1.702 General
Source: FAR 1.702 on acquisition.gov
D&Fs must clearly describe and justify contract actions, allowing limited flexibility, and must specify option quantities when options are anticipated.
Overview
FAR 1.702 outlines the general requirements for Determinations and Findings (D&F) in federal contracting. D&Fs are formal documents that justify and authorize specific contract actions. This section clarifies that D&Fs are typically prepared for individual contract actions, but class D&Fs may be used for groups of similar actions if not otherwise prohibited. The approval granted by a D&F is limited to the actions described within it, though some flexibility is allowed regarding estimated quantities or prices unless the D&F states otherwise. When contract options are anticipated, the D&F must specify the initial quantity and the potential increase allowed by the option.
Key Rules
- Individual vs. Class D&Fs
- D&Fs are usually for single contract actions, but class D&Fs can cover multiple similar actions if permitted.
- Scope and Flexibility
- The D&F approval is limited to the described actions, but allows reasonable flexibility in quantities or prices unless otherwise specified.
- Options in Contracts
- If options are expected, the D&F must state the initial quantity and the extent of any increase permitted by the option.
Responsibilities
- Contracting Officers: Must ensure D&Fs are properly prepared, describe the contract action(s) accurately, and include required details for options.
- Contractors: Should understand the scope and limitations of D&Fs affecting their contracts.
- Agencies: Oversee compliance with D&F requirements and ensure approvals are properly documented.
Practical Implications
- This section ensures that contract actions are justified and authorized through a formal process, providing transparency and accountability. It impacts daily contracting by requiring clear documentation and limiting approvals to described actions, with flexibility for reasonable changes. Common pitfalls include failing to specify option quantities or exceeding the described scope without proper D&F coverage.
(a) A D&F shall ordinarily be for an individual contract action. Unless otherwise prohibited, class D&F’s may be executed for classes of contract actions (see 1.703). The approval granted by a D&F is restricted to the proposed contract action(s) reasonably described in that D&F. D&F’s may provide for a reasonable degree of flexibility. Furthermore, in their application, reasonable variations in estimated quantities or prices are permitted, unless the D&F specifies otherwise.
(b) When an option is anticipated, the D&F shall state the approximate quantity to be awarded initially and the extent of the increase to be permitted by the option.