1.102-2 Performance standards
Source: FAR 1.102-2 on acquisition.gov
FAR 1.102-2 requires acquisition professionals to prioritize customer satisfaction, efficiency, integrity, and public policy while promoting competition and responsible risk management.
Overview
FAR 1.102-2 establishes the performance standards for the Federal Acquisition System, focusing on satisfying customer needs, minimizing administrative costs, conducting business with integrity, and fulfilling public policy objectives. It emphasizes responsiveness to users, the importance of past performance in contractor selection, early and open communication with industry, maximizing commercial solutions, promoting competition, and the need for effective planning. The section also stresses minimizing unnecessary rules, encouraging innovation, maintaining public trust, managing risk rather than avoiding it, and supporting Congressional and Presidential policy goals.
Key Rules
- Customer Satisfaction
- Acquisition processes must prioritize cost, quality, and timeliness for end users and taxpayers.
- Responsiveness and Adaptability
- The system must adapt to customer feedback and needs throughout the acquisition process.
- Contractor Selection
- Preference is given to contractors with proven past performance or demonstrated superior ability.
- Industry Communication
- Early, responsible, and fair communication with industry is encouraged to assess market capabilities.
- Commercial Solutions and Competition
- Use commercial products/services and promote competition wherever possible.
- Efficiency and Innovation
- Minimize administrative costs, promulgate rules only when benefits outweigh costs, and encourage innovation.
- Integrity and Risk Management
- Conduct business with integrity, fairness, and openness, focusing on risk management rather than risk avoidance.
- Public Policy Fulfillment
- Support and efficiently implement public policy objectives.
Responsibilities
- Contracting Officers: Ensure acquisitions meet customer needs, promote competition, communicate with industry, and uphold integrity and public policy.
- Contractors: Demonstrate past performance, engage in fair competition, and comply with public policy and ethical standards.
- Agencies: Oversee efficient, fair, and policy-compliant acquisition processes, and foster a professional, accountable workforce.
Practical Implications
- This section guides acquisition professionals to balance efficiency, customer satisfaction, and public trust while supporting policy goals. It impacts daily contracting by requiring proactive planning, open communication, and a focus on results, not just compliance. Common pitfalls include excessive bureaucracy, risk aversion, and lack of engagement with industry.
(a) Satisfy the customer in terms of cost, quality, and timeliness of the delivered product or service.
(1) The principal customers for the product or service provided by the System are the users and line managers, acting on behalf of the American taxpayer.
(2) The System must be responsive and adaptive to customer needs, concerns, and feedback. Implementation of acquisition policies and procedures, as well as consideration of timeliness, quality, and cost throughout the process, must take into account the perspective of the user of the product or service.
(3) When selecting contractors to provide products or perform services, the Government will use contractors who have a track record of successful past performance or who demonstrate a current superior ability to perform.
(4) The Government must not hesitate to communicate with industry as early as possible in the acquisition cycle to help the Government determine the capabilities available in the marketplace. Government acquisition personnel are permitted and encouraged to engage in responsible and constructive exchanges with industry ( e.g., see 10.002 and 15.201), so long as those exchanges are consistent with existing laws and regulations, and do not promote an unfair competitive advantage to particular firms.
(5) The Government will maximize its use of commercial products and commercial services in meeting Government requirements.
(6) It is the policy of the System to promote competition in the acquisition process.
(7) The System must perform in a timely, high quality, and cost-effective manner.
(8) All members of the Team are required to employ planning as an integral part of the overall process of acquiring products or services. Although advance planning is required, each member of the Team must be flexible in order to accommodate changing or unforeseen mission needs. Planning is a tool for the accomplishment of tasks, and application of its discipline should be commensurate with the size and nature of a given task.
(b) Minimize administrative operating costs.
(1) In order to ensure that maximum efficiency is obtained, rules, regulations, and policies should be promulgated only when their benefits clearly exceed the costs of their development, implementation, administration, and enforcement. This applies to internal administrative processes, including reviews, and to rules and procedures applied to the contractor community.
(2) The System must provide uniformity where it contributes to efficiency or where fairness or predictability is essential. The System should also, however, encourage innovation, and local adaptation where uniformity is not essential.
(c) Conduct business with integrity, fairness, and openness.
(1) An essential consideration in every aspect of the System is maintaining the public’s trust. Not only must the System have integrity, but the actions of each member of the Team must reflect integrity, fairness, and openness. The foundation of integrity within the System is a competent, experienced, and well-trained, professional workforce. Accordingly, each member of the Team is responsible and accountable for the wise use of public resources as well as acting in a manner which maintains the public’s trust. Fairness and openness require open communication among team members, internal and external customers, and the public.
(2) To achieve efficient operations, the System must shift its focus from "risk avoidance" to one of "risk management." The cost to the taxpayer of attempting to eliminate all risk is prohibitive. The Executive Branch will accept and manage the risk associated with empowering local procurement officials to take independent action based on their professional judgment.
(3) The Government shall exercise discretion, use sound business judgment, and comply with applicable laws and regulations in dealing with contractors and prospective contractors. All contractors and prospective contractors shall be treated fairly and impartially but need not be treated the same.
(d) Fulfill public policy objectives. The System must support the attainment of public policy goals adopted by the Congress and the President. In attaining these goals, and in its overall operations, the process shall ensure the efficient use of public resources.