Federal Acquisition Regulation

The Federal Acquisition Regulation (FAR) is the principal set of rules in the Federal Acquisition Regulation System. This system consists of sets of regulations issued by agencies of the federal government of the United States to govern what is called the "acquisition process"; this is the process through which the government purchases ("acquires") goods and services. That process consists of three phases: (1) need recognition and acquisition planning, (2) contract formation, and (3) contract administration. The FAR System regulates the activities of government personnel in carrying out that process. It does not regulate the purchasing activities of private sector firms, except to the extent that parts of it are incorporated into government solicitations and contracts by reference.

The FAR is codified in Title 48 of the United States Code of Federal Regulations. It is issued pursuant to the Office of Federal Procurement Policy Act of 1974 (Pub. L. 93-400 and Title 41 of the United States Code), Chapter 7. Statutory authority to issue and maintain the FAR resides with the Secretary of Defense, the Administrator of General Services, and the Administrator, National Aeronautics and Space Administration, 41 U.S.C. § 421(c)(1), subject to the approval of the Administrator of Federal Procurement Policy, 41 U.S.C. § 405.

The largest single part of the FAR is Part 52, which contains standard contract clauses and "solicitation provisions." Solicitation provisions are certifications, notices, and instructions for firms that plan to compete for a specific contract. Many contract clauses incorporate parts of the FAR into government contracts by reference, by which means they impose FAR rules on contractors. If the FAR requires that a clause which addresses an important topic be included in a government contract, and if the government's acquisition personnel omit the clause without authorization, the agency boards of contract appeals and the Federal courts may interpret the contract as though the clause were, in fact, included. This is done pursuant to a legal doctrine known as the Christian Doctrine, which is based on the underlying principle that government regulations have the force and effect of law, and government personnel may not deviate from the law without proper authorization. The boards and courts charge prospective contractors with knowing what the law requires and knowing the limitations of the authority of government acquisition personnel.

The single most heavily regulated aspect of acquisition is contract pricing, which is addressed throughout the FAR, but especially in Subpart 15.4, Parts 30 and 31, and Subparts 42.7, 42.8, and 42.17. A large part of the FAR, Subchapter D, describes various socio-economic programs, such as the various small business programs, purchases from foreign sources, and laws written to protect laborers and professionals working under government contracts.

The FAR and its agency supplements are said by the federal courts to have "the force and effect of law," see Davies Precision Machining, Inc. v. U.S., 35 Fed. Cl. 651 (1995). Nearly all government agencies are required to comply with the FAR. However, some agencies are exempt (e.g., the Central Intelligence Agency, the United States Postal Service, the Tennessee Valley Authority, the Federal Aviation Administration, and the Bonneville Power Administration); in those cases, the agency promulgates its own specific procurement rules.