Introduction to the Federal Acquisition Regulations - FAR Basic regulations are used by all federal agencies in their acquisition of supplies and services “Contracting by regulations” – 90% or more of the clauses in government contracts are prescribed by regulation All branches of the government influence the FAR 53 Parts 32,000 + pages

Where can the FAR be found? Printed materials- Federal Register Code of Federal Regulations (CFR)– Title 48 CFR includes the FAR, its supplements and the regulations of the Cost Accounting Standards Board Internet- http://www.arnet.gov/far http://hydra.gsa.gov/far/current/html/toc.html

FAR – What does it do? Establishes uniform policies and procedures for acquisition by all federal agencies Satisfies the government’s needs as a consumer Minimizes administrative costs Upholds the government's integrity as a market participant Fulfills public policy objectives of Congress and the President

FAR – What does it look like? Table of Content – just the basics Parts (Parts 1-51) Clauses (Part 52) Provision and Clause Matrix Forms (Part 53) Topical Index

FAR- What will appear in our contracts and how do we interpret what we see? Each clause reads: 52.2__-___ “52” – tells you this is the clause section of the FAR - place holder (I am unaware of any further explanation of this digit) __ - next two numbers identify the part of the FAR where you will find the specific material on your subject matter Ex: 52.245-5 - Leads you to Part 45 – Government Property – look for language that applies to educational institutions

FAR – Types of Contracts Selecting the type of contract is generally a matter for negotiation and requires sound judgment and acknowledgeable participants Two broad categories of contracts commonly used Fixed price (Subpart 16.2) Cost reimbursable (Subpart 16.3)

FAR – Fixed Price Provides for a firm price – used when acquiring commercial items Many subtypes available to contracting officer Examples: Firm fixed price – contractor has full responsibility for the performance costs and resulting profits (or loss), and assumption of risk Cost plus fixed fee – contractor has minimal responsibility for performance costs and the negotiated fee is fixed No fee can be charged for non-profits

FAR - Cost Reimbursable Provides for payment of allowable incurred costs to the extent prescribed in the contract establishes an estimate of total costs for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed without approval Work to “best efforts”

FAR – Other types of contracts Incentive contracts Indefinite-delivery contracts Time and materials contracts Labor hour contracts Letter Contracts Agreements Basic Ordering Agreements Basic Agreements

FAR - Uniform Contract Format What are the basic parts of a government contract? Part I – Schedule A – Solicitation/Contract B - Supplies or services and prices C – Description/Specifications D – Packaging and marking E - Inspection and Acceptance F – Deliveries or performance G – Contract Administrative data H – Special contract requirements

FAR - Uniform Contract Format What are the basic parts of a government contract? Part II – Contract Clauses I – Contract Clauses Part III – List of Documents, Exhibits and Other Attachments J – List of Documents, Exhibits and Other Attachments

FAR - Uniform Contract Format What are the basic parts of a government contract? Part IV – Representations and Instructions K – Representations and certifications and other statements of bidders L – Instructions, conditions and notices to bidders M – Evaluation factors for award

FAR – Some Key Parts Small Business Programs – Part 19 Patent Rights – Part 27 Contract Cost Principles and Procedures – Part 31 Clauses – Part 52

FAR Part 31 Contract Cost Principles and Procedures FAR Subpart 31.3 – Cost Principles of Educational Institutions Leads us back to A-21

FAR Part 52 Clauses Clauses that frequently appear in our contracts and/or subcontracts FAR 52.216-7 – Allowable cost and payment – Subpart 31.3 should be used and/or substituted FAR 52.227-11 – Patent Rights (Short Form) FAR 52.227-14 – Data Rights – try to include Alternate IV FAR 52.245-5 – Government Property – use Alternative 1

FAR Part 52 Clauses (cont.) FAR 52.246-9 – Inspection of Research and Development (Short Form) - most desirable FAR 52.249-5 – Termination for Convenience of the Government