Common Mistakes Made by New FAR Users and How to Avoid Them

The Federal Acquisition Regulation (FAR) is a comprehensive set of rules governing federal procurement processes. While it provides a standardized framework for acquiring goods and services, navigating its complexities can be challenging for new users. Here are some common mistakes made by new FAR users and tips on how to avoid them.

1. Lack of Understanding of the FAR Structure and Purpose

Mistake: New users often fail to grasp that the FAR is not just a collection of rules but a comprehensive set of policies and procedures designed to ensure fair and efficient federal procurement.

Solution: Invest time in understanding the overall structure and purpose of the FAR. Familiarize yourself with its key sections and how they interrelate. Consider taking a foundational course on the FAR to build a solid understanding.

2. Overlooking Important Sections

Mistake: Users may focus only on certain parts of the FAR while neglecting other crucial sections that could impact their contracting activities.

Solution: Conduct a thorough review of the FAR, paying attention to sections that are relevant to your specific contracting needs. Use resources like the FARSite or the Acquisition.gov website to search for and study pertinent sections.

3. Misinterpreting Clauses

Mistake: The language in the FAR can be complex, leading to misinterpretation of important clauses and requirements.

Solution: Take the time to carefully read and understand each clause. When in doubt, seek clarification from contracting officers or legal advisors. Utilize resources like the FAR Council's FAQs and interpretations.

4. Failing to Stay Updated

Mistake: The FAR is regularly updated, and new users might not keep track of changes, leading to compliance issues.

Solution: Subscribe to FAR update notifications and regularly check for amendments. Join professional organizations and forums that discuss FAR updates and best practices.

5. Ignoring the Importance of SAM Registration

Mistake: Inadequate or outdated System for Award Management (SAM) registration can disqualify a business from federal contracting opportunities.

Solution: Ensure your SAM registration is complete, accurate, and up-to-date. Regularly review and update your SAM profile to reflect any changes in your business.

6. Misclassifying Business Using NAICS Codes

Mistake: Incorrect North American Industry Classification System (NAICS) codes can result in missed opportunities or incorrect bids.

Solution: Carefully select the NAICS codes that accurately represent your business's products and services. Review the NAICS code descriptions and consult with experts if necessary.

7. Poor Proposal Preparation

Mistake: New users often fail to follow proposal guidelines meticulously or address specific requirements in solicitations.

Solution: Read the solicitation documents thoroughly and follow all instructions. Address each requirement clearly and concisely. Consider using proposal templates and checklists to ensure completeness.

8. Overlooking Compliance Requirements

Mistake: Failing to meet various federal regulations, including cybersecurity standards, can disqualify a bid.

Solution: Familiarize yourself with all compliance requirements relevant to your contract. Implement necessary measures to meet these standards and maintain documentation to prove compliance.

9. Misunderstanding Contract Types

Mistake: Different contract types (e.g., fixed-price, cost-reimbursement) have different requirements and risks that new users might not fully comprehend.

Solution: Study the different types of contracts and understand their implications. Seek guidance from experienced contractors or legal advisors to choose the right contract type for your business.

10. Failing to Recognize the Importance of Past Performance

Mistake: New users might not understand how crucial past performance is in federal contracting evaluations.

Solution: Build a strong portfolio of past performance by delivering high-quality services and maintaining good relationships with clients. Document your successes and use them to strengthen future proposals.

11. Not Seeking Clarification on Ambiguities

Mistake: Failing to ask questions about unclear terms or requirements in solicitations can lead to problems later.

Solution: If you encounter ambiguities, reach out to the contracting officer for clarification. Participate in pre-bid conferences and submit questions in writing if allowed.

12. Overlooking the Importance of Proper Documentation

Mistake: New users might not maintain adequate records to support their contracting activities and decisions.

Solution: Implement a robust documentation system to track all aspects of your contracting activities. Keep detailed records of communications, decisions, and performance metrics.

Navigating the FAR can be daunting for new users, but by avoiding these common mistakes and implementing best practices, you can improve your chances of success in federal contracting. Continuous learning, seeking expert advice, and staying updated on FAR changes are key to mastering the complexities of federal procurement.

What is the Federal Acquisition Regulation (FAR)?

Key points about the FAR:

• It defines what costs can and cannot be charged to the government through contracts
• It aims to ensure consistent and uniform procurement policies across agencies
• It was established over 40 years ago through the Office of Federal Procurement Policy Act of 1974
• It is jointly maintained by the Department of Defense, NASA, and the General Services Administration

Purpose and Goals of the FAR

The main purposes of the FAR are to:

• Deliver the best value products/services to the government
• Maintain public trust in the procurement process
• Meet public policy objectives

Specific goals include:

• Satisfying customer needs (cost, quality, timeliness)
• Maximizing use of commercial products/services
• Promoting competition
• Minimizing administrative costs
• Conducting business with integrity and fairness
• Fulfilling public policy objectives

Key Sections of the FAR

Some important parts of the FAR for contractors to understand include:

• Part 11: Describing Agency Needs
• Part 13: Simplified Acquisition Procedures
• Part 15: Contracting by Negotiation
• Part 19: Small Business Programs
• Part 52: Solicitation Provisions and Contract Clauses

Part 52 is especially important as it contains the standard contract clauses and provisions that appear in solicitations and contracts.

FAR Compliance for Contractors

To comply with FAR, contractors should:

• Familiarize themselves with relevant FAR sections for their industry/contracts
• Pay close attention to clauses and provisions in Part 52
• Understand ethics and pricing requirements
• Follow bidding procedures carefully
• Stay updated on FAR changes and updates

Key Takeaways for Beginners

• The FAR governs federal procurement for executive agencies
• It provides standardized policies to ensure fairness and best value
• Understanding relevant FAR sections is crucial for contractors
• Part 52 contains important contract clauses and provisions
• Compliance requires ongoing education and attention to detail

While complex, gaining a basic understanding of the FAR is essential for success in government contracting. Consulting experts and utilizing available resources can help navigate the regulations effectively.

Looking forward,

Contracting Catalyst