Overview
FAR 1.108 establishes the fundamental rules of construction and interpretation for the Federal Acquisition Regulation, defining how language, authority, and financial thresholds are consistently applied throughout the document.
Key Rules
- Definitions: FAR Part 2 definitions apply globally unless a specific part or section provides a localized definition; undefined terms retain their standard dictionary meanings.
- Delegation of Authority: Any authority granted by the FAR is delegable unless the text specifically prohibits delegation.
- Dollar Thresholds: Applicability thresholds are calculated based on the total anticipated value of the action, including the value of all options and the highest potential priced alternative.
- Effective Dates: New FAR changes apply to solicitations issued on or after the effective date. Contracting officers may optionally apply changes to older solicitations or existing contracts, provided they receive appropriate consideration for contract modifications.
- Citations: References to statutes, Executive orders, or other regulations automatically incorporate all subsequent amendments unless otherwise noted.
- Imperative Sentences: When the FAR uses a command (imperative sentence), the Contracting Officer is the party responsible for the action unless another individual is specifically named.
Practical Implications
- Contractors and government personnel must evaluate the "total potential value" (base plus all options) when determining if a contract meets the threshold for specific requirements, such as Small Business Subcontracting Plans or Certified Cost or Pricing Data.
- The delegation rule ensures that administrative actions can move forward through authorized representatives (like CORs or ACOs) unless the FAR explicitly restricts a power to the Head of the Contracting Activity or the Agency Head.