1. Introduction to the Federal Acquisition Regulations -FAR • Basic regulations are used by all federal agencies in their acquisition of supplies and services • “Contracting by regulations” – 90% or more of the clauses in government contracts are prescribed by regulation • All branches of the government influence the FAR • 53 Parts • 32,000 + pages

2. Where can the FAR be found? • Printed materials- • Federal Register • Code of Federal Regulations (CFR)– Title 48 • CFR includes the FAR, its supplements and the regulations of the Cost Accounting Standards Board • Internet- • http://www.arnet.gov/far • http://hydra.gsa.gov/far/current/html/toc.html

3. FAR – What does it do? • Establishes uniform policies and procedures for acquisition by all federal agencies • Satisfies the government’s needs as a consumer • Minimizes administrative costs • Upholds the government's integrity as a market participant • Fulfills public policy objectives of Congress and the President

4. FAR – What does it look like? • Table of Content – just the basics • Parts (Parts 1-51) • Clauses (Part 52) • Provision and Clause Matrix • Forms (Part 53) • Topical Index

5. FAR- What will appear in our contracts and how do we interpret what we see? • Each clause reads: 52.2__-___ “52” – tells you this is the clause section of the FAR • - place holder (I am unaware of any further explanation of this digit) __ - next two numbers identify the part of the FAR where you will find the specific material on your subject matter Ex: 52.245-5 - Leads you to Part 45 – Government Property – look for language that applies to educational institutions

6. FAR – Types of Contracts • Selecting the type of contract is generally a matter for negotiation and requires sound judgment and acknowledgeable participants • Two broad categories of contracts commonly used • Fixed price (Subpart 16.2) • Cost reimbursable (Subpart 16.3)

7. FAR – Fixed Price • Provides for a firm price – used when acquiring commercial items • Many subtypes available to contracting officer • Examples: • Firm fixed price – contractor has full responsibility for the performance costs and resulting profits (or loss), and assumption of risk • Cost plus fixed fee – contractor has minimal responsibility for performance costs and the negotiated fee is fixed • No fee can be charged for non-profits

8. FAR - Cost Reimbursable • Provides for payment of allowable incurred costs • to the extent prescribed in the contract • establishes an estimate of total costs for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed without approval • Work to “best efforts”

9. FAR – Other types of contracts • Incentive contracts • Indefinite-delivery contracts • Time and materials contracts • Labor hour contracts • Letter Contracts • Agreements • Basic Ordering Agreements • Basic Agreements

10. FAR - Uniform Contract FormatWhat are the basic parts of a government contract? • Part I – Schedule • A – Solicitation/Contract • B - Supplies or services and prices • C – Description/Specifications • D – Packaging and marking • E - Inspection and Acceptance • F – Deliveries or performance • G – Contract Administrative data • H – Special contract requirements

11. FAR - Uniform Contract FormatWhat are the basic parts of a government contract? • Part II – Contract Clauses I – Contract Clauses • Part III – List of Documents, Exhibits and Other Attachments J – List of Documents, Exhibits and Other Attachments

12. FAR - Uniform Contract FormatWhat are the basic parts of a government contract? • Part IV – Representations and Instructions • K – Representations and certifications and other statements of bidders • L – Instructions, conditions and notices to bidders • M – Evaluation factors for award

13. FAR – Some Key Parts • Small Business Programs – Part 19 • Patent Rights – Part 27 • Contract Cost Principles and Procedures – Part 31 • Clauses – Part 52

14. FAR Part 31 Contract Cost Principles and Procedures • FAR Subpart 31.3 – Cost Principles of Educational Institutions • Leads us back to A-21

15. FAR Part 52Clauses • Clauses that frequently appear in our contracts and/or subcontracts • FAR 52.216-7 – Allowable cost and payment – Subpart 31.3 should be used and/or substituted • FAR 52.227-11 – Patent Rights (Short Form) • FAR 52.227-14 – Data Rights – try to include Alternate IV • FAR 52.245-5 – Government Property – use Alternative 1

16. FAR Part 52Clauses (cont.) • FAR 52.246-9 – Inspection of Research and Development (Short Form) - most desirable • FAR 52.249-5 – Termination for Convenience of the Government