAR 1.102-4 Role of the Acquisition Team
(d) The Acquisition Team should
continuously strive to improve the acquisition process through the use of innovative techniques and by seeking opportunities to streamline procedures and reduce unnecessary burdens.
FAR1.102-3 Acquisition Team
(b) The role of each member of the Acquisition Team is
to exercise personal initiative and sound business judgment in providing the best value product or service to meet the customer’s needs. In addition, each team member should assume that they have the authority and be encouraged to use innovative techniques, within the limits of their authority, to fulfill these objectives.
FAR1.102-3 Acquisition Team
(c) The Government must ensure that all members of the AcquisitionTeam are
provided with training and development opportunities to enable them to perform their roles effectively and efficiently.
FAR 1.102 Statement of Guiding Principles for the Federal Acquisition System
(a) The vision for the Federal Acquisition System is to
to deliver on a timely basis the best value product or service to the customer, while maintaining the public’s trust and fulfilling public policy objectives.
FAR 1.102 Statement of Guiding Principles for the Federal Acquisition System
(b) The Federal Acquisition System will:
- Satisfy the customer in terms of cost, quality, and timeliness of the delivered product or service by, for example, maximizing the use of commercial products and services;
- Minimize administrative operating costs;
- Conduct business with integrity, fairness, and openness; and
- Fulfill public policy objectives.
FAR 1.102 Statement of Guiding Principles for the Federal Acquisition System
(c) The Federal Acquisition System recognizes
the role of the acquisition work force and that the need to apply professional judgment is necessary to successfully implement these guiding principles.
FAR 1.102-2 Performance Standards
(c) Conduct business with integrity, fairness, and openness.
(1) An essential consideration in every aspect of the System is maintaining the public’s trust.
(2) The System must conduct business with integrity, fairness, and openness so that the public will know that the Government conducts business with integrity and in a fair manner.
FAR 1.102-2 Performance Standards
(d) Fulfill public policy objectives.
- The System must support the attainment of public policy goals adopted by the Congress and the President by using the acquisition process to promote competition, transparency, and other public policy objectives
FAR 1.108 FAR Conventions
(f) Imperativesentences.
(1) When an imperative sentence directs action, the subject is understood to be the
contracting officer or other members of the acquisition team.
FAR 1.108 FAR Conventions
(g) Line of business.
Agencies must comply with FAR requirements when conducting acquisition activities, regardless of the line of business or the procurement methodology used.
What Is the FAR System?
The Federal Acquisition Regulation system is established for the codification and publication of
uniform policies and procedures for acquisition by all executive agencies.
The Federal Acquisition Regulation system consists of the Federal Acquisition Regulation (FAR), which
is the
primary document, and agency acquisition regulations that implement or supplement the FAR.
Ref.: FAR 1.101
What Are the Guiding Principles?
The FAR system wil:
Satisfy the customer in terms of cost, quality, and timeliness of the delivered product or service by.
* Maximizing the use of commercial products and services,
* Using contractors who have a track record of successful past
performance or who demonstrate a proven ability to perform, and
* Promoting competition
Minimize administrative operating costs
Conduct business with integrity, fairness, and openness
Fulfil public policy objectives
Who Is on the Acquisition Team?
The acquisition team consists of all participants in government acquisition including not only representatives of the technical,
supply, and procurement communities, but also the customers
they serve and the contractors who provide the products and services.
The role of each member of the acquisition team is to exercise personal initiative and sound business judgment in providing the best value product or service to meet the customer’s needs.
Government members of the team must be empowered to make
acquisition decisions within their
areas of responsibility, including selection, negotiation, and administration of contracts consistent
with the guiding principles. In particular, the contracting officer must have the authority to the maximum extent practicable and
consistent with law, to determine the application of rules, regulations, and policies, on a specific contract.
Ref.: FAR 1.102(d) & 1.102-4(a)
Can You Do Something Not Specifically Required or Allowed b y t h e FAR?
If a policy or procedure, or a particular strategy or practice, is in the best interest of the government and
is not specifically addressed in the FAR, nor prohibited by law (statute or case law), executive order or other
regulation, government members of the team should not assume it is prohibited.
Absence of direction should be interpreted as permitting the team to innovate and use sound business judgment that is otherwise consistent with law and within the limits of their authority. Contracting officers should take the lead in
encouraging business process innovations and ensuring that business decisions are sound.
Ref.: FAR 1.102-4(e)
Can You Do Something Not Specifically Required or Allowed b y t h e FAR?
Deviations from the FAR may be granted when necessary to meet the specific needs and requirements of each agency. The development and testing of new techniques and methods of acquisition should not be stifled simply because
such action would require a FAR deviation.
Deviation
* The issuance or use of a policy, procedure, solicitation provision, contract clause, method, or practice of conducting acquisition actions of any kind at any stage of
the acquisition process that is inconsistent with the FAR
* The omission of any solicitation provision or contract clause when its prescription
requires its use
* The use of any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR
FAR 1.4
Can You Do Something Not Specifically Required or Allowed b y t h e FAR?
Deviations from the FAR may be granted when necessary to meet the specific needs and requirements of each agency.
The development and testing of new techniques and methods of acquisition should not be stifled simply because such action would require a FAR deviation.
IndividualDeviation
Issued for one
specific contract action
Class Deviation Issued for a class
of contract actions
The FAR’s Establishment and Authority
Aug 30 1974 Executive Office of the President
OFPP
To create an office of Federal Procurement Policy designed to promote economy, efficiency and effectiveness in procurement of goods, services and facilities by and for the executive branch of the Federal Government
The FAR is prepared, issued and maintained by
Secretary of Defense
Administrator of General Services GSA
NASA
How is the FAR maintained
The FAR is published in:
Federal Register: In the daily issue
Code of Federal Regulations: In cumulated form
Loose leaf: As a separate edition
Responsible for establishing and operating the FAR
GSA
Secretariat to print, publish, and distribute
the FAR through the Code of Federal Regulations system, including aloose-leaf edition with periodic updates
On-going maintenance of FAR
DAR Council: Defense Acquisition Regulations Council
CAA Civilian Agency Acquistion Council
On-going maintenance of FAR.
Each council shall be responsible for (DAR Council, CAA Council)
Agreeing on all revisions with the other council,
- Submitting to the FAR Secretariat the information required for publication
in the Federal Register of a notice soliciting comments on a proposed
revision to the FAR, - Considering all comments received in response to notice of proposed
revisions, - Arranging for public meetings,
- Preparing any final revision in the appropriate FAR format and language, and
- Submitting any final revision to the FAR Secretariat for publication in the Federal Register and printing for distribution.
GSA Authorizes the FAR Secretariat to print,
publish, and distribute the FAR
Shall provide the two councils with centralized services for:
- Keeping a synopsis of current FAR cases and their status,
- Maintaining official files,
- Assisting parties interested in reviewing the
files on completed cases, and - Performing administrative tasks pertaining to FAR maintenance.
How Is the FAR Arranged?
The FAR is divided into subchapters, parts (each of which covers
a separate aspect of acquisition), subparts, sections, and subsections.
9.106-4(d)
9=Part
1=Subpart
06=Section
4=Subsection
(d) paragraph
FAR Conventions: Definitions
Definitions in Part 2 apply to the entire regulation unless specifically defined in another part, subpart, section, provision, or clause.
Words or terms defined in a specific part, subpart, section, provision, or clause have that meaning when used ni that part, subpart, section, provision, or clause. Undefined words retain their common dictionary meaning.
FAR Conventions: Delegation of Authority
Each authority is delegable unless specifically stated otherwise.
FAR Conventions: Dollar Thresholds
Unless otherwise specified, a specific dollar threshold for the purpose of applicability is the final anticipated dollar value of the action, including the dollar value of all options.
More FAR Conventions
FAR changes apply to solicitations issued
on or after the effective date of the change.
Contracting officers may include FAR changes before
the effective date, if award of the contract occurs on or after that date
MoreFARConventions
When the FAR cites any statute
the citation includes all applicable amendments.
More FAR Conventions
When an imperative sentence directs action,
the contracting officer is responsible for the action, unless another party is expressly cited.
“Must” “Should” “Shall” “Will”
What Are Threshold Adjustments?
The FAR Council periodically adjusts all statutory acquisition-
related dollar thresholds in the FAR for inflation, except thresholds
- established by the Wage Rates Requirements
(formerly Davis-Bacon Act),
- the Service Contract Labor
Standards (formerly Service Contract Act of 1965),
- or the United States Trade Representative pursuant to the authority of the
Trade Agreements Act of 1979.
This adjustment is calculated every 5 years, starting in October 2005, using the Consumer Price Index (CPI) for all-urban consumers.
Ref.: FAR 1.109
How Do Agencies and the Public Participate in Setting Acquisition Policies and Procedures?
Views of agencies and nongovernmental parties or organizations will be considered in formulating acquisition policies and procedures.
- The opportunity to submit written comments on proposed significant revisions shall be provided by placing a notice in the Federal Register. Aminimum of 30 days and,
normally, at least 60 days wil be given for the receipt of comments. - Comments need not be solicited when the proposed coverage does not constitute a significant revision.
- Consideration shall also be given to unsolicited recommendations for revisions that
have been submitted in writing with sufficient data and rationale to permit their evaluation. - Public meetings may be appropriate when a decision to adopt, amend, or delete FAR coverage is likely to benefit from significant additional views and discussion.
Ref.: FAR 1.5
How Do Agencies and the Public Participate in Setting Acquisition Policies and Procedures?
Agencies may issue agency acquisition regulations that
implement or supplement the FAR and incorporate, together with the FAR, agency policies, procedures, contract clauses, solicitation provisions, and forms that govern the contracting process.
Agency acquisition regulations shall not unnecessarily repeat
paraphrase, or otherwise restate material contained in the FAR or higher-level agency acquisition regulations, or conflict or be inconsistent with FAR
content.
Regulations are published for comment when they have a
significant effect beyond the internal operating procedures of the agency or have significant cost or administrative impact.
What Are the Contracting Officer’s Responsibilities
Bind the government only to the authority
delegated, within limits as instructed by their
appointing authority
Ensure that all
requirements of law, executive orders,
regulations, and all applicable procedures have been met
What Are the Contracting Officer’s Authorities
Contract for authorized supplies and services
Enter into contracts and
sign on behalf of the government
Administer or terminate contracts and make related determinations
What Are the Contracting Officer’s Authorities and Responsibilities?
Responsible for ensuring performance of all necessary actions for effective
contracting, ensuring compliance with the terms, and safeguarding the interests of the United States in its contractual relationships.
The contracting officer shall…
Ensure that the requirements of FAR 1.602-1(b) have been met, and sufficient funds are available for obligation
Ensure contractors receive impartial, fair, and equitable treatment
Request and consider the advice of specialists in audit, law, engineering, information security, transportation, and other fields, as appropriate
Unauthorized commitment
An agreement that is not binding solely because the government representative who made ti lacked the authority to enter into the agreement on behalf of the government
Ratification
The act of approving an unauthorized commitment by an official who has the authority to do so
What Are the Contracting Officer’s Authorities and Responsibilities?
The contracting officer is required to designate and authorize, in writing, a contracting officer’s representative (COR) to assist in the technical monitoring or
administration of contracts and orders other than those that are firm-fixed price, and for firm-fixed-price contracts and orders, as appropriate.
The COR must be…
A government employee, unless otherwise authorized in agency regulations
Qualified by training and experience commensurate with the responsibilities to be delegated
Certified and maintain certification
What Are the Contracting Officer’s Authorities and Responsibilities?
The contracting officer is required to designate and authorize, in
writing, a contracting officer’s representative (COR) to assist in the technical monitoring
administration of contracts and orders other than those that are firm-fixed price, and for firm-fixed-price contracts and orders, as appropriate.
The COR has no authority to…
Make any commitments or changes that affect the price, quality, quantity, delivery, or other terms or conditions of the contract.
Determination and Findings
A special form of written approval by an authorized official that is required by statute or regulation as a prerequisite to taking certain contract actions.
- The determination is a conclusion or decision supported by the findings.
- The findings are statements of fact or rationale essential to support the
determination and must cover each requirement of the statute or regulation
Requirements for specific types of D&F’s
can be found with the appropriate subject matter.
When an option is anticipated, the D&F shall state the approximate quantity to be awarded initially and the extent of the increase to be permitted by the option.
A class D&F provides authority for a class of contract actions. Aclass may consist of contract actions for the same or related supplies or services or other contract actions that require essentially identical
justification.
When a D&F is required, ti shall be signed by
the appropriate official in accordance with agency regulations.
Authority to sign or delegate signature authority for the various D&F’s is as shown in the applicable
FAR part.
Each D&F shall set forth enough facts and circumstances to clearly and convincingly justify the specific determination made.
The Federal Acquisition System will:
- Satisfy the customer in terms of cost, quality, and timeliness of the delivered product or service;
- Minimize administrative operating costs;
- Conduct business with integrity, fairness, and openness; and
- Fulfill public policy objectives.
a. The FAR is published in:
- The daily issue of the Federal
Register; - Cumulated form in the Code of
Federal Regulations (CFR); and - A separate edition available at the
Federal Acquisition Regulation
website.
b. The FAR is issued as
Chapter 1 of Title 48, CFR. Subsequent chapters are reserved for agency acquisition regulations that implement or supplement the FAR (see subpart 1.3). The CFR Staff will assign chapter numbers to requesting agencies.
Each numbered unit or segment (e.g., part, subpart, section, etc.) of an agency acquisition regulation that is codified in the CFR shall begin
with the chapter number. However, the chapter number assigned to the FAR will not be included in the numbered units or segments of the FAR.
APPLICATION OF FAR CHANGES TO SOLICITATIONS AND CONTRACTS: Unless otherwise specified
(a) FAR changes apply to solicitations issued on or after the effective date of the change;
(b) contracting officers may, at their discretion, include the FAR changes in solicitations issued before the effective date, provided award of the resulting contracts) occurs on or after the effective date; and
(c) contracting officers may, at their discretion, include the changes in any existing contract with appropriate consideration.
CITATIONS: When the FAR cites a statute,
executive order, Office of Management and Budget (OMB) circular, Office of Federal Procurement Policy (OFPP) letter, or relevant portion of the Code of Federal Regulations (CFR), the citation includes
all applicable amendments, unless otherwise stated.
IMPERATIVE SENTENCES: When an imperative sentence (containing verbs such as shall, must, or will) directs action,
the contracting officer is responsible for the action, unless another party is expressly cited.
Unless precluded by law, executive order, or regulation, deviations from the FAR
may be granted to meet the specific needs and requirements of each agency.
- Individual deviations (FAR 1.403).
Individual deviations affect only one contract action, and unless FAR 1.405(e) is applicable, may be
authorized by the agency head. The contracting officer must document the justification and agency approval in the contract file.
- Class deviations (FAR 1.404). Class deviations affect
more than one contract action. When an agency knows that it will require a class deviation on a permanent basis, it should propose a FAR revision, if appropriate. Civilian agencies, other than NASA, must furnish a copy of each approved class deviation to the FAR Secretariat.
- An agency official who may authorize a class deviation, before doing so,
shall consult with the chairperson of the Civilian Agency Acquisition Council (CAA Council), unless that agency official determines that urgency precludes such consultation.
- Recommended revisions to the FAR shall be transmitted to
the FAR Secretariat by agency heads, or their designees, for authorizing class deviations.
- For DOD, class deviations shall be controlled, processed, and approved in accordance
with the Defense FAR
Supplement.
- For NASA, class deviations shall be controlled and approved by the
Assistant Administrator for Procurement.
Deviations shall be processed in accordance with agency regulations.
Contracting officers have authority to enter into, administer, or terminate contracts, and make related determinations and findings; however, they may bind the government
only to the extent of the authority delegated to them.
Contracting officers are not to enter into contracts unless all requirements of law, executive orders, regulations, and other applicable procedures, including clearances and approvals, have been met.
Ratification is the act of approving an unauthorized commitment. Unauthorized commitments may be ratified when:
- Supplies or services have been provided to and accepted by the government, or the government otherwise has obtained or will obtain a benefit resulting from performance of the unauthorized commitment;
The resulting contract would otherwise have been proper if made by an appropriate contracting officer;
- The contracting officer determines the price to be fair and reasonable;
*The contracting officer recommends payment and legal counsel concurs in the recommendation;
- Funds are available and were available at the time the unauthorized commitment was made, and
The ratification is in accordance with any other limitations prescribed under agency procedures.
The ratifying official has the authority to enter into a contractual commitment.
The contracting officer is required to designate and authorize, in writing, a contracting officer’s representative (COR) to assist
in the technical monitoring or administration of contracts and orders other than those that are firm-fixed price,
and for firm-fixed-price contracts and orders, as appropriate.
A COR must be a government employee, unless otherwise authorized in agency regulations;
be qualified by training and experience commensurate with the responsibilities to be delegated;
and be certified and maintain certification.
The COR has no authority to make any commitments or changesthat affect price, quality, quantity, delivery, or other terms and conditions of the contract.
Determination and Findings (D&F) means
a special form of written approval by an authorized official
that is required by statute or regulation as a prerequisite to taking certain contract actions.
The “determination” is a conclusion or decision supported by the
“findings.”
The findings are statements of fact or rationale essential to support the determination and must cover each requirement of the statute or regulation.
A D&F shall ordinarily be for an individual contract action. Unless otherwise prohibited, class D&s may be executed
for classes of contract actions. A class may consist of contract actions for the same or related supplies or services or other contract actions that require essentially identical justification.
At a minimum, a D&E shall include, in the prescribed agency format, the following information:
identification of the agency and of the contracting activity and specific identification of the document as a D&F;
nature and/or description of the action being approved;
citation of the appropriate statute and/or regulation upon which the D&F is based;
findings that detail the particular circumstances, facts, or reasoning essential to support the determination;
a determination, based on the findings, that the proposed action is justified under the applicable statute or regulation;
an expiration date of the D&F, if required;
the signature of the official authorized to sign the D&F; and the date signed.
