FAR (Federal Acquisition Regulation)

What Is the Federal Acquisition Regulation (FAR)?

The Federal Acquisition Regulation (FAR) is the primary set of rules governing how the federal government acquires goods and services. It establishes uniform policies, procedures, and guidelines that all executive agencies must follow when contracting. When contractors in the GovCon space refer to “FAR,” they are talking about the authoritative framework for government procurement.

For newcomers asking “what is Federal Acquisition Regulation?”, it is essentially the rulebook for federal contracting. FAR ensures fairness, transparency, and accountability in how taxpayer dollars are spent on government contracts.

FAR 2.101: Key Definitions

One of the most important sections is FAR 2.101, which provides official definitions for terms used throughout the regulation. Understanding FAR 2.101 is essential because it clarifies language that applies across all parts of the FAR. For example, terms like “contract,” “acquisition,” “commercial item,” and “contracting officer” are standardized here, ensuring consistency across agencies.

Contractors should become familiar with Federal Acquisition Regulation FAR Part 2.101 early in their GovCon journey, as it lays the foundation for compliance.

FAR and Contractor Responsibilities

The FAR federal acquisition regulation outlines not just how the government buys, but also what contractors must do to remain compliant. For instance, there are FAR accounting requirements that dictate how companies must track costs, report financial data, and maintain records to qualify for government work. Noncompliance can lead to disqualification or contract termination.

Contractors should also be aware of agency supplements like the Defense Federal Acquisition Regulation Supplement (DFARS or FARS federal acquisition), which add rules specific to the Department of Defense.

Accessing the FAR

The full text is publicly available in both digital and printable formats, such as the FAR Federal Acquisition Regulation PDF, which is updated regularly. Contractors should always verify they are working with the most current version, since updates can affect eligibility, compliance, and bid strategy.

Why FAR Matters in GovCon

• Provides standardized rules across federal agencies.
  
  

• Establishes transparency and fairness in the contracting process.
  
  

• Defines critical terms in FAR 2.101 that affect compliance.
  
  

• Outlines FAR accounting requirements that contractors must follow.
  
  

• Serves as the baseline for supplements like DFARS.

Takeaways

The FAR (Federal Acquisition Regulation) is the backbone of U.S. government contracting. From FAR 2.101 definitions to compliance requirements, understanding and applying FAR is essential for contractors who want to compete and succeed in the federal marketplace.