Overview
Subpart 2.2 establishes the requirement for incorporating a standardized definitions clause into government solicitations and contracts. It ensures that terms used throughout the acquisition process have consistent legal meanings as defined in the Federal Acquisition Regulation (FAR).
Key Rules
- Mandatory Insertion: The Contracting Officer must insert the clause at FAR 52.202-1, Definitions, into solicitations and contracts.
- Applicability Threshold: This requirement applies specifically to acquisitions that exceed the simplified acquisition threshold (SAT) (currently $250,000 in most cases, though subject to change).
- Standardization: The clause incorporates by reference the definitions found in FAR Part 2, ensuring that both the government and the contractor operate under a unified vocabulary.
Responsibilities
- Contracting Officers (CO):
- Responsible for identifying if the estimated value of the acquisition exceeds the SAT.
- Must ensure the inclusion of FAR 52.202-1 in the appropriate section of the solicitation (typically Section I) and the resulting contract.
- Legal/Contract Reviewers:
- Responsible for verifying that mandatory clauses based on dollar thresholds are present during the pre-award review process.
Practical Implications
- Conflict Prevention: By including the Definitions clause, the parties reduce the risk of litigation or disputes regarding the meaning of technical or administrative terms used in the contract.
- Efficiency in Documentation: Instead of defining common terms (like "Agency Head" or "Contracting Officer") within every individual contract, the clause allows the FAR to serve as the master glossary.
- Threshold Awareness: Contractors bidding on mid-to-large scale projects should expect this clause as a standard fixture. Conversely, for micro-purchases or acquisitions below the SAT, the absence of this clause means the parties may need to rely on common usage or specific definitions explicitly written into the Statement of Work (SOW).