Understanding federal government regulations is crucial for government contractor organizations. Two significant sets of regulations are the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS). FAR outlines the rules and procedures for procurement, contract types, and overall contract administration, ensuring transparency and trust between contractors and the government. Additionally, DFARS supplements FAR by providing specific regulations for contracts involving Controlled Unclassified Information under the Department of Defense (DoD). Compliance with both FAR and DFARS is vital for organizations aiming to work with the government, especially in maintaining cybersecurity standards.
What is the Federal Acquisition Regulation (FAR)?
FAR compliance is essential for government contractors to maintain their relationships with the federal government. It comprises regulations that govern the procurement of goods and services by executive agencies. Compliance with FAR ensures transparent transactions and helps in establishing trust between contractors and the government. FAR outlines the types of contracts, such as fixed-price, cost-reimbursement, and incentive contracts, that are governed by its regulations. It also applies specifically to contracts awarded by agencies within the executive branch, such as the DoD, the Department of Justice, and the Department of Veterans Affairs.
FAR not only establishes guidelines for how government-issued contracts are accepted, but it also provides standards for the entire contract cycle, including acquisition planning, source selection, and contract administration. It serves as a comprehensive manual that contractors must follow to deliver goods and services to federal agencies, ensuring that the products and services delivered are of high quality while maintaining public trust and fulfilling public policy objectives.
What is the Defense Federal Acquisition Regulation Supplement (DFARS)?
DFARS is a supplement to FAR, and contractors must comply with both when working on DoD contracts. FAR applies to all federal contracts, while DFARS only applies to contracts involving Controlled Unclassified Information (CUI) under the DoD. Compliance with DFARS is essential for organizations working directly with the government, as it includes specific cybersecurity regulations. The focus of DFARS is to ensure the security of DoD contracts and requires contractors to maintain a secure accounting system and promptly report any security issues to the DoD.
Using Technology to Meet Complex Requirements
Meeting the complex requirements set forth in federal government regulations is tricky for government contractor firms of all sizes. You may find that a straightforward way to ensure compliance is to leverage technology. Deltek Costpoint is a trusted solution with built-in functionality and a framework that complies with government regulations like FAR and DFARS. The team of consultants here at PCI has successfully completed over 900 Deltek Costpoint implementations; contact us today to request a demo or find out how we can help your business stay compliant with the latest regulations.
Want to learn more? Download a free copy of our new guide: Three Steps to Successful GovCon Manufacturing with PCI and Deltek.
