Overview
This video provides a concise explanation of FAR Part 2, which focuses on definitions used throughout the Federal Acquisition Regulations (FAR), and highlights ten important terms commonly encountered in federal contracting.
Purpose and Scope of FAR Part 2
- FAR Part 2 establishes definitions for frequently used terms throughout the FAR.
- Definitions in FAR Part 2 apply across the FAR unless context or another section provides a different meaning.
- Other parts of the FAR may define terms differently for specific sections, which will be cross-referenced in FAR Part 2.
- Definitions are incorporated into solicitations and contracts by reference.
- FAR Clause 52.202-1 ("Definitions") is included in solicitations and contracts exceeding the Simplified Acquisition Threshold (SAT).
Example of Definitions and Application
- Definitions may specify their application to certain subparts, such as “Affiliates” in subpart 9.4 or size determination.
- When terms have multiple definitions in different sections, FAR Part 2 cross-references those sources to clarify usage.
Tips for Using FAR Part 2
- FAR Part 2 contains over 250 defined terms.
- Regularly reference FAR Part 2 to understand the precise meaning of terms used in federal contracts.
Ten Key Terms Defined in FAR Part 2
- Full and Open Competition: All responsible sources are permitted to compete for a contract.
- Inspection: Examining and testing supplies or services to ensure they meet contract requirements.
- Products: Defined as having the same meaning as supplies.
- Small Business Subcontractor: Business fitting the size standard for its relevant NAICS code, determined by the prime contractor.
- Solicitation: Any government request for offers or quotes, such as RFPs, RFQs, or IFBs.
- Sole Source: A contract awarded after soliciting and negotiating only with one source.
- Supplies: All property except land or interests in land, including buildings, equipment, and accessories.
- Termination for Convenience: Government’s right to terminate a contract in its interest, not due to contractor fault.
- Termination for Default: Government’s right to terminate a contract due to contractor’s failure to perform.
- Warranty: Contractor’s promise regarding the nature, condition, or performance of supplies or services.
Recommendations / Advice
- Frequently consult FAR Part 2 to ensure accurate interpretation of terms in federal contracting.
- Familiarize yourself with the most commonly used definitions to streamline contract review and compliance.