← All Free ToolsGo back to previous tools page
Explore More Tools →
section1.102

Statement of guiding principles for the Federal Acquisition System

Overview

This section establishes the foundational philosophy and vision for the Federal Acquisition System, emphasizing the delivery of "best value" products and services through a collaborative, team-based approach. It prioritizes customer satisfaction, integrity, and the fulfillment of public policy objectives while encouraging innovation and professional judgment.

Key Rules

  • The Vision: The system must deliver timely, best-value products/services to the customer while maintaining public trust and fulfilling public policy goals.
  • The Acquisition Team: Broadly defined to include not only procurement, technical, and supply professionals, but also the customers served and the contractors who provide the goods and services.
  • Performance Standards: The system is mandated to satisfy the customer regarding cost, quality, and timeliness by maximizing commercial product use, promoting competition, and selecting contractors based on past performance.
  • The "Rule of Silence" (FAR 1.102-4(e)): If a specific strategy or practice is in the best interest of the Government and is not prohibited by law, Executive order, or regulation, members of the Team should assume it is permitted.
  • Risk Management: The system explicitly shifts focus from "risk avoidance" to "risk management," acknowledging that attempting to eliminate all risk is prohibitively expensive.
  • Delegation of Authority: Decision-making authority and accountability are to be delegated to the lowest level possible within the system.
  • Communication with Industry: Government personnel are encouraged to engage in early, responsible, and constructive exchanges with industry to determine marketplace capabilities.

Practical Implications

  • This section provides the legal "green light" for Contracting Officers to innovate and exercise sound business judgment in scenarios where the FAR does not provide specific direction.
  • It transforms the government-contractor relationship from an adversarial one into a collaborative partnership, emphasizing that contractors are essential members of the Acquisition Team.

Need help?

Get FAR guidance, audit prep support, and proposal insights from the AudCor team.

Talk to an expert