The Federal Acquisition Regulation (FAR) is a complex set of guidelines for entrepreneurs looking to expand into the federal market. It covers government contracts, procurement, and labor laws, and is divided into 53 parts. Small business owners can find more information on government procurement procedures from various online resources.
Established by the US federal government, the Federal Acquisition Regulation (FAR) is a complex set of guidelines for entrepreneurs looking to expand into the federal market. The lengthy document touches on a number of issues, including government contracts, the Code of Federal Regulations, government procurement and the procurement process. Government officials issued the regulation to ensure that purchasing procedures were conducted in a standard, consistent, fair and impartial manner.
The Federal Acquisition Regulation is in effect because US government contracts differ from commercial contracts in which business owners bid more frequently. It has been prepared with the intention of incorporating individual agency regulations into one comprehensive document. Variations between government and commercial contracts include requirements to change the scope of work; procedures for making payments; how to conduct inspections and tests; when termination of the contract is permitted; and how delivered goods and services should be accepted.
In all, the guidelines within the federal takeover regulation are divided into 53 parts. The entire document includes eight subheadings: a general overview; competition and acquisition planning; contractual methods and contractual types; socio-economic programmes; general contractual requirements; special categories of contracts; contract management; and a section on clauses and forms. A dominant theme throughout the document is contract pricing, which is heavily regulated in the government sector.
A distinguishing factor between government and commercial contracts is the way labor regulations are enforced. In the government arena, federal contractors are required to closely cover a number of specific employment and labor laws that are enforced through the U.S. Department of Labor’s Federal Office of Contract Compliance Programs. One such provision includes the Vietnam Era Veterans Readjustment Assistance Act of 1974. Federal contractors are required to annually provide a list of veterans who have been hired.
Other laws that are incorporated into the Federal Acquisition Regulation include the Drug-Free Workplace Act of 1988 and a commitment to comply with terms established by the US Wage and Hour Division within the Department of Labor. A federal contractor is required to provide a drug-free workplace, and federal laws regarding wage standards must be followed throughout the term of the contract.
You can find a variety of online resources to provide more detailed information about federal procurement regulation, including the websites of the US Small Business Administration, the US General Services Administration, and the Procurement Association Technical Service Centers. The websites of these organizations and agencies provide information for small business owners who are new to government procurement procedures.
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