Federal Acquisition Regulation (FAR)

The Federal Acquisition Regulation (FAR) is the principal acquisition regulation of the United States government. Together with the regulations that individual agencies add to it, it forms the FAR System, which most U.S. federal agencies follow when they buy goods and services. The Trade Commissioner Service describes it as the foundation of U.S. federal contracting rules.

The FAR is a U.S. framework. It is not a Canadian or NATO regulation. Canadian suppliers meet it when they pursue U.S. government contracts, and it does not generally govern Government of Canada procurement.

What the FAR System covers

The FAR System consists of the FAR plus the agency regulations that supplement it. It covers the full contracting process: planning, soliciting, awarding, performing and closing out contracts. A solicitation issued by a U.S. agency incorporates FAR clauses, and often agency-specific clauses as well. Those clauses become part of the contract the supplier signs.

Procurement methods and thresholds in the FAR

The FAR sets out the rules for the different ways U.S. agencies buy. These include sealed bidding, negotiated procurements, simplified acquisition and micro-purchases, as described in the Trade Commissioner Service guidance on acquisitions, solicitations and contracts.

• Part 2 establishes the basic simplified-acquisition threshold, which the Trade Commissioner Service describes as US$150,000.
• Part 14 governs sealed-bidding solicitations.
• Part 15 contains the policies and procedures for negotiated procurements.

On the Trade Commissioner Service's information for contractors page, U.S. contracting officers must determine that an offer is responsive, that the contractor is responsible and that the proposed price is fair and reasonable.

DFARS and other agency supplements

Agency supplements add to the FAR rather than replace it. The Defense Federal Acquisition Regulation Supplement (DFARS) implements the FAR for the U.S. Department of Defense, so a Canadian supplier answering a U.S. defence solicitation can face both documents. Federal Highway Administration procurements generally follow FAR rules, with implementing instructions in the Department of Transportation Acquisition Regulation, according to the guidance on highway projects.

FAR requirements that affect Canadian suppliers

FAR provisions can bring U.S. domestic-preference, trade-agreement and national-security requirements into a contract. The Trade Commissioner Service guidance on defence contracts identifies restrictions that affect:

• defence goods
• vessels
• food, clothing and fibre
• small-business set-asides
• certain export-controlled or national-security procurements

A supplier must follow the FAR and agency clauses incorporated in the solicitation. It must also meet the stated eligibility, pricing, technical, certification and performance requirements.

What the FAR means for a supplier bidding on Canadian public contracts

Canadian federal procurement is guided by Canadian laws, regulations and Treasury Board policies, not generally by the FAR. Public Services and Procurement Canada is the main federal procurement arm, and CanadaBuys is the official source for federal tender and award notices. Descriptions of the process are on the how government buys page and the supplying services page. A bid team responding to a Government of Canada solicitation reads the Canadian solicitation documents. It turns to the FAR only when it pursues a U.S. federal opportunity.