Overview
FAR Subpart 1.3 establishes the authority and procedures for Federal agencies to issue their own acquisition regulations that implement or supplement the FAR. It ensures that while agencies can tailor the procurement process to their specific needs, these supplemental rules remain consistent with government-wide policy, follow standardized formatting, and are subject to public oversight when necessary.
Key Rules
- Implementation vs. Supplementation: Agency regulations may "implement" the FAR (provide specific internal procedures for a FAR requirement) or "supplement" it (add new policies or clauses to meet specific agency needs).
- Public Comment Requirement: Agencies must publish proposed regulations in the Federal Register for public comment if the rules have a significant effect beyond internal operations or impose a significant cost/administrative impact on contractors.
- Codification Standards: Agency-wide regulations must be codified in Title 48 of the Code of Federal Regulations (CFR) and must mirror the FAR’s numbering and arrangement system.
- The "70 and Up" Rule: When an agency creates supplemental material that has no direct counterpart in the FAR, it must use section numbers "70" or higher (e.g., Subpart 1401.70) to distinguish it from standard FAR numbering.
- Non-Duplication: Agency regulations are prohibited from unnecessarily repeating, paraphrasing, or restating FAR text. They must also not conflict with the FAR unless a formal deviation is authorized.
- Regulatory Compliance: Agencies must comply with the Paperwork Reduction Act and the Regulatory Flexibility Act when issuing acquisition regulations to ensure they are not creating undue administrative burdens.
Responsibilities
- Agency Heads: Responsible for authorizing the issuance of agency acquisition regulations and establishing procedures for public comment in the Federal Register.
- Secretary of Defense, NASA Administrator, and GSA Administrator: Hold the ultimate authority for the issuance of regulations within the military departments, NASA, and civilian agencies, respectively.
- Agencies (General): Must evaluate their specific regulatory coverage to determine if it has government-wide applicability; if it does, they are responsible for recommending that the coverage be moved into the FAR itself rather than remaining agency-specific.
- Internal Oversight Bodies: Must establish formal procedures to review local directives to ensure they do not "restrain the flexibilities" provided to Contracting Officers by the FAR.
Practical Implications
- The "Dual-Read" Requirement: For contractors, this subpart means that complying with the FAR is often not enough. One must also read the specific agency supplement (e.g., DFARS for Defense, GSAM for GSA, or VAAR for Veterans Affairs) to ensure compliance with agency-specific clauses and forms.
- Standardization of Numbering: Because agency supplements must parallel the FAR numbering, a contractor can easily find an agency’s specific implementation of a rule. For example, if you are looking for an agency's specific policy on "Protests," you would look at the agency's version of Part 33.
- Protection Against "Shadow" Rules: This subpart protects contractors from "local" rules that haven't been vetted. If an agency issues a directive that significantly impacts a contractor's costs without a public comment period, it may be in violation of FAR 1.301(b).
- Efficiency: By prohibiting the paraphrasing of the FAR, this subpart reduces the volume of text contractors must review, forcing agencies to only publish what is truly unique or necessary for their mission.