Overview
This section addresses the standard definitions used throughout Federal Acquisition Regulation (FAR) solicitations and contracts, primarily establishing FAR 2.101 as the default source for term meanings unless specific exceptions apply.
Key Rules
- Default Definition Source: Terms used in solicitations or contracts carry the same meaning as defined in FAR 2.101 at the time the solicitation was issued.
- Order of Precedence: Specific definitions provided in the solicitation, or those mutually agreed upon by the contracting parties, override the default FAR definitions.
- Contextual Exceptions: Definitions prescribed within specific FAR parts, subparts, or sections take precedence for clauses originating in those areas.
- Cost Principles: For matters involving cost principles and procedures, definitions found in FAR Part 31 supersede general definitions.
- Inflation Adjustments: Acquisition-related thresholds defined in the FAR are subject to dynamic adjustment for inflation under FAR 1.109; these updated thresholds apply throughout the remaining term of the contract.
Practical Implications
- Consistency: It ensures a uniform legal understanding of terms, reducing the risk of disputes regarding the interpretation of contract requirements.
- Due Diligence: Contractors must carefully review the solicitation for "different definitions" that might alter standard FAR meanings, and specifically monitor FAR Part 31 when dealing with cost-reimbursable contracts.