### FAC 9702 OCTOBER 10, 1997

### FEDERAL ACQUISITION REGULATION

### General Structure and Subparts

## Subchapter A--General

Part 1--Federal Acquisition Regulations System

1.1 Purpose, Authority, Issuance

1.2 Administration

1.3 Agency Acquisition Regulations

1.4 Deviations from the FAR

1.5 Agency and Public Participation

1.6 Career Development, Contracting Authority, and Responsibilities

1.7 Determinations and Findings

### Part 2--Definitions of Words and Terms

2.1 Definitions

2.2 Contract Clause

### Part 3--Improper Business Practices and Personal Conflicts of Interest

3.1 Safeguards

3.2 Contractor Gratuities to Government Personnel

3.3 Reports of Suspected Antitrust Violations

3.4 Contingent Fees

3.5 Other Improper Business Practices

3.6 Contracts with Government Employees or Organizations Owned or Controlled by Them

3.7 Voiding and Rescinding Contracts

3.8 Limitation on the Payment of Funds to Influence Federal Transactions

3.9 Whistleblower Protections for Contractor Employees

### Part 4--Administrative Matters

4.1 Contract Execution

4.2 Contract Distribution

4.3 Paper Documents

4.4 Safeguarding Classified Information Within Industry

4.5 Electronic Commerce in Contracting

4.6 Contract Reporting

4.7 Contractor Records Retention

4.8 Government Contract Files

4.9 Information Reporting to the Internal Revenue Service

4.10 Contract Line Items

## Subchapter B--Competition and Acquisition Planning

### Part 5--Publicizing Contract Actions

5.1 Dissemination of Information

5.2 Synopses of Proposed Contract Actions

5.3 Synopses of Contract Awards

5.4 Release of Information

5.5 Paid Advertisements

### Part 6--Competition Requirements

6.1 Full and Open Competition

6.2 Full and Open Competition after Exclusion of Sources

6.3 Other Than Full and Open Competition

6.4 Sealed Bidding and Competitive Proposals

6.5 Competition Advocates

### Part 7--Acquisition Planning

7.1 Acquisition Plans

7.2 Planning for the Purchase of Supplies in Economic Quantities

7.3 Contractor Versus Government Performance

7.4 Equipment Lease or Purchase

7.5 Inherently Governmental Functions

### Part 8--Required Sources of Supplies and Services

8.1 Excess Personal Property

8.2--8.3 [Reserved]

8.4 Federal Supply Schedules

8.5 Acquisition of Helium

8.6 Acquisition from Federal Prison Industries, Inc.

8.7 Acquisition from Nonprofit Agencies Employing People Who Are Blind or Severely Disabled

8.8 Acquisition of Printing and Related Supplies

8.9 Financial Management Systems Software (FMSS) Mandatory Multiple Award Schedule (MAS) Contracts Program

8.10 [Reserved]

8.11 Leasing of Motor Vehicles

### Part 9--Contractor Qualifications

9.1 Responsible Prospective Contractors

9.2 Qualifications Requirements

9.3 First Article Testing and Approval

9.4 Debarment, Suspension, and Ineligibility

9.5 Organizational and Consultant Conflicts of Interest

9.6 Contractor Team Arrangements

9.7 Defense Production Pools and Research and Development Pools

### Part 10--Market Research

### Part 11--Describing Agency Needs

11.1 Selecting and Developing Requirements Documents

11.2 Using and Maintaining Requirements Documents

11.3 Acceptable Material

11.4 Delivery or Performance Schedules

11.5 Liquidated Damages

11.6 Priorities and Allocations

11.7 Variation in Quantity

11.8 Testing

### Part 12--Acquisition of Commercial Items

12.1 Acquisition of Commercial Items--General

12.2 Special Requirements for the Acquisition of Commercial Items

12.3 Solicitation Provisions and Contract Clauses for the Acquisition of Commercial Items

12.4 Unique Requirements Regarding Terms and Conditions for Commercial Items

12.5 Applicability of Certain Laws to the Acquisition of Commercial Items

12.6 Streamlined Procedures for Evaluation and Solicitation for Commercial Items

## Subchapter C--Contracting Methods and Contract Types

### Part 13--Simplified Acquisition Procedures

13.1 Procedures

13.2 Actions At or Below the Micro-Purchase Threshold

13.3 Simplified Acquisition Methods

13.4 Fast Payment Procedure

13.5 Test Program for Certain Commercial Items

### Part 14--Sealed Bidding

14.1 Use of Sealed Bidding

14.2 Solicitation of Bids

14.3 Submission of Bids

14.4 Opening of Bids and Award of Contract

14.5 Two-Step Sealed Bidding

### Part 15--Contracting by Negotiation

15.1 Source Selection Processes and Techniques

15.2 Solicitation and Receipt of Proposals and Information

15.3 Source Selection

15.4 Contract Pricing

15.5 Preaward, Award, and Postaward Notifications, Protests, and Mistakes

15.6 Unsolicited Proposals

### Part 16--Types of Contracts

16.1 Selecting Contract Types

16.2 Fixed-Price Contracts

16.3 Cost-Reimbursement Contracts

16.4 Incentive Contracts

16.5 Indefinite-Delivery Contracts

16.6 Time-and-Materials, Labor-Hour, and Letter Contracts

16.7 Agreements

### Part 17--Special Contracting Methods

17.1 Multiyear Contracting

17.2 Options

17.3 [Reserved]

17.4 Leader Company Contracting

17.5 Interagency Acquisitions Under the Economy Act

17.6 Management and Operating Contracts

### Part 18 [Reserved]

## Subchapter D--Socioeconomic Programs

### Part 19--Small Business Programs

19.1 Size Standards

19.2 Policies

19.3 Determination of Status as a Small Business Concern

19.4 Cooperation with the Small Business Administration

19.5 Set-Asides for Small Business

19.6 Certificates of Competency and Determinations of Responsibility

19.7 Subcontracting with Small Business, Small Disadvantaged Business and Women-Owned Small Business Concerns

19.8 Contracting with the Small Business Administration (The 8(a) Program)

19.9 [Reserved]

19.10 Small Business Competitiveness Demonstration Program

### Parts 20--21 [Reserved]

### Part 22--Application of Labor Laws to Government Acquisitions

22.1 Basic Labor Policies

22.2 Convict Labor

22.3 Contract Work Hours and Safety Standards Act

22.4 Labor Standards for Contracts Involving Construction

22.5 [Reserved]

22.6 Walsh-Healey Public Contracts Act

22.7 [Reserved]

22.8 Equal Employment Opportunity

22.9 Nondiscrimination Because of Age

22.10 Service Contract Act of 1965, as Amended

22.11 Professional Employee Compensation

22.12 Nondisplacement of Qualified Workers Under Certain Contracts

22.13 Disabled Veterans and Veterans of the Vietnam Era

22.14 Employment of the Handicapped

### Part 23--Environment, Conservation, Occupational Safety, and Drug-Free Workplace

23.1 Pollution Control and Clean Air and Water

23.2 Energy Conservation

23.3 Hazardous Material Identification and Material Safety Data

23.4 Use of Recovered Materials

23.5 Drug-Free Workplace

23.6 Notice of Radioactive Material

23.7 Contracting for Environmentally Preferable and Energy-Efficient Products and Services

23.8 Ozone-Depleting Substances

23.9 Toxic Chemical Release Reporting

23.10 Federal Compliance with Right-to-Know Laws and Pollution Prevention Requirements

### Part 24--Protection of Privacy and Freedom of Information

24.1 Protection of Individual Privacy

24.2 Freedom of Information Act

### Part 25--Foreign Acquisition

25.1 Buy American Act--Supplies

25.2 Buy American Act--Construction Materials

25.3 Balance of Payments Program

25.4 Trade Agreements

25.5 Use of Foreign Currency

25.6 Customs and Duties

25.7 Restrictions on Certain Foreign Purchases

25.8 International Agreements and Coordination

25.9 Additional Foreign Acquisition Clauses

25.10 Implementation of Sanctions Against Countries that Discriminate Against United States Products or Services in Government Procurement

### Part 26--Other Socioeconomic Programs

26.1 Indian Incentive Program

26.2 Disaster or Emergency Assistance Activities

26.3 Historically Black Colleges and Universities and Minority Institutions

## Subchapter E--General Contracting Requirements

### Part 27--Patents, Data, and Copyrights

27.1 General

27.2 Patents

27.3 Patent Rights Under Government Contracts

27.4 Rights In Data and Copyrights

27.5 [Reserved]

27.6 Foreign License and Technical Assistance Agreements

### Part 28--Bonds and Insurance

28.1 Bonds and Other Financial Protections

28.2 Sureties and Other Security for Bonds

28.3 Insurance

### Part 29--Taxes

29.1 General

29.2 Federal Excise Taxes

29.3 State and Local Taxes

29.4 Contract Clauses

### Part 30--Cost Accounting Standards Administration

30.1 General

30.2 CAS Program Requirements

30.3 CAS Rules and Regulations [Reserved]

30.4 Cost Accounting Standards [Reserved]

30.5 Cost Accounting Standards for Educational Institutions [Reserved]

30.6 CAS Administration

### Part 31--Contract Cost Principles and Procedures

31.1 Applicability

31.2 Contracts with Commercial Organizations

31.3 Contracts with Educational Institutions

31.4 --31.5 [Reserved]

31.6 Contracts with State, Local, and Federally Recognized Indian Tribal Governments

31.7 Contracts with Nonprofit Organizations

### Part 32--Contract Financing

32.1 Non-Commercial Item Purchase Financing

32.2 Commercial Item Purchase Financing

32.3 Loan Guarantees for Defense Production

32.4 Advance Payments for Non-Commercial Items

32.5 Progress Payments Based on Costs

32.6 Contract Debts

32.7 Contract Funding

32.8 Assignment of Claims

32.9 Prompt Payment

32.10 Performance-Based Payments

32.11 Electronic Funds Transfer

### Part 33--Protests, Disputes, and Appeals

33.1 Protests

33.2 Disputes and Appeals

## Subchapter F--Special Categories of Contracting

### Part 34--Major System Acquisition

34.0 General

34.1 Testing, Qualification, and Use of Industrial Resources Developed Under Title III, Defense Production Act

### Part 35--Research and Development Contracting

### Part 36--Construction and Architect-Engineer Contracts

36.1 General

36.2 Special Aspects of Contracting for Construction

36.3 Two-Phase Design-Build Selection Procedures

36.4 [Reserved]

36.5 Contract Clauses

36.6 Architect-Engineer Services

36.7 Standard and Optional Forms for Contracting for Construction, Architect-Engineer Services, and Dismantling, Demolition, or Removal of Improvements

### Part 37--Service Contracting

37.1 Service Contracts--General

37.2 Advisory and Assistance Services

37.3 Dismantling, Demolition, or Removal of Improvements

37.4 Nonpersonal Health Care Services

37.5 Management Oversight of Service Contracts

37.6 Performance-Based Contracting

### Part 38--Federal Supply Schedule Contracting

38.1 Federal Supply Schedule Program

38.2 Establishing and Administering Federal Supply Schedules

### Part 39--Acquisition of Information Technology

39.1 General

### Part 40 [Reserved]

### Part 41--Acquisition of Utility Services

41.1 General

41.2 Acquiring Utility Services

41.3 Requests for Assistance

41.4 Administration

41.5 Solicitation Provision and Contract Clauses

41.6 Forms

41.7 Formats

## Subchapter G--Contract Management

### Part 42--Contract Administration and Audit Services

42.1 Contract Audit Services

42.2 Contract Administration Services

42.3 Contract Administration Office Functions

42.4 Correspondence and Visits

42.5 Postaward Orientation

42.6 Corporate Administrative Contracting Officer

42.7 Indirect Cost Rates

42.8 Disallowance of Costs

42.9 Bankruptcy

42.10 [Reserved]

42.11 Production Surveillance and Reporting

42.12 Novation and Change-of-Name Agreements

42.13 Suspension of Work, Stop-Work Orders, and Government Delay of Work

42.14 Traffic and Transportation Management

42.15 Contractor Performance Information

42.16 Small Business Contract Administration

42.17 Forward Pricing Rate Agreements

### Part 43--Contract Modifications

43.1 General

43.2 Change Orders

43.3 Forms

### Part 44--Subcontracting Policies and Procedures

44.1 General

44.2 Consent to Subcontracts

44.3 Contractors' Purchasing Systems Reviews

44.4 Subcontracts for Commercial Items and Commercial Components

### Part 45--Government Property

45.1 General

45.2 Competitive Advantage

45.3 Providing Government Property to Contractors

45.4 Contractor Use and Rental of Government Property

45.5 Management of Government Property in the Possession of Contractors

45.6 Reporting, Redistribution, and Disposal of Contractor Inventory

### Part 46--Quality Assurance

46.1 General

46.2 Contract Quality Requirements

46.3 Contract Clauses

46.4 Government Contract Quality Assurance

46.5 Acceptance

46.6 Material Inspection and Receiving Reports

46.7 Warranties

46.8 Contractor Liability for Loss of or Damage to Property of the Government

### Part 47--Transportation

47.1 General

47.2 Contracts for Transportation or for Transportation-Related Services

47.3 Transportation in Supply Contracts

47.4 Air Transportation by U.S.--Flag Carriers

47.5 Ocean Transportation by U.S.--Flag Vessels

### Part 48--Value Engineering

48.1 Policies and Procedures

48.2 Contract Clauses

### Part 49--Termination of Contracts

49.1 General Principles

49.2 Additional Principles for Fixed-Price Contracts Terminated for Convenience

49.3 Additional Principles for Cost-Reimbursement Contracts Terminated for Convenience

49.4 Termination for Default

49.5 Contract Termination Clauses

49.6 Contract Termination Forms and Formats

### Part 50--Extraordinary Contractual Actions

50.1 General

50.2 Delegation of and Limitations on Exercise of Authority

50.3 Contract Adjustments

50.4 Residual Powers

### Part 51--Use of Government Sources by Contractors

51.1 Contractor Use of Government Supply Sources

51.2 Contractor Use of Interagency Fleet Management System (IFMS) Vehicles

## Subchapter H--Clauses and Forms*

### Part 52--Solicitation Provisions and Contract Clauses

52.1 Instructions for Using Provisions and Clauses

52.2 Text of Provisions and Clauses

52.3 Provision and Clause Matrix

### Part 53--Forms

53.1 General

53.2 Prescription of Forms

53.3 Illustrations of Forms

### Appendix to the FAR

Cost Accounting Standards Preambles and Regulations

### Index

### *Subchapter H is available in Volume II of the FAR