Why Is It Important to Be Compliant with Federal Acquisition Regulation (FAR)?

When a company has been contracted to the United States government, there are tons of regulatory policies owners and managers have to jump through. Let’s look at some of them.

The Federal Acquisition Regulations(FAR) System was created for taking and categorizing certain standard policies and processes and publishing how this can affect an acquisition system for managerial and administrative entities. With this system, the federal contracting services are considered the main file along with the regulations that affect many businesses that may be involved in the FAR. Certain guidelines are set and must be adhered to by the company which could cause complications for the business owner. The trust of the consumer is imperative, and all policies set by the federal government contractor that affect the public must be followed. Those included in the procedure should manage to work together as a team and ensure the correct and best decisions are made responsibly.

FAR Federal Acquisition Regulation is a set of clauses that describes the rules for contracting with the government within the code of the federation. This is regulated by the agencies and the FAR and must be followed.

New FAR amendments

If your company has a federal contract, the government expects you to be FAR compliant. The federal contracting services review contractor compliance with FAR during reviews and the owners need to stay up to date with new rules and regulations. FAR was recently amended in a few ways that could help your brand and is made every two years – they address certain counterfeit or suspected counterfeit parts and contractors and subcontractors are required to report these items and incidents to the federal government contractor.

According to the Civilian Agency Acquisition Council or CAAC, this amendment is expected to benefit small brands and start-ups and give them additional guidance on tools to encourage them to participate in multiple-award contracts.

In providing that guidance, the updated regulations were meant to:

• Set aside a part or parts of multiple award contracts for small brands.

• Set aside orders for multiple-award contracts so that a fair opportunity is considered for contact holders.

• Reserve awards for small businesses and multiple-award contracts that are gotten through full and open competition.

• The rule provides federal government contracting officers the authority to issue orders directly to a small brand under a reserve.

• This rule removes the ability of interested parties to protest against certain awards under the title of service-disabled - veteran owns a small business.

• Federal government contracting offers need to comply with certain limitations at a contract level set aside for small businesses at each tier. For example, veterans, small start-ups, and other classes will be offered certain offers as compared to the rest to protect their rights.

If you are a federal contractor, it’s important to review your policies and procedures regularly to ensure compliance with all regulations as well as new rules.

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