Overview
Subpart 1.1 establishes the foundation of the Federal Acquisition Regulations System, defining its purpose as the primary source of uniform policies and procedures for all executive agencies. It outlines the guiding principles of the system, which prioritize delivering the "best value" to the taxpayer through a collaborative, innovative, and ethical Acquisition Team.
Key Rules
- Uniformity and Supplementation: The FAR is the primary document for federal acquisition; while agencies may issue their own supplements, they must be consistent with the FAR.
- The Permissive Principle (FAR 1.102-5(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, the Acquisition Team should assume it is permitted.
- Best Value: Decisions must balance cost, quality, and timeliness to provide the best value to the customer (the taxpayer), rather than simply seeking the lowest price.
- Industry Engagement: Early and constructive communication with industry is explicitly encouraged to determine marketplace capabilities, provided it does not create an unfair competitive advantage.
- Dollar Thresholds: Unless stated otherwise, dollar thresholds for the applicability of rules include the value of all contract options.
- Certifications: New requirements for contractor certifications are strictly limited and cannot be included unless mandated by statute or approved by the Administrator for Federal Procurement Policy.
- Inflation Adjustments: Most statutory acquisition-related dollar thresholds are reviewed and adjusted for inflation every five years.
Responsibilities
- The Acquisition Team (COs, Technical Experts, Customers, and Contractors): Responsible for working collaboratively, exercising personal initiative, and using sound business judgment to meet the customer's needs.
- Contracting Officers (CO):
- Act as the lead for business process innovations.
- Hold the authority to determine the application of rules to specific contracts.
- Assume responsibility for any "imperative sentence" in the FAR (e.g., "Prepare the report") unless another party is specifically named.
- Secretary of Defense, Administrator of GSA, and Administrator of NASA: Jointly responsible for preparing, issuing, and maintaining the FAR.
- Agencies: Encouraged to seek voluntary feedback from industry (via "Acquisition 360" surveys) to evaluate and improve their internal processes.
Practical Implications
- Innovation is Protected: The "Permissive Principle" serves as a "safe harbor" for Contracting Officers who want to try new procurement methods that aren't specifically detailed in the FAR, as long as they aren't illegal.
- Risk Management over Risk Avoidance: The FAR explicitly directs the workforce to shift away from "risk avoidance" (which is expensive and slow) toward "risk management," acknowledging that the government must accept some level of risk to empower local decision-makers.
- Communication is Mandatory: Contractors should view the "Early Exchange" rules as an open door to engage with program managers and COs during the market research phase without fear of violating procurement integrity rules.
- Interpretive Conventions: When reading the FAR, users must remember that the absence of a "shall not" effectively functions as a "may," providing significant flexibility in how a contract is structured or negotiated.