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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 ). It is prepared, issued, and maintained jointly by the Secretary of Defense, the Administrator of General Services, and the Administrator, National Aeronautics and Space Administration (48 CFR 1.103). Nearly all government agencies are required to use FAR. However, some agencies are exempt from its use; an example is the United States Postal Service which issues its own Purchasing Manual. FAR STRUCTURE The FAR is divided into 53 parts, organized into eight Subchapters numbered A through H. Each part is then divided into subparts, sections, and subsections, with further divisions below the subsection level. When a FAR provision is referenced, the subchapters and subparts are ignored. As an example, the regulations regarding lobbying costs is FAR Part 31, Section 205, subsection 22 (referenced as FAR 31-205.22). The subchapters and parts are briefly referenced below:
FAR SUPPLEMENTS As the original purpose of the FAR was to consolidate the numerous individual agency regulations into one comprehensive set of standards which would apply government-wide, officially individual agencies are discouraged from issuing supplemental regulations. However, nearly every major cabinet-level department (and many agencies below them) have issued such regulations, which often place further restrictions or requirements on contractors. One of the best-known examples of an agency supplement is the ''Defense Federal Acquisition Regulation Supplement'' (or '''DFARS'''), which is used by the Department Of Defense . The most common format for agency FAR supplements is to follow the basic FAR format. To continue the example above, the companion DFARS section on lobbying costs is DFARS Subpart 231, Section 205, Subsection 22 (referenced as DFARS 231.205-22). PURPOSE OF FAR The purpose of the FAR is to specify exactly how the government is to acquire a particular product or service, how it is to be judged in terms of quality and price, and to ensure the government does not pay for certain prohibited practices (such as the costs of lobbying), and to prevent Kickback s, undue influence, Corruption and other Misconduct . The FAR also includes socioeconomic requirements, such as for certain items to be required to be purchased from United States firms only and for large organizations to use smaller businesses (specifically small disadvantaged businesses, those being woman-owned and/or minority-owned) as subcontractors. When a government agency issues a contract or a proposal, it will specify a list of FAR provisions that apply to that contract, which may be numerous. In order to be awarded a contract, a bidder must either comply with the provisions, demonstrate that it will be able to comply with them at the time of award, and/or claim an exemption from them. As an example, Part 30 (which references Cost Accounting Standards) allows for small businesses to be exempt from those requirements; if the bidder can demonstrate that it meets the small business criteria, Part 30 would then not apply. In many cases, a contract award can be challenged and set aside if a challenger can prove that either the contracting agency and/or the successful bidder did not comply with the contract solicitation requirements, usually so that the challenger can either be awarded the contract in lieu of the original bidder's award of the contract or get another shot at a bid. CRITICISMS Many have suggested that the complexity of complying with the FAR discourages competition, especially by small companies. SEE ALSO EXTERNAL LINKS |
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