1.102-2
Performance standards
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.