FAR stands for Federal Acquisition Regulation. Since April 1, 1984, FAR has been the principal regulation used by government agencies to procure goods and services with appropriated funds.
Federal Acquisition Regulation is codified in Chapter 1 of Title 48 of the Code of Federal Regulations, 48 CFR 1. Most contracts issued by the US Military, NASA, and federal agencies are regulated by FAR. The uniform policies and procedures established by FAR provide a roadmap for federal agencies to use when purchasing goods and services. FAR spells out which costs the government can cover – allowable costs, and which costs the government cannot cover – unallowable costs. This transparency ensures fairness in the government contracting process.
This set of rules and guidelines was established by the U.S. federal government to govern the acquisition process for government agencies. The FAR provides policies and procedures for various aspects of government contracting, including acquisition planning, contract formation, pricing, contract administration, and contract closeout.
The FAR is designed to ensure that government procurement is conducted in a fair and transparent manner, promoting competition and preventing favoritism or fraud. It outlines the requirements that both government agencies and contractors must follow when engaging in federal procurement activities.
The FAR is a comprehensive document that covers a wide range of topics, including solicitation and evaluation of proposals, negotiation and award of contracts, subcontracting, and the rights and obligations of both the government and contractors. It is regularly updated and revised to incorporate changes in laws, regulations, and best practices in federal procurement.
Contractors doing business with the U.S. federal government are expected to be familiar with the FAR and comply with its requirements. The FAR is an essential resource for government contracting professionals, providing a standardized framework for acquiring goods and services on behalf of the federal government.
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