Summary: The Federal Acquisition Regulation System makes government procurement organized and trouble-free. Both contractors and government agencies then should know the FAR provisions and comply with the rules in order to have a successful procurement of goods and services.
Everything needs rules, even government procurement. Both business transactions and the market can be lucrative and complex in this kind of venture, which is why there is a strong need for the Federal Acquisition Regulations in order for the government to ensure a smooth-flowing and trouble-free procurement of goods and services.
Indeed, contractors for government procurement need not only be well-rounded when it comes to marketing strategies. Before learning the ways to not let the competitors obstruct their way to winning contracts, it is always a must for the contractors to know what is federal acquisition regulation.
What is federal acquisition regulation?
The federal acquisition regulation can simply be defined as the set of rules or principles stated in the Federal Acquisition Regulation System. This system follows what the federal government of the United States have mandated for parties involved in the acquisition or procurement of goods and services.
It governs the three processes involved in the process of government purchases which includes the planning and recognition of acquisition, formulation of government contracts, and administration of the contracts published.
Structure of the Federal Acquisition Regulation
FAR is comprised of eight subchapters (labelled A to H) and contains 53 parts. These provisions are duly divided into subparts and sections which may be used as reference for certain cases.
The first subchapter of the FAR gives a general preview of the Federal Acquisition Regulation System, with all the terminologies used in the business. Possible sources of conflict and unethical practices in government are also included, along with the administrative issues that can be encountered both by the contractors and contracting officers.
The FAR contains the rules that need to be followed in publishing contract actions, invitations and proposals together with the requirements and qualifications of the contractors that need to be examine prior to bidding and negotiations. Basically, the second chapter explains the must-do’s of the government agencies when publicizing their demands and needs from potential sellers.
And because the contracting methods are the most crucial part of government procurement, the FAR also mandates all the contracting officers to follow the acquisition procedures from sealed biddings and negotiations while utilizing the most appropriate contracts and contracting procedures. Businesses are classified accordingly, which will then be helpful for the government agencies in determining the right target contractors.
Who are governed by the FAR?
This set of regulations from the Federal Acquisition System covers both the sellers and the contracting officers. FAR contains all the provisions that state how both parties should behave during government procurement.
The regulations may be difficult to comprehend especially for newbies. Thus, there can be several federal acquisition regulation training conducted by the government agencies prior to the bidding especially those that target small enterprises.
The Internet can also be a good source of crash course in federal acquisition regulation training as there can be various references and versions of “federal acquisition regulation for dummies” e-book versions. Reading through these digital versions of federal acquisition regulation for dummies and having extra federal acquisition regulation training can help neophytes know the ways in which they can avoid the possible pitfalls they can be trapped into as they venture in government procurement.
Remember that having a little knowledge about the rules never hurt. As long as they know the basics of federal regulation acquisition by heart, they can be sure to survive in the lucrative market.
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