1. 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

2. 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-

3. 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

4. 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

5. 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: Leads you to
Part 45 – Government Property – look for language that applies to educational institutions

6. 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)

7. 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

8. 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”

9. 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

10. 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

11. 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

12. 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

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

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

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

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