Procurement10 min read

A Federal Procurement Primer: How the FAR Governs Buying

Federal procurement is the largest buying operation in the world, with U.S. agencies spending hundreds of billions of dollars a year on goods and services. For companies, understanding how that spending is governed — the rules, the contract vehicles, and how award decisions are made — is the foundation of a successful federal strategy. At the center of it all is the Federal Acquisition Regulation, or FAR. This primer covers what you need to know.

What Is Federal Procurement?

Federal procurement is the process by which executive-branch agencies — the Department of Defense, civilian agencies like GSA, HHS, and DHS, and their many components — buy goods and services using appropriated funds. Unlike commercial purchasing, federal buying is governed by law and regulation. The cornerstone is the Federal Acquisition Regulation (FAR), codified in Title 48 of the Code of Federal Regulations, with the DFARS adding defense-specific rules on top. The guiding principles are full and open competition, integrity, and fair treatment so that every responsible offeror has a fair opportunity to compete for public dollars.

Competition Thresholds and Simplified Acquisition

How an agency buys depends largely on the dollar value. Micro-purchases — generally up to $10,000 — can be made with a government purchase card and minimal process. Acquisitions up to the Simplified Acquisition Threshold (currently $250,000) can use the streamlined procedures of FAR Part 13, often as an RFQ with fewer formalities. Above that level, agencies typically run a full RFP under FAR Part 15 with formal Section L instructions and Section M evaluation factors. There is also a commercial-products threshold under FAR Part 12 that lets agencies buy commercial items with simplified terms. These dollar figures are adjusted for inflation periodically — always confirm the current thresholds in the FAR before relying on them.

The Main Solicitation Types and Contract Vehicles

Sources Sought / RFI — pre-solicitation market research. No award is made, but responding shapes the requirement and signals your capability to the contracting officer
IFB (Invitation for Bids) — sealed bidding under FAR Part 14. Award goes to the lowest responsive, responsible bidder. Used when requirements are clear and price is the deciding factor
RFQ (Request for Quotation) — common for simplified acquisitions and orders. The government requests pricing and terms; quotes are not offers the agency can simply accept
RFP (Request for Proposals) — negotiated procurement under FAR Part 15. Offerors submit technical and price proposals evaluated against Section M factors, often on a best-value basis
IDIQ, GWACs, GSA Schedules (MAS) and BPAs — pre-competed contract vehicles. Agencies issue task or delivery orders to holders without running a full open competition each time

How Federal Proposals Are Evaluated

Negotiated proposals are evaluated against the factors published in Section M of the solicitation. Many awards use a best-value tradeoff, where the agency weighs non-price factors — technical approach, management, and past performance — against price and may pay more for a stronger proposal. Others use lowest-price technically acceptable (LPTA), where the cheapest compliant proposal wins. Evaluators assign adjectival or color ratings and document strengths, weaknesses, and deficiencies in a source selection record. The single biggest driver of success is understanding exactly what each factor is assessing — and writing directly and compliantly to Section L and Section M.

The FAR and DFARS

The Federal Acquisition Regulation is the uniform rulebook every executive agency must follow, covering competition, contract types, clauses, ethics, and small business participation under FAR Part 19. Defense components add the Defense Federal Acquisition Regulation Supplement (DFARS), which layers in requirements such as cybersecurity (DFARS 252.204-7012 and CMMC) and domestic-sourcing rules. Each agency may also issue its own FAR supplement. Offerors should know which clauses apply to a given solicitation, because the incorporated FAR and DFARS clauses define your obligations once you are on contract.

Strategies for Winning More Federal Business

Engage before the RFP — capture management starts early. Respond to Sources Sought and RFIs and meet contracting officers and end users before the solicitation drops
Get on the right vehicles — agencies favor IDIQs, GWACs, and GSA Schedules because they reduce acquisition risk and cycle time. Securing a seat is one of the highest-return moves in business development
Build documented past performance — agencies are risk-averse, and recent, relevant performance with strong CPARS ratings is the most powerful evidence in any proposal
Invest in proposal quality — compliant, well-written responses to Section L and Section M are the primary determinant of whether you win. Use tools like GovCon to accelerate and improve your drafting

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Frequently Asked Questions

What is the FAR?

The Federal Acquisition Regulation (FAR) is the primary rulebook governing how executive-branch agencies buy goods and services. It is codified in Title 48 of the Code of Federal Regulations and sets uniform policies for everything from competition and contract types to clauses, ethics, and small business participation. Defense agencies layer the DFARS on top of it.

Do I need to be registered to win a federal contract?

Yes. Before an agency can award you a contract, your company must have an active registration in SAM.gov, including a Unique Entity ID and your NAICS codes. You should also confirm your small-business status and any socioeconomic certifications (8(a), WOSB, SDVOSB, HUBZone) so you can compete for set-asides.

What is a set-aside in federal contracting?

A set-aside reserves a contract — or a portion of it — for small businesses or specific socioeconomic categories such as 8(a), WOSB/EDWOSB, SDVOSB, or HUBZone firms. The FAR (Part 19) directs contracting officers to set aside acquisitions when there is a reasonable expectation of competition among eligible small businesses at fair market prices.

How long does the federal procurement process take?

Simplified acquisitions and many RFQs can move in 30–90 days. Full RFPs under FAR Part 15 often run 90–180 days or more, including a Sources Sought or RFI phase, proposal evaluation, and source selection. Task orders off an existing IDIQ or GWAC can be much faster — sometimes days to a few weeks.

What is the difference between best-value tradeoff and LPTA?

Under a best-value tradeoff (FAR 15.101-1), the agency may pay more for a superior proposal, weighing factors like technical approach and past performance against price. Under lowest-price technically acceptable (LPTA), the award goes to the cheapest proposal that meets the stated minimum requirements. Section M of the solicitation tells you which approach applies.

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