if you are in a fast easy way to understand part two of the federal acquisition regulations also known as far part 2 then you must watch this video Let's dive into it far part 2 is all about definitions the purpose of this part is to Define frequently used words in terms in the far it provides other definitions of the same word or term that's also in the far and provides for the incorporation of these definitions into solicitations and contracts by reference it's important to note that other parts subpart sections of this regulation which is also referred to as 48 CFR chapter 1 May Define other words or terms and those definitions only apply to the part subpart or section where that word or term is defined so here's an important fact if a word or term is defined in Far part 2 it has the same meaning throughout the entire far unless the context in which the word or term is used clearly requires a different meaning or another far part subparter section provides a different definition for the particular part or portion of the part in this picture as used in the subpart Affiliates and you see how its Affiliates is italicized that's the word it's defining is one business concern organizations or individuals are Affiliates of each other if directly or indirectly and then the rest of the definition so this is an example of where it's calling out the subpart in this subpart Affiliates means this definition another fact to note is if a word or term that is defined in Far part 2 is defined differently in another part subpart or section of the far the definition in this section includes a cross reference to the other definitions so in fart part two it will reference it to somewhere else and that part subpart or section applies to the word or term when used in that part subpart or section we have the picture here that Associates to the previous example Affiliates again Affiliates is italicize that's the word we're defining means an Associated business concern or individuals if directly or indirectly either one controls or can't control the other or third-party controls or can control both except as follows for use in subpart 9.4 see definition 9.403 and for use of Affiliates in size determination see the definition of small business concern in this section another important fact of this far apart too is that far Clause 52.202-1 definitions is inserted in solicitations and contracts that exceed the simplified acquisition threshold which is also abbreviated as sat s-a-t there are over 250 words just in Far part 2. I'm going to share 10 popular terms with you after this slide however I encourage you to kind of reference this section frequently try to rememberize what words are there so you can quickly know what's really intentional throughout the regulations so we'll just start going through these different terms I'll just let you know the term or the statement or the word and the definition a full and open competition when used with respect to a contract action means that all responsible sources are permitted to compete that means large small business medium business foreign business just any business that's responsible and deemed to be responsible through the process of solicitation can compete so the second one inspection means examining and testing supplies or services including when appropriate raw materials components and intermediate assemblies to determine whether they are conformed to contract requirements sometimes that's somebody on staff with a contractor within like maybe their own quality department or it could be an outside agency like defense contract management agency who has their own quality Department across the countries and can inspect in support of those contracts so the third popular term here is products and this definition is quite a doozy products have the same meaning as supplies and I actually have that word listed in here as well so we'll look at that in a few minutes but these are the type of examples of definitions you could come across within the far the fourth popular term I have for you is small business subcontractor which means a concern that does not exceed the size standard for the North American industry classification system which I call the Nix code that the prime contractor determines best describes the product or service being acquired by the subcontractor the fifth term I have for you is solicitation which means any request to submit offers or quotes to the government solicitations under sealed bid procedures are called invitations for bid solicitations under negotiated procedures are called requests for proposals and solicitations under simplified acquisition procedures may require submission of either a quotation or an offer so basically the RFP the RFQ the RFB that you typically hear about in the commercial world we just classify it as a solicitation the sixth popular term I have is soul source which is acquisition means a contract for the purchase of supplies or services that is entered into or proposed to by agency after soliciting and negotiating with only one source the seventh term I have for you is supplies and we briefly talked about supplies under the term products because it said products means the same thing as supplies and supplies means all property except land or interest in land it includes but is not limited to Public Works buildings and Facilities ship floating equipment and vessels of every character type and description together with parts and accessories aircraft and aircraft parts accessories and Equipment machine tools and the alteration or installation of any of the foregoing so it also means products the eighth term I have for you is termination for convenience which means the exercise of the government's right to completely or partially terminate performance of work under a contract when it is the government's interest and that's typically no fault of the contractor they're not penalized for it and they have an opportunity to try to make themselves whole up to the time of termination the ninth term is termination for default which means the exercise that the government's right to completely or partially terminate a contract because of the contractor's actual or anticipated failure to perform its contract obligations I have had um quite a few termination for default notices or uh cure notice and typically just like in the commercial world you have an opportunity to kind of make yourself right to cure uh to appease a situation to fix the solution um and and to kind of get on level kill again back on track with a plan of action um that's typically the outcome I've experienced I've not had a termination for default throughout my 20 plus years and the 10th popular term I have for you is warranty warranty means a promise or affirmation given by a contractor to the government regarding the nature usefulness or condition of the supplies or performance of services furnished under the contract there you have it far part two the next video in this series is far part 3 improper business practices and personal conflicts of interest and if you haven't already check out my far series playlist that has the whole collection of far parts so you can watch them all or find specific far Parts you need to know now until next time