Overview
FAR Subpart 2.1 provides the foundational terminology and standardized definitions used throughout the Federal Acquisition Regulation (FAR). Its primary purpose is to ensure uniform interpretation of legal and procedural terms across all executive agencies involved in the acquisition process.
Key Rules
- Uniformity of Terms: Definitions in this subpart apply throughout the FAR unless a specific part, subpart, or section provides a different definition for a specific context.
- Commerciality Criteria: For a product to be considered a "commercial product," it must be of a type customarily used by the general public or non-governmental entities and have been sold or offered for sale to the public.
- Minor Modifications: Commercial products remain "commercial" even with minor modifications made to meet Government requirements, provided the modification does not significantly alter the item’s nongovernmental function.
- Certified Cost or Pricing Data: Data must be certified as accurate, complete, and current as of a date certain before contract award for specific procurements (per 10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).
- Claim Certification: Any contractor-written demand seeking more than $100,000 is not legally considered a "claim" under the Contract Disputes statute until it is formally certified.
- Bundling Restrictions: The government must justify "bundling"—combining two or more requirements previously performed by small businesses into a single large contract—if it is likely to be unsuitable for small business award.
Responsibilities
- Contracting Officers (CO): Responsible for issuing "Change Orders" (unilateral written directions), determining "Best Value," and evaluating whether modifications to commercial products are "minor."
- Agency Heads: The chief officials (e.g., Secretary, Administrator) responsible for the overall acquisition functions of their respective executive agencies.
- Chief Acquisition Officer (CAO): An executive-level official responsible for the agency's acquisition performance and program management.
- Contractors: Responsible for certifying cost or pricing data and providing formal certification for claims exceeding $100,000.
- General Services Administration (GSA) & Department of Defense (DoD): Responsible for assigning Activity Address Codes (AAC) to identify specific agency offices and units.
Practical Implications
- Early Acquisition Planning: Because the definition of "Acquisition" begins at the point when agency needs are established, project managers must integrate acquisition planning long before a solicitation is drafted.
- Scope Management: The definition of a "Change Order" clarifies that the CO can direct changes without contractor consent, but only if those changes fall within the scope of the "Changes" clause.
- Commercial Off-the-Shelf (COTS) Advantages: By classifying an item as COTS (a subset of commercial products), agencies can often streamline the procurement process, as these items are sold in the marketplace without modification.
- Dispute Resolution: Understanding the strict definition of a "Claim" (including the $100,000 certification threshold) is critical for contractors seeking legal recourse or payment adjustments to ensure their demands are recognized by the Board of Contract Appeals or the Court of Federal Claims.