FAR clause decoder common clauses in plain English
Search the FAR clauses that show up in federal solicitations — SAM, set-asides, Section 889, the Service Contract Act and more — explained in plain English, each linked to the official text.
19 clauses
System for Award Management
You must be registered in SAM.gov to be eligible for award, and keep that registration active.
Why it matters: No active SAM.gov registration, no award — this is table stakes for every federal solicitation.
System for Award Management Maintenance
You must keep your SAM.gov record current and accurate throughout performance, not just at award.
Why it matters: A lapsed or stale registration during the contract can hold up payments and option exercises.
Basic Safeguarding of Covered Contractor Information Systems
Apply a set of basic cybersecurity safeguards to any system that processes, stores or transmits Federal Contract Information.
Why it matters: The floor of federal cyber hygiene — and the foundation the stricter CMMC / NIST 800-171 requirements build on.
Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment
You represent whether you provide, or use, certain prohibited Chinese-made telecom and surveillance equipment (Section 889).
Why it matters: A false or careless representation here carries real consequences — know your supply chain before you certify.
Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment
The government cannot contract with entities that use covered telecom/surveillance equipment (e.g., Huawei, ZTE, certain video surveillance brands).
Why it matters: This is the actual prohibition behind the 889 representation — using covered gear can disqualify you.
Instructions to Offerors—Commercial Products and Commercial Services
Sets out how to prepare and submit your offer on commercial buys — format, content, deadlines and what makes an offer responsive.
Why it matters: Miss an instruction here and you can be found non-compliant before anyone reads your technical approach.
Offeror Representations and Certifications—Commercial Products and Commercial Services
The representations and certifications you complete for commercial-item solicitations — including your small-business and socioeconomic status.
Why it matters: These reps drive set-aside eligibility and are legally binding; complete them accurately in SAM.gov and the offer.
Contract Terms and Conditions—Commercial Products and Commercial Services
The standard commercial contract terms — inspection/acceptance, invoicing and payment, changes, termination and disputes.
Why it matters: Your baseline rights and obligations on commercial work; read it before you price risk into your bid.
Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial
A checklist clause that incorporates the additional clauses required by law on a given commercial buy.
Why it matters: Tells you which extra obligations (labor, domestic preference, etc.) actually flow down to your contract.
Notice of Total Small Business Set-Aside
This solicitation is reserved entirely for small business — only small businesses may compete.
Why it matters: If you see this, confirm you’re small under the NAICS size standard before you invest in a bid.
Limitations on Subcontracting
On set-aside awards you must self-perform a minimum share of the work — for services, at least 50% of the cost of contract performance incurred for personnel (with credit for similarly situated subcontractors).
Why it matters: You can’t win a set-aside and pass most of the work to a large subcontractor — plan your teaming to comply.
Post-Award Small Business Program Rerepresentation
You must re-certify your business size at defined points — such as option exercises, a merger/acquisition, or the long-term contract anniversary.
Why it matters: Growing past the size standard mid-contract has reporting consequences; track your status over time.
Service Contract Labor Standards
On covered service contracts, you must pay service employees the prevailing wages and fringe benefits in the applicable Department of Labor wage determination.
Why it matters: SCA wage determinations directly drive your labor cost — price to them or you’ll under-bid your own obligations.
Combating Trafficking in Persons
Prohibits trafficking-related activities and requires compliance (and, on larger overseas efforts, a compliance plan).
Why it matters: A baseline ethics/compliance obligation that flows down to your subcontractors.
Buy American—Supplies
Establishes a preference for domestic end products on supply contracts, with defined evaluation treatment for foreign products.
Why it matters: If you’re supplying goods, country of origin affects both compliance and your price competitiveness.
Payment by Electronic Funds Transfer—System for Award Management
You’ll be paid by EFT to the bank account in your SAM.gov registration.
Why it matters: Wrong or missing banking details in SAM.gov delay payment — verify them before award.
Service of Protest
Tells you where and how to serve an agency-level protest, and the timing involved.
Why it matters: If you need to protest an award decision, this clause governs how to do it correctly.
Option to Extend the Term of the Contract
Gives the government the right to unilaterally extend the contract by exercising option periods on stated notice.
Why it matters: Your contract value and pricing should account for option years the government may or may not exercise.
Contractor Code of Business Ethics and Conduct
Larger contracts require a written code of business ethics and, above certain thresholds and durations, an internal compliance/training program.
Why it matters: Once your contracts reach the covered size, you need the ethics program in place — not after the fact.
Plain-English summaries for the clauses bidders meet most — these are explanations, not the official regulatory text, and the FAR is revised over time. Always read the authoritative, current clause at acquisition.gov and follow the exact language in your solicitation.
Read the clauses before you bid
Every federal solicitation incorporates FAR clauses by number, and they carry real obligations — some affect your eligibility (set-asides), some your cost (Service Contract Act wages), some your supply chain (Section 889), and some your contract terms (options, payment, termination). The clauses you don’t recognize are exactly the ones worth looking up before you commit to a response.
This decoder covers the clauses bidders meet most often. It’s a fast orientation, not legal advice — for the authoritative language, always read the current clause at acquisition.gov and follow your solicitation exactly.
From clauses to a compliant proposal
Understanding the clauses is half the battle; building a response that satisfies them is the other half. Lay a solicitation out as a requirement-by-requirement matrix with the RFP compliance analyzer, confirm your set-aside eligibility, and let GovCon help you draft a proposal that tracks Section L and M — and the clauses that come with them.
Frequently asked questions
What is the FAR?+
The Federal Acquisition Regulation (FAR) is the rulebook that governs how the U.S. government buys goods and services. Solicitations and contracts incorporate FAR clauses — by number — that set out your obligations, certifications and terms. Knowing what the common ones mean is part of bidding competently.
Is this the official clause text?+
No. These are plain-English summaries to help you quickly understand what a clause is about and why it matters. They are not the regulatory text, and the FAR changes over time. Every clause here links to the authoritative, current version at acquisition.gov — and you should always follow the exact language in your specific solicitation.
What does "Section 889" mean (FAR 52.204-24/25)?+
Section 889 prohibits the government from contracting with companies that use certain Chinese-made telecommunications and video-surveillance equipment (such as Huawei and ZTE). You represent your status under 52.204-24 and are bound by the prohibition in 52.204-25 — so you need to actually know your supply chain before you certify.
What is "limitations on subcontracting" (FAR 52.219-14)?+
On a small-business set-aside, you can’t win the work and then pass most of it to a large subcontractor. For services, the rule generally requires that at least 50% of the cost incurred for personnel be spent on your own employees (with credit for similarly situated small subcontractors). It’s a key constraint when you plan teaming on set-asides.
How do I know which clauses apply to my bid?+
Your solicitation lists them — often in the clauses/provisions section and in checklist clauses like FAR 52.212-5 for commercial buys. Read those, look up the ones you don’t recognize, and price any cost or compliance impact (for example, Service Contract Act wages) into your bid before you submit.
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