FAR

The FAR applies to all executive branch agencies and is maintained jointly by the Department of Defense (DOD), General Services Administration (GSA), and NASA through the FAR Council. It is supplemented by agency-specific regulations — DFARS (Defense), GSAM (GSA), HHSAR (HHS), AIDAR (USAID), and others — that add requirements for specific agencies.

FAR structure — the parts you need to know:

• FAR Part 2 (Definitions) — Key definitions like "commercial product" (FAR 2.101), "responsible contractor," and "organizational conflict of interest." FAR 2.101 is one of the most frequently cited sections because it defines what qualifies as a "commercial product" or "commercial service" — which determines whether simplified commercial acquisition procedures apply.
• FAR Part 8 — Required sources of supply (AbilityOne, Federal Supply Schedules)
• FAR Part 12 — Acquisition of commercial products and services (streamlined procedures)
• FAR Part 13 — Simplified acquisition procedures (for purchases under $250K)
• FAR Part 14 — Sealed bidding (IFBs, lowest-price award)
• FAR Part 15 — Contracting by negotiation (RFPs, best-value evaluation). This part governs most complex procurements and defines source selection procedures.
• FAR Part 16 — Types of contracts (FFP, T&M, Cost-Plus, IDIQ)
• FAR Part 19 — Small business programs (8(a), HUBZone, SDVOSB, WOSB set-asides)
• FAR Part 31 — Cost principles (what costs are allowable on cost-reimbursement contracts)
• FAR Part 52 — Solicitation provisions and contract clauses (the actual clause text referenced in contracts)

Why contractors must understand the FAR:

• It tells you how your proposal will be evaluated (Part 15) — the government must follow these procedures
• It defines your rights — including the right to a debrief after losing a competition and the right to protest unfair awards
• It specifies the clauses in your contract — which govern payment terms, changes, disputes, and termination
• It determines which procurements are set aside for small businesses (Part 19)
• It defines allowable vs. unallowable costs (Part 31) — critical for cost-type contracts

How to use the FAR in practice: The full FAR is freely available at acquisition.gov/far. When you receive an RFP, look at the clauses referenced in Section I — each clause number (e.g., FAR 52.212-4) traces back to a specific FAR provision that defines your obligations. Understanding these clauses is not optional; they're legally binding once you sign the contract.

The FAR isn't just for lawyers — any contractor who bids on federal work should be familiar with Parts 12, 15, 16, and 19 at minimum. It's your rulebook for winning and performing government contracts.