Government contractors have a lot to keep track of when it comes to managing their contracts. One of the most important and complex aspects is understanding the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS). The FAR and DFARS are two distinct yet related sets of regulations that govern the acquisition and management of government contracts. To help government contractors better understand the FAR and DFARS, this article will provide an overview of what they are, the differences between them, and how they affect contractors.
What is the Federal Acquisition Regulation (FAR)?
The FAR is a set of regulations issued by the federal government that governs all aspects of federal contracting. It serves as the primary source for federal government contracting policy and provides guidance to help agencies award contracts, manage their contracts, and ensure compliance with federal procurement laws. The FAR also establishes uniform policies regarding contractor qualifications, evaluation criteria, contract terms and conditions, contract types, and dispute resolution among other things.
The FAR is divided into 53 parts that cover everything from general topics related to contracting such as definitions and responsibilities to more specific areas such as competition requirements and small business programs. Each part is further divided into sections, subsections, paragraphs, clauses, subclauses, references, notes, and appendices. Subparts can be amended or revised at any time by the Federal Register.
What is the Defense Federal Acquisition Regulation Supplement (DFARS)?
The DFARS is a set of regulations issued by the Department of Defense (DoD) that supplements the FAR. The DFARS applies only to defense-related acquisitions made by DoD agencies. It provides additional rules and guidance on topics such as national security requirements, software rights in technical data or computer software, export control requirements, safety requirements for hazardous materials or supplies, security clearances for personnel handling classified information or materials.
Like the FAR, the DFARS is divided into parts which are further divided into sections. The DFARS updates certain provisions of the FAR that apply to DoD acquisitions in order to ensure compliance with DoD policies. These updates can include changes in policy or procedures or new requirements for DoD acquisitions not addressed in the FAR.
Difference Between FAR & DFARS
The main difference between the FAR and DFARS is that one applies to all federal agencies while the other applies only to DoD agencies. The FAR covers all aspects of federal contracting from definitions and responsibilities to more specific areas such as competition requirements and small business programs whereas the DFARS focuses more on additional rules relating to defense-related acquisitions.
The FAR is updated periodically through amendments published in the Federal Register while the DFARS is updated through changes in policy or procedures or new requirements for DoD acquisitions not addressed in the FAR.
How Does Understanding Far & Dfars Affect Contractors?
It’s important for government contractors to understand both sets of regulations so they can comply with them when entering into contracts with federal agencies. This includes understanding their respective roles under each set of regulations as well as learning how they impact their ability to do business with government agencies.
- FAR:
< li >< strong >Contract Types: Learn ing about th e variou s types o f contract s that ca n b e used unde r th e far .
< li >< strong >Competition Requirements: Understanding th e requiremen t s fo r fair & ; competitiv e bidding o n contract s unde r th e far .
< li >< strong >Small Business Programs: Understand ing th e small busines s program s an d how they appl y t o certai n type s o f contract s unde r th e far .
< p > Understanding both th e far &am p ; dfars als o hel p contractor s avoi d penalties fo r non-compliance . Contractor s mus t als o b e awar e o f changin g regulation s an d b e read y t o update th ei r practices accordin gly . Understanding both sets of regulations will help contractor s stay compliant an d successful i n workin g wit h governmen t agencies .
< h2 > Resources fo r Understanding th e Far &am p ; Dfars
< p > There ar e numerou s resource s availabl e fo r contractor s loo kin g t o bette r understand th e far &am p ; dfars , includin g :
< ul >
< li >< a href = “https://www.govcontract.tax/#start” target = “_blank” rel = “noopener noreferrer” >< strong > GovContractTax :< /a>, a tax management tool designed specifically for government contractors .
< li >< a href = “https://www.acquisition.gov/far” target = “_blank” rel = “noopener noreferrer” >< strong > Acquisition . gov :< /strong>< /a>, a website dedicated t o providin g informatio n abou t th e Far an d Othe r Sourcin g Legislation .
< li >< a href = “https://www.acqnotes.com/acqnote/guides/dfars” target = “_blank” rel = “noopener noreferrer” >< strong > AcqNotes :< /strong>< /a>, a website dedicated t o providin g informatio n abou t th e Dfars an d Othe r Sourcin g Legislation .
< li >< a href = “https://gcolegalcenter.law360.com/” target = “_blank” rel = “noopener noreferrer” >< strong > Law360 :< /strong>< /a>, a legal news source with comprehensive coverage on government contracting topics .