Federal Acquisition Regulation (FAR)

Definition

The Federal Acquisition Regulation (FAR) is the primary set of rules governing the federal government's acquisition process. Issued jointly by DoW, GSA, and NASA under the authority of the Office of Federal Procurement Policy, the FAR is codified at 48 CFR Chapter 1. It is organized into 53 parts covering everything from contract formation (Parts 13–17) to socioeconomic programs (Part 19), contract administration (Part 42), and specific clauses (Part 52). Agency supplements like DFARS, AFARS, and HHSAR implement and add to the FAR for specific buyers.

Why It Matters

Fluency with the FAR is the single highest-leverage skill in federal contracting. Many proposal and performance problems reduce to a FAR clause the contractor did not understand or implement. Knowing where key clauses live — FAR Part 52's clause library, FAR 15.3 on evaluation, FAR 31.2 on cost principles, FAR 49 on terminations — is the baseline competency for proposal managers, PMs, contract administrators, and executives.

Example

A small business is surprised by a cost-accounting question during negotiations. A quick check of FAR 52.230-5 shows that the firm is exempt from CAS under the modified coverage threshold, resolving the concern in one meeting.

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