Federal Acquisition Regulation

What is the Federal Acquisition Regulation?

The Federal Acquisition Regulation (FAR) is the primary set of rules governing the acquisition process used by all U.S. federal executive agencies. It establishes uniform policies and procedures for federal government procurement of goods and services, ensuring fairness, transparency, and value for taxpayers.

FAR applies to federal agencies, contractors, and subcontractors engaged in government contracts. It is maintained jointly by the Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).

Why FAR Matters

The FAR is essential because it:

  • Standardizes procurement practices across all federal agencies

  • Ensures competition and fairness in awarding contracts

  • Promotes integrity in government contracting

  • Protects taxpayer money through accountability and efficiency

  • Establishes compliance requirements for contractors and subcontractors

Key Components of FAR

  1. Contract Formation – Rules for solicitation, evaluation, and award of contracts

  2. Contract Administration – Performance monitoring, reporting, and dispute resolution

  3. Socio-economic Programs – Provisions supporting small businesses, minority-owned businesses, and environmental initiatives

  4. Cost Principles & Procedures – Guidance on pricing, cost allowability, and auditing

  5. Compliance Requirements – Ethics, reporting obligations, and labor standards for contractors

Example of FAR in Practice

A technology company bidding on a federal IT contract must follow FAR rules on proposal submission, pricing transparency, cybersecurity requirements, and subcontractor compliance. Failure to comply with FAR can result in disqualification, penalties, or contract termination.

FAR vs. DFARS

  • FAR – Applies to all federal agencies and contractors.

  • DFARS (Defense Federal Acquisition Regulation Supplement) – A supplement to FAR that applies specifically to Department of Defense contracts.

How VComply Can Help

VComply enables organizations to stay compliant with FAR by:

  • Mapping FAR requirements to internal policies and workflows

  • Centralizing documentation for audits and contract reviews

  • Automating monitoring of contractor and subcontractor compliance

  • Tracking corrective actions for identified gaps

  • Providing dashboards for real-time visibility into compliance status

With VComply, government contractors can reduce compliance risks, streamline reporting, and ensure consistent adherence to FAR requirements.