Introduction to the Federal Acquisition Regulations FAR Basic

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 2 - 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 • 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