What Is the FAR? A Plain-Language Guide for Small Business Contractors

What is the FAR? The Federal Acquisition Regulation (FAR) is the rulebook the federal executive branch uses to buy goods and services. That is the complete answer. Everything else in this article is detail about how the rulebook is organized, who writes it, and which sections of it you will actually see as a small business contractor.

The FAR is codified at Title 48, Chapter 1 of the Code of Federal Regulations (CFR). It was published on September 19, 1983 and became effective April 1, 1984. Every federal executive branch agency that spends appropriated funds on a contract follows it. That includes the Department of Defense (DoD), the General Services Administration (GSA), the Department of Veterans Affairs (VA), the Department of Homeland Security (DHS), and every other cabinet-level agency.

If you have heard someone in federal contracting mention “the FAR,” they meant this document. It sets the rules for how agencies advertise contracts, how they evaluate proposals, what clauses go in a contract, and how disputes get resolved. For a small business entering the federal market, the FAR is the first piece of background you need before anything else makes sense.

What Is the FAR? Plain-Language Definition

The FAR is a regulation, not a statute. Congress did not pass it as a law. Three federal officials issue and maintain it jointly: the Secretary of Defense, the Administrator of General Services (GSA), and the Administrator of the National Aeronautics and Space Administration (NASA). They act under the policy guidance of the Administrator of the Office of Federal Procurement Policy (OFPP), which sits inside the Office of Management and Budget (OMB).

The statutory authority for the FAR comes from 41 U.S.C. Chapter 13, which created the FAR Council and established the legal framework for government-wide procurement rules. Additional authority comes from 40 U.S.C. Section 121(c), which gives the GSA Administrator authority over federal acquisition matters. Because the FAR is issued under statutory authority, it carries the force of law for executive branch agencies and their contracting officers. If a statute directly conflicts with the FAR, the statute wins.

Before the FAR existed, the federal government operated under separate and often contradictory rulebooks. DoD used the Defense Acquisition Regulation (DAR). Civilian agencies followed the Federal Procurement Regulation (FPR). NASA had its own rules. The FAR, effective April 1, 1984, replaced all of them with one government-wide document. The goal was to cut down a burdensome mass of fragmented procurement rules and give everyone a single reference point.

The FAR is updated through Federal Acquisition Circulars (FACs). Most updates go through the Administrative Procedure Act (APA) notice-and-comment process: a proposed rule is published in the Federal Register, the public comments, and a final rule is issued. Open FAR cases are tracked at the DoD acquisition regulations site and in the Unified Agenda on RegInfo.gov.

How the FAR Is Organized

The FAR has 53 numbered Parts. Parts 20 and 21 are currently reserved (blank), so 51 Parts are in active use. The Parts are grouped into eight Subchapters, labeled A through H. Within each Part, you will find Subparts, Sections, and Subsections. When someone cites “FAR 19.502-2,” that means Part 19, Subpart 19.5, Section 502, paragraph 2.

The 8 Subchapters

• Subchapter A (Parts 1-4): General rules covering the FAR system itself, definitions, business ethics, and administrative matters like SAM.gov registration requirements.
• Subchapter B (Parts 5-12): Acquisition planning, from publicizing contracts to required sources to commercial item acquisitions.
• Subchapter C (Parts 13-18): Contracting methods and contract types, including simplified acquisitions, sealed bidding, negotiation, and contract type selection.
• Subchapter D (Parts 19-26): Socioeconomic programs, including small business set-asides, labor standards, environmental requirements, foreign acquisition rules, and privacy protections.
• Subchapter E (Parts 27-33): General contracting requirements: patents, bonds, taxes, cost accounting, contract financing, and protest procedures.
• Subchapter F (Parts 34-41): Special categories of contracting, including major systems, research and development, construction, services, IT, and information security.
• Subchapter G (Parts 42-51): Contract management covering administration, modifications, subcontracting, government property, quality assurance, transportation, and termination.
• Subchapter H (Parts 52-53): Solicitation provisions, contract clauses, and required forms. This is the operational heart of the FAR for most contractors.

The 53 Parts at a Glance

This table shows all 53 FAR Parts verified against the official acquisition.gov table of contents as of April 2026. Part 40 is the newest, established by final rule effective April 1, 2024.

Who Writes the FAR

The FAR Council (formally the Federal Acquisition Regulatory Council) creates and maintains the FAR. The Council is statutory, established under 41 U.S.C. Chapter 13. Its three principals are the Administrator of GSA, the Secretary of Defense, and the Administrator of NASA. The OFPP Administrator coordinates policy and provides direction to the Council.

Day-to-day drafting and coordination run through two working councils, as established in FAR 1.201-1. The Civilian Agency Acquisition Council (CAA Council, also called CAAC) is chaired by a GSA representative and includes 19 member agencies: 14 cabinet departments (Agriculture, Commerce, Education, Energy, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, Justice, Labor, State, Transportation, Treasury, and Veterans Affairs) plus 5 independent agencies (Environmental Protection Agency, NASA, Social Security Administration, Small Business Administration, and the U.S. Agency for International Development). The Defense Acquisition Regulations Council (DAR Council) is directed by a Secretary of Defense representative and includes the military departments, the Defense Logistics Agency (DLA), and the Defense Contract Management Agency (DCMA).

The FAR Council assigns each Part to either the DAR Council or CAAC as the primary drafting body. The other council reviews and agrees. Most substantive changes go through notice-and-comment rulemaking under the Administrative Procedure Act. Proposed rules are published in the Federal Register. The public can comment. Final rules are issued through Federal Acquisition Circulars. The process is open, and you can participate. That matters when a rule change affects your industry.

FAR Supplements: When Agencies Add Their Own Rules

Each major federal agency layers its own supplement on top of the FAR. A supplement can add agency-specific clauses, raise certain thresholds, or carry out statutes that apply only to that agency. What a supplement cannot do is contradict the FAR. The FAR is the floor. Supplements build on it.

Supplement Part numbers follow a consistent pattern. A supplement’s Part 219, for example, covers small business programs for that agency and supplements FAR Part 19. Part 252 of a supplement holds that agency’s unique clauses, paralleling FAR Part 52. When you read a DoD solicitation, you will see both FAR and Defense Federal Acquisition Regulation Supplement (DFARS) clauses cited side by side.

If you pursue DoD work, you will read both the FAR and DFARS regularly. If you work with GSA, you will add the GSAM. Most small businesses start with one agency and learn that agency’s supplement alongside the base FAR.

The FAR 2.0 Overhaul

The FAR is in the middle of its biggest rewrite since 1984. Executive Order 14275, “Restoring Common Sense to Federal Procurement,” was signed April 15, 2025, and published in the Federal Register on April 18, 2025. The order directs the OFPP Administrator and the FAR Council to strip out non-statutory provisions and rewrite the FAR in plain language. Non-statutory provisions face a four-year sunset under EO 14275 Section 6 unless the FAR Council renews them.

OFPP Memo M-25-25 (May 2, 2025), issued to implement the EO, named a new construct called Strategic Acquisition Guidance (SAG) that will hold non-statutory buying guides outside the FAR itself. Phase 1 consists of interim class deviations already in effect at DoD and other agencies. Phase 2 is formal rulemaking planned through the rest of 2026.

The FAR Parts a Small Business Actually Hits

You do not need to read all 53 Parts before you can compete for a federal contract. Most small businesses encounter five or six Parts repeatedly. The rest you can look up as needed.

Part 4: Administrative Matters

Part 4 is where SAM.gov (System for Award Management) registration lives. FAR 4.11 requires contractors to be registered in SAM.gov before the government can award a contract. This Part also covers taxpayer identification number rules, system representations and certifications, and contract file requirements. If you are not registered in SAM.gov, nothing else in the FAR matters yet. For step-by-step registration guidance, see How to Register for Government Contracting.

Part 12: Commercial Products and Commercial Services

Part 12 covers acquisitions of products and services that the government considers commercially available. This is the entry point for most small service businesses. The clause set under Part 12 is shorter and simpler than what applies to other contract types. The core clauses at FAR 52.212-1 through 52.212-5 cover instructions to offerors, contract terms, and key compliance requirements. If your work is the kind of thing you also sell to private companies, Part 12 is likely where your contract will land.

Part 13: Simplified Acquisition Procedures

Part 13 covers purchases at or below the Simplified Acquisition Threshold (SAT), currently $250,000 for most acquisitions. Below that threshold, agencies can buy faster, with fewer required steps and less paperwork. This is the sweet spot for first-time contractors. Awards happen faster. The evaluation process is simpler. For everything you need to know about the SAT, see The Simplified Acquisition Threshold.

Part 19: Small Business Programs

Part 19 is where small business set-asides live. The Rule of Two at FAR 19.502-2 says that if two or more small businesses can do the work at a fair price, the contracting officer must set the contract aside for small businesses only. Part 19 also covers the 8(a) Business Development Program, HUBZone, Service-Disabled Veteran-Owned Small Business (SDVOSB), and Women-Owned Small Business (WOSB) programs. If you have a socioeconomic certification, Part 19 is what makes it valuable. For a full explanation of set-asides, see Government Contract Set-Asides.

Part 31: Cost Principles

Part 31 covers which costs are allowable, allocable, and reasonable on cost-reimbursement and time-and-materials contracts. The Defense Contract Audit Agency (DCAA) uses Part 31 as its framework when auditing contractor accounting systems. If you are bidding only on fixed-price work, Part 31 is mostly background. If you ever pursue cost-plus contracts, it becomes essential reading. For a full breakdown, see Indirect Cost Rates for Government Contractors.

Part 52: Contract Clauses

Part 52 is the master library of every FAR clause. When a solicitation lists applicable clauses, every clause number you see (52.219-8, 52.222-26, 52.232-25, etc.) refers to a specific provision in Part 52. This is the Part you read when you want to know exactly what a clause requires of you. It is also the Part that determines what you flow down to subcontractors. A subcontractor is not subject to all 53 Parts of the FAR. They are only subject to the specific clauses the prime contract requires to be passed down. Part 52 tells you which ones those are. For more on how this works in practice, see FAR Compliance for Small Business Contractors.

Five Common Misconceptions About the FAR

The FAR comes wrapped in myths. Most competitor articles do not address them. Here are the ones that trip up small businesses the most.

1. The FAR is a law. It is not. The FAR is a regulation issued by executive agencies under statutory authority (41 U.S.C. Chapter 13 and 40 U.S.C. Section 121). It has the force of law for executive branch agencies, but Congress did not pass it. If a statute and the FAR conflict, the statute controls. The FAR cannot override an Act of Congress.

2. The FAR applies to grants. It does not. Grants and cooperative agreements are financial assistance, not procurement. They follow 2 CFR Part 200, the Uniform Guidance. If a federal agency gives your organization a grant, the FAR does not govern that relationship. SBIR and STTR awards are a common gray area because some agencies use grants and others use contracts. The rulebook that applies depends on the instrument your agency uses.

3. The FAR applies to state and local government contracts. It does not. The FAR governs only federal executive branch acquisitions. State and local procurement follows state law, model codes, and local ordinances. If a state agency receives a federal pass-through grant and some federal terms flow down, those terms come from 2 CFR 200 and specific grant conditions, not the FAR directly.

4. Subcontractors must follow the entire FAR. They do not. Subcontractors are bound only by the FAR clauses the prime contract specifically requires to be passed down. Per FAR 52.244-6, commercial subcontracts have a defined and limited set of flow-down requirements. A small subcontractor on a DoD job does not suddenly become subject to all 53 Parts of the FAR plus DFARS.

5. DFARS is the same as the FAR. It is not. The FAR is the government-wide rulebook for all federal executive branch agencies. The DFARS is the DoD-specific supplement that layers DoD requirements on top of the FAR. Every DoD contract follows both. Non-DoD contracts follow only the FAR and the relevant civilian agency supplement, if any.

Where to Read the FAR (All Free)

You do not need to buy the FAR. Every version is publicly available at no cost.

• acquisition.gov/far: The official FAR text, updated after each Federal Acquisition Circular. This is the primary reference. Bookmark it.
• ecfr.gov (Title 48): The FAR cross-referenced with the rest of the Code of Federal Regulations. Useful when you need to trace a regulatory citation to its statutory source.
• acquisition.gov/browse/index/far: The complete FAR table of contents, useful for scanning all 53 Parts quickly.
• Federal Register: Proposed rules and final rule preambles. If you want to understand why a rule changed, the preamble explains the reasoning behind the agency’s decision.
• GAO protest decisions at gao.gov: The Government Accountability Office (GAO) issues decisions on bid protests that interpret the FAR in real cases. Reading protest decisions is one of the most practical ways to understand how contracting officers apply FAR rules on the ground.

Frequently Asked Questions

What does FAR stand for?

FAR stands for Federal Acquisition Regulation. It is the rulebook the federal executive branch uses when buying goods and services with appropriated funds. Every federal agency that spends congressionally appropriated money on a contract follows the FAR. The official text lives at acquisition.gov/far.

When did the FAR come into effect?

The FAR was published on September 19, 1983, and became effective April 1, 1984. It replaced three separate rulebooks that existed before it: the Defense Acquisition Regulation (DAR) used by DoD, the Federal Procurement Regulation (FPR) used by civilian agencies, and the NASA procurement regulation. The goal was to consolidate fragmented procurement rules into one government-wide document. The FAR marked its 40th anniversary in 2024.

Is the FAR a law?

No. The FAR is a regulation, not a statute. Congress passes statutes. The FAR is issued by the Secretary of Defense, the GSA Administrator, and the NASA Administrator under authority granted by statutes including 41 U.S.C. Chapter 13 and 40 U.S.C. Section 121(c). The FAR has the force of law for executive branch agencies, but a statute always takes priority over the FAR if the two conflict. Courts and Congress are not bound by the FAR.

Who enforces the FAR?

Federal agency contracting officers are the front-line enforcers. They include FAR clauses in solicitations, evaluate proposals against FAR requirements, and administer the resulting contracts. GAO decides bid protests under FAR Part 33 (Protests, Disputes, and Appeals), though GAO decisions are technically non-binding recommendations rather than court orders. The Court of Federal Claims and the Boards of Contract Appeals hear formal contract disputes. DCAA audits cost-reimbursement contracts. Inspectors General and the Department of Justice handle fraud cases.

What is FAR Part 52?

FAR Part 52 is the master library of solicitation provisions and contract clauses. When a solicitation lists applicable FAR clauses (for example, 52.219-8, 52.222-26, or 52.232-25), each clause number refers to a specific provision in Part 52. This is the operational heart of the FAR for contractors. It is also what you look at when determining which clauses must be passed down to subcontractors, because most flow-down obligations come from language embedded in each Part 52 clause.

What is the difference between the FAR and DFARS?

The FAR is the government-wide rulebook for all federal executive branch agencies. The DFARS (Defense Federal Acquisition Regulation Supplement) is the DoD-specific supplement that layers DoD requirements on top of the FAR. Every DoD contract follows both. DFARS adds requirements around cybersecurity (including CMMC and NIST 800-171), Buy American requirements specific to defense, and DoD-unique contract clauses. The DFARS lives at 48 CFR Chapter 2. Non-DoD contracts follow only the FAR and the relevant civilian agency supplement.

How many Parts are in the FAR?

The FAR has 53 numbered Parts. Parts 20 and 21 are currently reserved (blank), so 51 Parts are in active use. The Parts are organized into eight Subchapters (A through H). Part 40, Information Security and Supply Chain Security, is the newest. It was established by final rule effective April 1, 2024, and consolidates supply chain risk and information security requirements that previously lived across multiple other Parts.

Is the FAR being updated?

Yes. Executive Order 14275, signed April 15, 2025, directs the FAR Council to cut non-statutory provisions and rewrite the FAR in plain language. Non-statutory provisions face a four-year sunset under EO 14275 Section 6 unless renewed. Phase 1 consists of interim class deviations already in effect at DoD and other agencies as of early 2026. Phase 2 is formal notice-and-comment rulemaking planned through 2026. OFPP Memo M-25-25 (May 2, 2025) named a new construct called Strategic Acquisition Guidance (SAG) to hold non-statutory buying guides outside the FAR.