The Federal Acquisition Regulation (FAR) is the primary set of rules governing how U.S. federal agencies procure goods and services. It establishes mandatory procedures, policies, and requirements that all government contractors must follow.
The Federal Acquisition Regulation (FAR) is the comprehensive rulebook for federal procurement. Published in Title 48 of the Code of Federal Regulations, the FAR outlines how government agencies must conduct buying activities and establishes the policies and procedures that all contractors must follow when bidding on federal contracts.
The FAR covers everything from how agencies must announce opportunities (through SAM.gov), to how contractors must price their bids, to what terms and conditions appear in every federal contract. It includes detailed rules about competition, socioeconomic programs, cost accounting, contract types, and dispute resolution. Think of it as both a requirements document and a rulebook that shapes every interaction between government buyers and contractors.
Why it matters: The FAR is non-negotiable. Violating FAR requirements can result in contract termination, debarment from future work, and legal action. Even small companies entering federal contracting must understand at least the FAR sections relevant to their business. Agencies have limited flexibility to deviate from FAR requirements, so contractors cannot negotiate around them.
In practice, the FAR works alongside supplement regulations created by specific agencies (like DFARS for Defense). Contractors must comply with both the FAR and any relevant supplements. One common misconception is that the FAR is just a guideline—it's actually binding regulation with the force of law.
The FAR is regularly updated (through interim rules and final rules), so staying current is important. Many government contracting professionals track FAR changes closely because even small regulatory updates can affect how they bid and perform contracts.