FAR Clause Navigator
Search and understand Federal Acquisition Regulation (FAR) clauses. Plain-English explanations of the provisions that govern government contracts.
Showing 100 of 100 clauses
Total Small Business Set-Aside
Requires contracting officers to set aside acquisitions over the simplified acquisition threshold exclusively for small businesses when there is a reasonable expectation that offers will be received from at least two responsible small business concerns.
Notice of Total Small Business Set-Aside
Notifies offerors that the acquisition is set aside for small business. Only small businesses may submit offers. The offeror must be a small business under the NAICS code assigned to the solicitation at the time of offer and at the time of contract award.
Notice of HUBZone Set-Aside
Reserves the acquisition for HUBZone small business concerns. Offerors must be certified HUBZone small businesses at the time of offer.
Notice of Service-Disabled Veteran-Owned Small Business Set-Aside
Reserves the acquisition for service-disabled veteran-owned small business (SDVOSB) concerns. At least 51% owned and controlled by service-disabled veterans.
Notice of Set-Aside for Economically Disadvantaged Women-Owned Small Business
Reserves the acquisition for economically disadvantaged women-owned small businesses (EDWOSB). Must be certified and meet NAICS size standards.
Limitations on Subcontracting
For set-aside contracts, requires the small business to perform a certain percentage of the work itself. For services: at least 50% of personnel costs. For supplies: at least 50% of manufacturing cost or 50% if non-manufacturer.
Utilization of Small Business Concerns
Requires contractors to use their best efforts to award subcontracts to small business, HUBZone, SDVOSB, WOSB, and small disadvantaged business concerns.
Small Business Subcontracting Plan
Requires other-than-small businesses to submit a subcontracting plan with specific goals for small business subcontracting categories.
Tradeoff Process
Allows the government to accept other than the lowest priced offer if the perceived benefits of the higher-priced proposal merit the additional cost. Must document the tradeoff rationale.
Lowest Price Technically Acceptable
Award goes to the lowest-priced offer that meets the minimum technical requirements. Non-cost factors are evaluated on a pass/fail basis only. No tradeoffs between cost and technical factors.
Evaluation — Commercial Products and Services
Describes the evaluation factors and significant subfactors for commercial item acquisitions. Common factors include technical capability, past performance, and price.
Proposal Evaluation
Governs how agencies evaluate proposals. Cost/price evaluation must be performed. Past performance must be evaluated in all source selections for negotiated competitive acquisitions expected to exceed the simplified acquisition threshold.
Exchanges with Offerors After Receipt of Proposals
Covers clarifications, communications, and discussions with offerors. Discussions, if held, must be meaningful and address deficiencies, significant weaknesses, and adverse past performance.
Firm-Fixed-Price Contracts
Provides a fixed price for specified supplies or services. Lowest risk to the government. Appropriate when specifications are well-defined and costs can be estimated with reasonable certainty.
Cost-Reimbursement Contracts
Government pays the contractor's allowable incurred costs plus a fee. Appropriate when uncertainties make it impractical to estimate costs with certainty. Requires an adequate accounting system.
Indefinite-Delivery Contracts (IDIQ)
Provides for an indefinite quantity of supplies or services during a fixed period. Delivery orders are placed against the contract as needs arise. Must state minimum and maximum quantities.
Time-and-Materials Contracts
Government pays based on fixed hourly labor rates plus actual cost of materials. Used when it is not possible to estimate the extent or duration of work. Requires government surveillance.
Incentive Contracts
Establishes targets for cost, performance, or delivery, with adjustments to profit/fee based on the contractor's actual achievement of the targets.
Contractor Code of Business Ethics and Conduct
Requires contractors to have a written code of business ethics and conduct, exercise due diligence to prevent and detect criminal conduct, and promote a culture of ethics and compliance.
System for Award Management (SAM)
Requires offerors to be registered in SAM before submitting offers and maintain active registration through contract performance.
Prohibition on Contracting for Certain Telecommunications
Prohibits contractors from providing or using covered telecommunications equipment or services from Huawei, ZTE, Hytera, Hikvision, Dahua, and their subsidiaries.
Equal Opportunity
Prohibits discrimination in employment based on race, color, religion, sex, sexual orientation, gender identity, or national origin. Requires affirmative action to ensure equal employment opportunity.
Service Contract Labor Standards
Applies the McNamara-O'Hara Service Contract Act. Requires payment of prevailing wages and fringe benefits to service employees. Department of Labor issues wage determinations.
Drug-Free Workplace
Requires contractors to maintain a drug-free workplace policy, establish a drug-free awareness program, and notify employees about the policy.
Payment by Electronic Funds Transfer
Requires all contract payments to be made by electronic funds transfer (EFT). Contractor must register banking information in SAM.
Rights in Data — General
Defines the government's rights to data produced under a contract. Government gets unlimited rights in data first produced under the contract. Contractor retains copyright but grants government a license.
Patent Rights — Ownership by the Contractor
Allows small business and nonprofit contractors to retain title to inventions made under government contracts, subject to the government's nonexclusive license.
Additional Data Requirements
Gives the government the right to require delivery of additional data, not specifically identified in the contract, at any time during contract performance or within two years after acceptance.
Policy on Past Performance
Requires agencies to evaluate contractor past performance on all contracts over simplified acquisition threshold. Evaluations are entered in CPARS and accessible to all federal agencies.
Evaluating Past Performance
Past performance evaluation shall include the currency and relevance of information, source of information, and context of data. Offerors without past performance cannot be rated favorably or unfavorably.
Protests to the Agency
Allows disappointed offerors to protest to the contracting agency before or after award. Agency must issue a decision within 35 days (or 5 days for pre-award protests).
Protests to GAO
Allows protests to the Government Accountability Office within 10 days after contract award or knowledge of improper action. GAO must decide within 100 days.
Definitions — Disputes
Defines the Contract Disputes Act framework. Claims by contractors must be submitted in writing to the contracting officer. Claims over $100,000 require contractor certification.
Only One Responsible Source (Sole Source)
Allows sole source contracting when only one source can meet the government's needs. Requires a written justification and approval (J&A) document.
Methods of Disseminating Information
Requires contracting officers to publicize contract opportunities. Acquisitions over $25,000 must be publicized on SAM.gov (Contract Opportunities) for at least 15 days.
Instructions to Offerors — Competitive Acquisition
Provides standard instructions for preparing and submitting competitive proposals, including format requirements, submission procedures, and late submission rules.
Policy on Commercial Products and Services
Establishes preference for acquiring commercial products and services. Agencies must conduct market research to determine if commercial items are available to meet their needs.
Instructions to Offerors — Commercial Products and Services
Simplified instructions for commercial item proposals. Requires technical description, past performance, and price. Much simpler than FAR Part 15 proposals.
Contract Terms and Conditions — Commercial Products and Services
Standard terms for commercial item contracts. Includes inspection, acceptance, assignment, disputes, payment, warranty, and termination provisions.
Policy — Simplified Acquisition
Acquisitions below the simplified acquisition threshold ($250,000) use streamlined procedures. Promotes competition while reducing administrative burden for both government and industry.
Soliciting Competition — Simplified Acquisition
Requires maximum practicable competition even for simplified acquisitions. For purchases under $25,000, one quote may be sufficient if price is reasonable.
Security Requirements
Applies when the contract requires access to classified information. Contractor must maintain a facility security clearance and comply with the National Industrial Security Program.
Basic Safeguarding of Covered Contractor Information Systems
Requires basic safeguarding of federal contract information (FCI) on contractor systems. Includes 15 security requirements from NIST SP 800-171 Basic.
Safeguarding Covered Defense Information and Cyber Incident Reporting
DoD-specific clause requiring NIST SP 800-171 compliance for protecting Controlled Unclassified Information (CUI) and reporting cyber incidents within 72 hours.
Changes — Fixed-Price
Gives the contracting officer the right to make unilateral changes within the general scope of the contract. Contractor is entitled to equitable adjustment for cost/schedule impacts.
Termination for Convenience of the Government
Allows the government to terminate all or part of the contract when it's in the government's interest. Contractor is entitled to payment for work done plus reasonable profit.
Default (Fixed-Price Supply and Service)
Allows the government to terminate the contract if the contractor fails to deliver, perform, or make progress. Contractor may be liable for excess reprocurement costs.
Broad Agency Announcements
Allows agencies to issue Broad Agency Announcements (BAAs) for research proposals. Used for basic and applied research. Not appropriate for development or production.
SBIR/STTR Programs
SBIR and STTR awards are exempt from full and open competition requirements. These programs have their own solicitation and evaluation procedures managed by participating agencies.
Wage Determination — Service Contract Act
Requires contracting officers to obtain wage determinations from the Department of Labor before issuing solicitations for service contracts. Wage determinations set minimum hourly wages and fringe benefits for each labor category in a geographic area.
Construction Wage Rate Requirements
Implements the Davis-Bacon Act requiring contractors to pay prevailing wages on construction contracts. Workers must be paid at least the wage rates specified in the applicable wage determination.
Payment for Overtime Premiums
Restricts the use of overtime on cost-reimbursement contracts unless approved by the contracting officer. The government will not reimburse overtime premiums exceeding zero unless specifically authorized.
Statement of Equivalent Rates for Federal Hires
Informs offerors of the wage rates paid to federal employees performing similar work. Used to help contractors determine appropriate compensation for service employees under the Service Contract Act.
Combating Trafficking in Persons
Prohibits contractors and their employees from engaging in trafficking in persons, using forced labor, or destroying identity documents. Contractors must maintain a compliance plan for contracts over $550,000 performed outside the United States.
Bid Guarantees
Requires bid guarantees (bid bonds) for construction contracts exceeding $150,000 to ensure bidders will honor their bids. Typically set at 20% of the bid price. Protects the government against bidders who withdraw after opening.
Insurance — Work on a Government Installation
Requires contractors performing work on a government installation to carry workers compensation, employer liability, comprehensive general liability, and automobile liability insurance at minimum specified amounts.
Performance and Payment Bonds — Construction
Requires performance bonds (100% of contract price) and payment bonds (100% of contract price) for construction contracts exceeding $150,000 under the Miller Act. Protects the government and subcontractors/suppliers.
Policy on Insurance
Requires contractors to maintain adequate insurance coverage as a cost of doing business. The contracting officer may require specific types and minimum amounts of insurance for contracts involving risk of loss or damage.
Determining Allowability of Costs
Establishes five factors for determining cost allowability: reasonableness, allocability, applicable accounting standards, contract terms, and any limitations in FAR Subpart 31.2. Costs must meet all five factors to be allowable.
Compensation for Personal Services
Governs allowability of employee compensation costs including salaries, bonuses, and deferred compensation. Compensation must be reasonable for the work performed and must be consistent with the contractor's established practices.
Independent Research and Development (IR&D) and Bid & Proposal Costs
Allows recovery of IR&D and B&P costs as indirect costs if they are allocable and reasonable. These costs are critical for small businesses investing in technology development and proposal preparation.
Cost Accounting Standards
Requires CAS-covered contractors to disclose and consistently follow cost accounting practices. Full CAS coverage applies to contracts over $50M; modified coverage applies to contracts over $7.5M.
Travel Costs
Allows travel costs that are reasonable and consistent with the contractor's established practices. Airfare is limited to the lowest available coach class. Lodging and meals follow GSA per diem rates or the contractor's written travel policy.
Types of Contract Quality Requirements
Establishes four levels of quality requirements: reliance on contractor inspection, standard inspection, higher-level inspection (e.g., ISO 9001), and special inspection. The level selected depends on the criticality and complexity of the supplies or services.
Inspection of Supplies — Fixed-Price
Gives the government the right to inspect and test all supplies before acceptance. The contractor must maintain an acceptable inspection system. Nonconforming supplies may be rejected, and the contractor bears the cost of rework or replacement.
Inspection of Services — Fixed-Price
Authorizes the government to inspect services as performed. If services do not conform to contract requirements, the government may require re-performance at no additional cost or reduce the contract price.
Warranty of Supplies of a Noncomplex Nature
Provides a standard warranty clause for noncomplex supplies. The contractor warrants that supplies will be free from defects in material and workmanship and will conform to specifications for a specified period after acceptance.
Government Property
Governs contractor use, management, and accountability of government-furnished property (GFP) and contractor-acquired property (CAP). Contractors must establish a property management system, maintain records, and report property annually.
Policy — Government Property
Establishes that the government shall provide property to contractors only when it is clearly demonstrated to be in the government's best interest. Contractors are normally required to furnish all property needed for contract performance.
Use and Charges
Authorizes contractors to use government property for other purposes (additional government work, commercial work) with contracting officer approval. Establishes rental charges for non-government use of government property.
Consent to Subcontract
Requires contractors to obtain contracting officer consent before awarding certain subcontracts. Applies to cost-reimbursement, T&M, and letter contracts. The contracting officer reviews the subcontract for pricing, competition, and technical adequacy.
Subcontracts
Requires the contractor to notify the contracting officer before placing subcontracts requiring consent. Must flow down appropriate clauses to subcontractors and ensure subcontractors are eligible (not debarred/suspended).
Subcontracts for Commercial Products and Services
Specifies clauses that must be flowed down to subcontractors in commercial item subcontracts. Simplifies flowdown requirements compared to non-commercial subcontracts.
Buy American — Supplies
Implements the Buy American Act requiring use of domestic end products. Foreign end products may be used only if domestic products are not available, their cost is unreasonable (exceeds domestic price by more than a specified percentage), or a specific exception applies.
Trade Agreements
Implements trade agreements such as the WTO Government Procurement Agreement and Free Trade Agreements. Waives Buy American requirements for products from designated countries on acquisitions exceeding applicable thresholds.
Exceptions to Buy American
Lists exceptions to Buy American requirements: nonavailability of domestic products, unreasonable cost (price differential test), public interest determinations, and acquisitions of information technology that are commercial products.
Buy American and Balance of Payments Program
DoD-specific Buy American clause with a higher domestic preference evaluation factor than the civilian FAR clause. Applies a 50% price preference for domestic end products in DoD acquisitions.
Prompt Payment
Implements the Prompt Payment Act requiring the government to pay invoices within 30 days of receipt (or acceptance, whichever is later). Interest penalties accrue automatically for late payments at the rate set by the Treasury Department.
Progress Payments
Authorizes progress payments based on costs incurred during contract performance. Small businesses receive progress payments at 85% of eligible costs (vs. 80% for large businesses). Requires adequate accounting system and financial controls.
Payment Documentation and Process
Establishes requirements for proper invoicing. Contractors must submit invoices with specific information including contract number, description of services, quantities, and payment terms. Improper invoices are returned within 7 days.
Sustainable Acquisition Policy
Requires agencies to advance sustainable acquisition by purchasing products that are energy-efficient, water-efficient, biobased, environmentally preferable, non-ozone depleting, and made with recovered materials to the maximum extent practicable.
Hazardous Material Identification and Material Safety Data
Requires contractors to identify and list all hazardous materials to be delivered under the contract. Contractors must provide Safety Data Sheets (SDS) for all hazardous materials and update them as necessary.
Notice of Radioactive Materials
Requires contractors to notify the contracting officer before delivering radioactive materials or items containing radioactive materials. Notification must include quantity, description, and handling instructions.
Procedures for Executive Order 13627 — Trafficking in Persons
Requires contractors with contracts exceeding $550,000 performed outside the US to maintain a compliance plan to prevent trafficking. Includes recruitment, housing, and wage payment standards for workers.
Equal Opportunity for Workers with Disabilities
Implements Section 503 of the Rehabilitation Act requiring contractors to take affirmative action to employ and advance qualified individuals with disabilities. Contractors must establish a 7% utilization goal for workers with disabilities.
Equal Opportunity for Veterans
Implements the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) requiring affirmative action to employ and advance covered veterans including disabled veterans, recently separated veterans, and Armed Forces service medal veterans.
Compliance with Safeguarding Covered Defense Information Controls
Requires offerors to implement NIST SP 800-171 security requirements before award. Offerors must notify the DoD CIO of any security requirements not yet implemented via a Plan of Action and Milestones (POA&M).
Rights in Other Than Commercial Computer Software and Documentation
Defines the government's rights in noncommercial computer software developed under DoD contracts. Software developed exclusively with government funds gets unlimited rights; mixed-funded gets government purpose rights; privately funded gets restricted rights.
Final Scientific or Technical Report
Requires delivery of a comprehensive final report summarizing results of research or development performed under the contract. The report must be submitted to the Defense Technical Information Center (DTIC).
Preference for Certain Domestic Commodities
Requires DoD to give preference to domestic specialty metals, hand tools, stainless steel flatware, cotton, woven silk, and synthetic fabric. Stricter than civilian Buy American requirements for these specific commodities.
Cloud Computing Services
Requires DoD cloud computing services to meet FedRAMP security requirements and store data within the United States. Contractors must implement safeguards equivalent to those used by the DoD and report cyber incidents.
Electronic Submission of Payment Requests
Requires DoD contractors to submit payment requests electronically through the Wide Area WorkFlow (WAWF) system. Paper invoices are not accepted unless a waiver is granted by the contracting officer.
Contractor Employee Whistleblower Rights
Informs contractor employees of their right to disclose information regarding waste, fraud, or abuse related to a government contract without fear of reprisal. Contractors may not discharge or discriminate against whistleblowers.
Protecting the Government's Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment
Requires contractors to check SAM.gov before awarding subcontracts to verify that subcontractors are not debarred, suspended, or proposed for debarment. Prohibits awarding subcontracts to excluded parties.
Audit and Records — Negotiation
Gives the government the right to examine and audit contractor records related to contract pricing, cost, or performance for up to three years after final payment. Applies to negotiated contracts when cost or pricing data was required.
Employment Eligibility Verification (E-Verify)
Requires contractors to use the E-Verify system to verify the employment eligibility of all new hires and all employees assigned to work on the contract. Contractors must enroll in E-Verify within 30 days of award.
Covered Telecommunications Equipment or Services — Representation
Requires offerors to represent whether they provide or use covered telecommunications equipment or services from prohibited sources. Part of the Section 889 compliance framework alongside FAR 52.204-25.
Ordering (Indefinite-Delivery)
Establishes procedures for placing delivery orders or task orders against indefinite-delivery contracts. Specifies the ordering period, minimum and maximum order limitations, and the process for issuing orders.
Option to Extend Services
Gives the government a unilateral right to extend the term of a service contract for up to six months at the existing contract rates. The contracting officer must give preliminary notice at least 30 days before the contract expires.
Option to Extend the Term of the Contract
Allows the government to exercise options to extend the contract period. The total duration including options cannot exceed five years. Option pricing must be evaluated at the time of initial award.
What Is the FAR?
The Federal Acquisition Regulation (FAR) is the primary set of rules governing how the federal government buys goods and services. It covers everything from how solicitations are published to how contracts are awarded, performed, and closed out.
Understanding key FAR clauses is essential for government contractors. These clauses define your rights, obligations, and compliance requirements. This navigator covers the most important provisions you'll encounter in government solicitations and contracts.
Note: This tool provides plain-English summaries for educational purposes. Always refer to the official FAR text at acquisition.gov/far for authoritative language.
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