Overview
FAR 2.101 provides a centralized glossary of terms and definitions used throughout the Federal Acquisition Regulation to ensure uniform interpretation and application across all executive agencies. It establishes the foundational language for the entire procurement lifecycle, from the initial identification of an agency's needs to final contract administration.
Key Rules
- Uniformity of Meaning: Definitions in this section apply to the entire FAR unless a specific part, subpart, or section provides a different definition. If a term is defined differently elsewhere, this section includes a cross-reference to that specific definition.
- The Scope of "Acquisition": Acquisition is defined as a comprehensive process that begins when agency needs are established. It is not limited to the purchase itself but includes requirement description, solicitation, selection, award, financing, performance, and administration.
- Commercial Items Framework: The section provides distinct criteria for "Commercial Products," "Commercial Services," and "Commercially Available Off-the-Shelf (COTS)" items. Notably, a product can remain "commercial" even with "minor modifications" intended for government use, provided those modifications do not alter the item's essential physical characteristics or purpose.
- Claims and Certification: A "claim" is a formal written demand for relief or payment. Crucially, any contractor demand for payment exceeding $100,000 is not legally considered a "claim" under the Contract Disputes Act until it is certified as accurate and complete.
- Bundling Restrictions: "Bundling" is defined as the consolidation of two or more requirements previously performed under smaller contracts into a single solicitation that is likely unsuitable for small business participation. This definition serves as a regulatory trigger for oversight to protect small business interests.
- Advisory and Assistance Services: These are subdivided into three specific categories: management and professional support services; studies, analyses, and evaluations; and engineering and technical services.
Practical Implications
- Legal Precision: Contractors and Contracting Officers (COs) must rely on these regulatory definitions rather than "plain English" or dictionary meanings, as these terms determine the applicability of specific clauses and legal obligations.
- Streamlined Procurement: Proper classification of a "Commercial Product" or "COTS" item allows the government to use Part 12 procedures, which reduces the regulatory burden on the contractor and simplifies the solicitation process.
- Risk Management: Understanding the definition of "Certified Cost or Pricing Data" is critical for contractors in high-value negotiations, as providing inaccurate data under this definition can lead to significant legal and financial penalties under the Truth in Negotiations Act (TINA).