Policy
FAR 1.402 allows agencies to request deviations from the FAR to meet specific needs, except where prohibited, while strictly forbidding deviations related to certain cost accounting standards.
Overview
FAR 1.402 establishes the policy for granting deviations from the Federal Acquisition Regulation (FAR). Agencies may request deviations when necessary to meet specific needs, provided such deviations are not prohibited by law, executive order, or other regulations. The regulation encourages innovation and the development of new acquisition techniques, clarifying that the need for a deviation should not discourage agencies from pursuing improvements. However, deviations are strictly prohibited for certain areas, specifically those related to Cost Accounting Standards (CAS) at 30.201-3 and 30.201-4, and the requirements of the Cost Accounting Standards Board (CASB). For deviations related to contract cost principles (Part 31), and waivers for CAS, agencies must follow the instructions in the referenced sections (31.101 and 30.201-5, respectively).
Key Rules
- Deviations Permitted When Necessary
- Agencies may request deviations from the FAR to meet specific needs unless prohibited by law, executive order, or regulation.
- Encouragement of Innovation
- The need for a deviation should not prevent agencies from developing or testing new acquisition methods.
- Prohibited Deviations
- Deviations are not allowed for certain CAS-related requirements (30.201-3, 30.201-4, and CASB rules).
- Special Instructions for Cost Principles and CAS Waivers
- Agencies must follow specific instructions for deviations related to contract cost principles (31.101) and CAS waivers (30.201-5).
Responsibilities
- Contracting Officers: Must ensure deviations are properly justified, not prohibited, and processed according to this subpart and referenced sections.
- Contractors: Should be aware that agencies may seek deviations but that certain cost accounting requirements cannot be deviated from.
- Agencies: Must encourage innovation but comply with restrictions and follow proper procedures for requesting deviations.
Practical Implications
- This policy enables flexibility in acquisition while maintaining compliance with critical cost accounting standards.
- Agencies can innovate without being hindered by the need for deviations, but must be vigilant about areas where deviations are strictly prohibited.
- Common pitfalls include misunderstanding which areas are off-limits for deviations and failing to follow the correct procedures for requesting them.