(a) The Federal Acquisition Regulations System (the System) is a collection of acquisition regulations and guidance, and consists of the following:

(1)The Federal Acquisition Regulation (FAR), which is a single acquisition regulation for all acquisitions (see 2.101), and all executive agencies. The FAR is located at 48 CFR chapter 1.

(2) Agency acquisition regulations that implement or supplement the FAR (see 48 CFR chapters 2 through 99); and

(3) Acquisition guides, which show best practices (add link to location).

(b) The System does not include internal guidance supplementing agency acquisition regulations described in paragraph (a)(2) of this section.

The Federal Acquisition Regulations System is established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies. The Federal Acquisition Regulations 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 does not include internal agency guidance of the type described in 1.301(a)(2).

(a) The System will-

(1) Meet an agency’s mission efficiently and effectively first;

(2) Ensure the most effective use of taxpayer dollars in ways that recognize the value of time, encourage innovation, promote merit, satisfy the customer, and balance these interests and objectives;

(3) Maximize buying commercial products or commercial services rather than requiring Government-unique solutions;

(4) Award contracts to contractors who demonstrate a superior ability to perform;

(5) Promote competition and fair opportunity;

(6) Conduct business with integrity, fairness, and openness; and

(7) Delegate the authority to make decisions and the accountability for the decisions to the lowest level within the System, consistent with law. The contracting officer must have the authority, to the maximum extent practicable and consistent with law, to determine how and when to apply rules, regulations, and policies on a specific contract.

(b)

(1) Acquisition team members in the System include Government acquisition representatives from the technical, supply, sourcing, small business and procurement areas; the customers they support; and the contractors who deliver the products and services.

(2) The role of each acquisition team member in the System is to exercise personal initiative and sound business judgment to meet the agency’s mission and manage risk.

(3) To continually promote innovation, the FAR encourages acquisition team members to pursue new approaches, and document successes and lessons learned.

(4) In this spirit, acquisition team members may assume that if a specific strategy, practice, policy, or procedure is in the best interests of the Government and is not addressed in the FAR, nor prohibited by law (statute or case law), Executive order or other regulation, then they are allowed to use the strategy, practice, policy, or procedure.

(5) Acquisition team members should work together as a team and be empowered to make decisions within their area of responsibility.

(6) Acquisition team members can propose deviations from FAR regulations if the deviation would promote economy, efficiency, or innovation (see subpart 1.3).

(c) To achieve efficient operations, the System must focus on “risk management.” Attempting to eliminate all risk is prohibitive in terms of cost to the taxpayer.

(a) The System has been developed according to the requirements of 41 U.S.C. chapter 13, Acquisition Councils.

(b) The FAR is prepared and jointly issued by the Secretary of Defense, the Administrator of General Services, and the Administrator of National Aeronautics and Space, under their several statutory authorities.

(a) Changes to the FAR are published in the daily issue of the Federal Register. A cumulative version of the FAR is published–

(1) In the Code of Federal Regulations (CFR), in an annually updated version, at https://www.govinfo.gov/app/collection/cfr, and as a daily updated version at ecfr.gov; and

(2) In an enhanced daily updated version available at https://www.acquisition.gov/browse/index/far.

(b) Each numbered unit or segment (e.g., part, subpart, section, etc.) of an agency acquisition regulation that is codified in the CFR must 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.

(c) Using the FAR coverage at 9.106-4(d) as a typical illustration, reference to the part would be "FAR part  9" outside the FAR and " part  9" within the FAR. Reference to the section would be "FAR 9.106" outside the FAR and " 9.106" within the FAR.

(d) If required by 41 U.S.C. 1707, proposed revisions must be published in the Federal Register for public comment.

(e) The General Services Administration is responsible for establishing and operating the FAR Regulatory Secretariat to publish and distribute the FAR through the CFR system.

The list of information collections and recordkeeping requirements contained in this regulation have been approved by the OMB. They can be found at www.acquisition.gov/FAR-PRA.

(a) Words and terms.

(1) 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 in that part, subpart, section, provision, or clause.

(2) Undefined words retain their common dictionary meaning.

(b) Delegation of authority. Each authority is delegable unless specifically stated otherwise.

(c) Dollar thresholds.

(1) Unless otherwise specified, a specific dollar threshold is the final anticipated dollar value of the action, including the dollar value of all options.

(2) The final anticipated dollar value must be the highest final priced alternative to the Government, including the dollar value of all options, if the action establishes—

(i) A maximum quantity of supplies or services to be acquired;

(ii) A ceiling price; or

(iii) The final price to be based on future events.

(d) Applying 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 the FAR changes in solicitations issued before the effective date, provided award of the resulting contract(s) occurs on or after the effective date; and

(3) Contracting officers may, at their discretion, include the changes in any existing contract with appropriate consideration.

(e) Citations. When the FAR cites a statute, Executive order, Office of Management and Budget circular, Office of Federal Procurement Policy policy letter, or relevant portion of the Code of Federal Regulations, the citation includes all applicable amendments, unless otherwise stated.

(f) Required action. When a sentence directs action, the contracting officer is responsible for the action, unless another party is expressly cited.

The FAR adjusts statutory acquisition-related dollar thresholds for inflation every 5 years. The statute at 41 U.S.C. 1908 establishes the calculation used to escalate the thresholds. The statute also identifies certain thresholds that must not be escalated. A matrix of the most recent calculations is available at http://www.regulations.gov (search FAR Case 2019-013, open the docket folder, and go to the supporting documents file).

Titles 40 and 41 of the United States Code were revised and reorganized, as a result of positive law codifications. A table identifying the original “popular name” of the public laws in those titles, and how they are referred to in the FAR, is available at www.acquisition.gov/renamingpubliclaws.

(a)

(1) An agency head may issue agency acquisition regulations that are necessary to implement the FAR, or to supplement the FAR to satisfy a specific agency need, according to 41 U.S.C. 1303(a)(2).

(2) Agency acquisition regulations must not—

(i) Unnecessarily repeat, paraphrase, or otherwise restate material contained in the FAR or higher-level agency acquisition regulations; or

(ii) Conflict or be inconsistent with the FAR, except as required by law or as provided in subpart  1.3.

(b)

(1) If required by 41 U.S.C. 1707, agencies must publish their acquisition regulations for comment in the Federal Register. However, publication is not required for issuances that merely implement or supplement higher level issuances that have previously undergone the public comment process, unless such implementation or supplementation results in an additional significant cost or administrative impact on contractors or offerors or effect beyond the internal operating procedures of the issuing organization.

(2) Agencies must also comply with other applicable statutes, (e.g., the Paperwork Reduction Act (44 U.S.C. 3501, et seq.) and the Regulatory Flexibility Act (5 U.S.C. 601, et seq.)).

(c) An agency head may authorize internal agency guidance at any organizational level (e.g., designations and delegations of authority, assignments of responsibilities, work-flow procedures, and internal reporting requirements). Internal agency guidance does not need to be published in the Federal Register for comment, unless the agency guidance has a significant effect beyond the internal operating procedures of the agency or creates an additional significant cost or administrative impact on contractors or offerors.

Deviation means one or any combination of the following:

(a) Issuing or using a policy, procedure, solicitation provision (see definition in 2.101), contract clause (see definition in 2.101), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR.

(b) Leaving out any solicitation provision or contract clause when its prescription requires including it.

(c) Using any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR (see definition of “modification” in 52.101(a) and definition of "alternate" in 2.101).

(d) Using a solicitation provision or contract clause prescribed by the FAR on a substantially as follows or substantially the same as basis (see definitions in 2.101 and 52.101(a)), if such use is inconsistent with the intent, principle, or substance of the prescription or related coverage on the subject matter in the FAR.

(e) Authorizing lesser or greater limitations on the use of any solicitation provision, contract clause, policy, or procedure required by the FAR.

(f) Issuing policies or procedures that govern the contracting process or otherwise control contracting relationships that are not incorporated into agency acquisition regulations according to 1.201(a).

(a) Unless not allowed by law, Executive order, or regulation, agencies may deviate from the FAR as specified in this subpart when necessary to meet an agency’s specific needs (e.g., to encourage developing and testing new techniques and methods of acquisition).

(b) Refer to 31.101 for instructions on deviating from part 31, Contract Cost Principles and Procedures.

(c) Agencies are not authorized to deviate from 30.201-3 and 30.201-4, or the requirements of the Cost Accounting Standards Board (CASB) rules and regulations (48 CFR chapter 99). Refer to 30.201-5 for instructions on deviating from the Cost Accounting Standards.

Individual deviations affect only one contract action (i.e., only one contract awarded from the solicitation). The agency head may authorize individual deviations. The contracting officer must document the justification and agency approval in the contract file.

(a) Class deviations. Class deviations affect more than one contract action (i.e., any solicitation that will result in multiple contract awards). When an agency knows that it will require a class deviation on a permanent basis, it may develop and propose a FAR revision.

(b) Civilian agencies.

(1) Agency heads may authorize class deviations from the FAR.

(2)Agencies must email a copy of each agency-approved class deviation to the FAR Secretariat at GSARegSec@gsa.gov.

(3) Agencies must email the results from implementing deviations to the chair of the Civilian Agency Acquisition Council (CAAC).

(4) An agency may choose to consult with the chair of the CAAC for feedback and recommendations.

(5) The chair of the CAAC may issue CAAC letters that include model deviations, for uniformity.

(c) DoD. The Defense FAR Supplement prescribes the control, processing, and approval of class deviations.

(a) Deviations from the FAR that are necessary to comply with a treaty to which the United States is a party are authorized, unless the deviation would be inconsistent with FAR coverage based on a law enacted after the treaty’s execution.

(b) Deviations from the FAR that are necessary to comply with an executive agreement (i.e., a Government-to-Government agreement, including an agreement with international organizations, to which the United States is a party) are authorized unless the deviation would be inconsistent with FAR coverage based on law.

The agency head may establish contracting activities and delegate contracting functions to the contracting activities. Per 41 U.S.C. 3102(b), agency heads may mutually agree to—

(a) Assign contracting functions and responsibilities from one agency to another; and

(b) Create joint or combined offices to exercise acquisition functions and responsibilities.

(a) Designation.

(1) The contracting officer’s representative (COR) must be nominated either by the requiring activity or according to agency procedures. The contracting officer designates and authorizes a COR, in writing and according to agency procedures. See 7.104(e), which directs the COR designation as early as possible.

(2) The COR designation must-

(i) Specify the extent of the COR's authority to act on behalf of the contracting officer;

(ii) Specify the period covered by the designation;

(iii) State the authority cannot be delegated further; and

(iv) State that the COR may be personally liable for unauthorized acts

(3)

(i) Contracting officers may not delegate to a COR responsibilities that are delegated to a contract administration office under 42.202. Contracting officers may assign the COR other duties described at 42.302.

(ii) The contracting officer must communicate the COR’s duties clearly and in writing.

(4) The contracting officer must send copies of the COR’s designation to the contractor and the contract administration office.

(b) Types of contracts and orders. The contracting officer must assign a COR to all contracts and orders other than firm fixed-price contracts and orders. For firm fixed-price contracts and orders, the contracting officer may assign a COR.

(c) COR Qualifications. The COR-

(1) Must be a Government employee, unless otherwise authorized in agency regulations;

(2) Must be certified and must maintain certification. The certification must align with the current Office of Management and Budget memorandum on the Federal Acquisition Certification for Contracting Officer Representatives (FAC-COR) guidance, or for DoD, according to DoD policy guidance; and

(3) Must be qualified by training and experience.

(d) Lack of authority. A COR has no authority to make any commitments or changes that affect price, quality, quantity, delivery, or other terms and conditions of the contract. The COR must not direct the contractor or its subcontractors to operate in conflict with the contract terms and conditions.

(e) Responsibilities.

(1) A COR assists in the technical monitoring or administration of a contract.

(2) The COR must maintain a file for each assigned contract. The file must include, at a minimum—

(i) A copy of the contracting officer's letter of designation and other documents describing the COR's duties and responsibilities; and

(ii) Documentation of COR actions taken according to the delegation of authority.

(a) Definitions.

As used in this section-

Ratification means the act of approving an unauthorized commitment by an official who has the authority to do so.

Unauthorized commitment means an agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government.

(b) Policy.

(1) Agencies should take actions to avoid the need for ratifications.

(2)

(i) The head of the contracting activity may ratify an unauthorized commitment, subject to the criteria in paragraph (c).

(ii) Agencies may delegate the authority to ratify an unauthorized commitment. Agencies cannot delegate this authority below the level of the chief of the contracting office.

(3) Unauthorized commitments which involve claims subject to resolution under 41 U.S.C. chapter 71, Contract Disputes, should be processed under subpart 33.2, Disputes and Appeals.

(c) Criteria. Agencies may use the authority in paragraph (b)(2) of this section only when—

(1) The Government accepted supplies or services from the contractor, or the Government received a benefit from performance of the unauthorized commitment;

(2) The ratifying official has the authority to enter into a contractual commitment

(3) The resulting contract would otherwise have been proper if made by an authorized contracting officer;

(4) The contracting officer reviewing the unauthorized commitment determines the price to be fair and reasonable;

(5) The contracting officer recommends payment and legal counsel concurs with the recommendation; and

(6) Funds are available and were available at the time the unauthorized commitment was made.

(d) Nonratifiable commitments. Actions that do not meet the criteria in paragraph (c) of this section may be subject to resolution according to 31 U.S.C. 3702, or as authorized by subpart 50.1.

Determination and findings (D&F) means a special form of written approval by an authorized official that is required by statute or regulation before taking certain contract actions.

The determination is a conclusion or decision supported by the findings. The findings are statements of fact or reasons essential to support the determination, and must cover each requirement of the statute or regulation.

(a)

(1)Ordinarily a D&F applies to an individual contract action. Unless otherwise prohibited, agencies may execute class D&Fs for classes of contract actions (see 1.503). The approval granted by a D&F is restricted to the proposed contract action(s) reasonably described in that D&F. D&Fs may provide for a reasonable degree of flexibility.

(2) Unless the D&F states otherwise, reasonable variations in estimated quantities or prices are permitted.

(b) When an option is anticipated, the D&F shall state the approximate quantity to be awarded at first and the extent of the increase the option permits.

(a) A class D&F provides authority for a class of contract actions. A class may consist of contract actions for the same or related supplies, services, or other contract actions that require essentially identical justification.

(b)

(1) The findings in a class D&F must fully support the proposed action either for the class as a whole or for each action. A class D&F must be for a specified period, with the expiration date stated in the document.

(2) When a solicitation has been furnished to prospective offerors before the expiration date, the authority under the D&F will continue until award of the contract(s) resulting from that solicitation.

(c) The contracting officer must ensure that individual actions taken under the authority of a class D&F are within the scope of the D&F.

At a minimum, each D&F must include the following information:

(a) Identification of the agency and the contracting activity and specific identification of the document as a Determination and Findings.

(b) Nature and/or description of the action being approved.

(c) Citation to the appropriate statute and/or regulation upon which the D&F is based.

(d) Findings that detail the particular circumstances, facts, or reasoning essential to support the determination. Necessary supporting documentation shall come from appropriate requirements and technical personnel.

(e) A determination based on the findings that the proposed action is justified under the applicable statute or regulation.

(f) For class D&Fs, an expiration date.

(g) The signature of the official authorized to sign the D&F (see 1.506) and the date signed.

(a)If a D&F is replaced by another D&F, that action will not invalidate any action taken under the original D&F before the date of its replacement.

The contracting officer is not required to cancel the solicitation if the modified D&F supports the contract action.

When a D&F is required, the appropriate official according to agency regulations must sign it. Authority to sign or delegate signature authority for the various D&Fs is shown in the applicable FAR part.