FAR Part 2 - Definitions of Words and Terms 2.000 Scope of part. Subpart 2.1—Definitions 2.101 Definitions. Subpart 2.2—Definitions Clause 2.201 Contract clause.

FAR 2.000 Scope of part This part – (1) Defines words and terms that are frequently used in the FAR; (2) Provides cross-references to other definitions in the FAR of the same word or term; and (3) Provides for the incorporation of these definitions in solicitations and contracts by reference. (b) Other parts, subparts, and sections of this regulation (48 CFR Chapter 1) may define other words or terms and those definitions only apply to the part, subpart, or section where the word or term is defined (see the Index for locations).

Subpart 2.1—Definitions 2.101 Definitions (a) A word or a term, defined in this section, has the same meaning throughout this regulation, unless— (1) The context in which the word or term is used clearly requires a different meaning; or (2) Another FAR part, subpart, or section provides a different definition for the particular part or portion of the part. (b) If a word or term that is defined in this section is defined differently in another part, subpart, or section of this regulation, the definition in— (1) This section includes a cross-reference to the other definitions; and (2) That part, subpart, or section applies to the word or term when used in that part, subpart, or section.

FAR 2.101  Definitions. “Acquisition” means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract.

FAR 2.101  Definitions. “Affiliates” means associated business concerns or individuals if, directly or indirectly— (1) Either one controls or can control the other; or (2) A third party controls or can control both.

FAR 2.101  Definitions. “Assignment of claims” means the transfer or making over by the contractor to a bank, trust company, or other financing institution, as security for a loan to the contractor, of its right to be paid by the Government for contract performance.

FAR 2.101  Definitions. “Best value” means the expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement.

FAR 2.101  Definitions. “Broad agency announcement” means a general announcement of an agency’s research interest including criteria for selecting proposals and soliciting the participation of all offerors capable of satisfying the Government’s needs (see 6.102(d)(2)).

FAR 2.101  Definitions. “Central Contractor Registration (CCR) database” means the primary Government repository for contractor information required for the conduct of business with the Government.

FAR 2.101  Definitions. “Certified cost or pricing data” means “cost or pricing data” that were required to be submitted in accordance with FAR 15.403-4 and 15.403-5 and have been certified, or is required to be certified, in accordance with 15.406-2. This certification states that, to the best of the person’s knowledge and belief, the cost or pricing data are accurate, complete, and current as of a date certain before contract award. Cost or pricing data are required to be certified in certain procurements (10 U.S.C. 2306a and 41 U.S.C. 254b).

FAR 2.101  Definitions. “Day” means, unless otherwise specified, a calendar day.

FAR 2.101  Definitions. “Delivery order” means an order for supplies placed against an established contract or with Government sources. “Task order” means an order for services placed against an established contract or with Government sources.

FAR 2.101  Definitions. “Excluded Parties List System” means an electronic database maintained and posted by the General Services Administration containing the list of all parties suspended, proposed for debarment, debarred, declared ineligible, or excluded or disqualified under the nonprocurement common rule by agencies, Government corporations, or by the Government Accountability Office.

FAR 2.101  Definitions. “Full and open competition,” when used with respect to a contract action, means that all responsible sources are permitted to compete. “Unrestricted”

FAR 2.101  Definitions. “Invoice” means a contractor’s bill or written request for payment under the contract for supplies delivered or services performed (see also “proper invoice”). “Proper invoice” means an invoice that meets the minimum standards specified in 32.905(b).

FAR 2.101  Definitions “May” denotes the permissive. However, the words “no person may…” mean that no person is required, authorized, or permitted to do the act described. “Shall” means the imperative.

FAR 2.101  Definitions “Performance Work Statement (PWS)” means a statement of work for performance-based acquisitions that describes the required results in clear, specific and objective terms with measurable outcomes. “Statement of Objectives (SOO)” means a Government-prepared document incorporated into the solicitation that states the overall performance objectives. It is used in solicitations when the Government intends to provide the maximum flexibility to each offeror to propose an innovative approach.

FAR 2.101  Definitions “Simplified acquisition threshold” means $150,000, except for acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack, the term means— (1) $300,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and (2) $1 million for any contract to be awarded and performed, or purchase to be made, outside the United States.

Subpart 2.2—Definitions Clause 2.201  Contract clause. Insert the clause at 52.202-1, Definitions, in solicitations and contracts that exceed the simplified acquisition threshold.

Subpart 2.2—Definitions Clause 2.201  Contract clause. Insert the clause 52.202-1  Definitions. As prescribed in 2.201, insert the following clause: Definitions (Jan 2012) (a) When a solicitation provision or contract clause uses a word or term that is defined in the Federal Acquisition Regulation (FAR), the word or term has the same meaning as the definition in FAR 2.101 in effect at the time the solicitation was issued, unless— (1) The solicitation, or amended solicitation, provides a different definition; (2) The contracting parties agree to a different definition; (3) The part, subpart, or section of the FAR where the provision or clause is prescribed provides a different meaning; or (4) The word or term is defined in FAR Part 31, for use in the cost principles and procedures. (b) The FAR Index is a guide to words and terms the FAR defines and shows where each definition is located. The FAR Index is available via the Internet at http://www.acquisition.gov/far at the end of the FAR, after the FAR Appendix. (End of clause) .