For federal contractors, ensuring compliance with both the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS) is a critical aspect of operations. This comprehensive guide explores the essentials of FAR and DFARS, shedding light on the intricate world of government contracts and cybersecurity measures.
At its core, FAR revolves around the concept of allowability, defining permissible charges in government contracts. Serving as the primary regulation for all Federal Executive agencies, FAR guides the acquisition of supplies and services with appropriated funds, as highlighted by GSA.gov.
Issued over 40 years ago through the Office of Federal Procurement Policy Act of 1974, FAR remains a living standard jointly issued and maintained by the Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA), shaping the landscape of government acquisitions.
Untangling FAR and Cost Accounting Standards (CAS), this section provides clarity on compliance, demystifying exemptions, standards, and disclosures to simplify what may seem like a complex puzzle.
The primary goal of FAR is to establish a published standard set of policies and procedures for federal agencies during the procurement process. Rooted in Section 1.102, the Federal Acquisition System aims to satisfy customers in terms of cost, quality, and timeliness, emphasizing objectives like maximizing the use of commercial products, promoting competition, and conducting business with integrity and fairness.
FAR compliance is a vital process for federal government contractors providing goods or services to federal agencies. It distinguishes the contracting landscape with the Executive branch from dealings with commercial entities. Addressing a common query – "Does FAR apply to all government agencies?" – the answer is no. FAR governs contracts exclusively with the Executive branch, with separate regulations overseeing contracts with the Legislative and judicial branches.
Contracts with the Legislative branch (Congress) fall under the purview of the Congressional Budget Office (CBO), while those with the judicial branch adhere to Judiciary Policy – Volume 14 (Procurement). Most contracts with the federal government, however, are governed by FAR, with each contract containing specific FAR clauses applicable to the agreement.
FAR applies to solicitations (IFB, RFP, RFQ, RFI), federal prime contracts, and subcontracts under federal prime contracts. Contractors bear the responsibility of meticulously reading and understanding each FAR clause referenced in the contract before signing any binding agreement.
In response to escalating cyber threats, the U.S. Department of Defense mandates rigorous cybersecurity measures for external contractors and suppliers. This comprehensive guide breaks down DFARS regulations, elucidates minimum requirements, and provides tailored solutions to ensure your compliance journey is seamless.
Responding to cyber threats, the U.S. Department of Defense introduced DFARS in December 2015, aligning with National Institute of Standards and Technology (NIST) SP 800-171 standards. This regulatory framework compels DoD contractors to safeguard Controlled Unclassified Information (CUI), with a compliance deadline set on December 31, 2017.
Securing DoD contracts demands adherence to minimum requirements, emphasizing:
While seemingly straightforward, achieving "adequate security" encompasses fourteen security requirement groups, impacting various aspects of IT information security. Non-federal entities must undergo a readiness assessment based on NIST SP 800-171 guidelines for DFARS compliance.
For DoD contractors operating beyond technical realms, meeting evolving security standards poses challenges. The DFARS compliance process necessitates ongoing dedication of man-hours and resources, prompting many to seek expert assistance.
Non-compliance risks stop-work orders, financial penalties, and contract termination. Section 252.204-7014 of DFARS outlines penalties, emphasizing the need for proactive compliance.
DFARS (Defense Federal Acquisition Regulation Supplement) and CMMC (Cybersecurity Maturity Model Certification) are both related to cybersecurity requirements for contractors working with the United States Department of Defense (DoD), but they serve different purposes and have distinct features. Here are the key differences between DFARS and CMMC:
In conclusion, understanding and ensuring compliance with both the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS) are crucial for federal contractors. See how Coalfire Federal can help your business with their government contracts today.
