Applicability
FAR 22.603 defines when the requirements for materials, supplies, articles, and equipment contracts apply, focusing on location, contract value, and exemptions.
Overview
FAR 22.603 outlines when the requirements of FAR 22.602 apply to government contracts and subcontracts. Specifically, it clarifies that these requirements cover contracts (including indefinite-delivery contracts, basic ordering agreements, and blanket purchase agreements) and subcontracts under Section 8(a) of the Small Business Act for the manufacture or furnishing of supplies. The regulation applies if the work is performed in the United States, Puerto Rico, or the U.S. Virgin Islands, the contract value exceeds or may exceed $20,000, and the contract is not otherwise exempt under FAR 22.604.
Key Rules
- Geographic Scope
- Applies to contracts performed in the U.S., Puerto Rico, or the U.S. Virgin Islands.
- Contract Value Threshold
- Applies to contracts exceeding or potentially exceeding $20,000.
- Contract Types Covered
- Includes indefinite-delivery contracts, basic ordering agreements, blanket purchase agreements, and 8(a) subcontracts.
- Exemptions
- Contracts exempt under FAR 22.604 are not subject to these requirements.
Responsibilities
- Contracting Officers: Must determine if contracts meet the applicability criteria and ensure compliance with FAR 22.602.
- Contractors: Must comply with FAR 22.602 if their contract meets the outlined criteria.
- Agencies: Oversee compliance and ensure proper application of the rules.
Practical Implications
- This section helps contracting professionals quickly determine if FAR 22.602 requirements apply to their contracts.
- It is crucial for compliance, especially for contracts involving supply manufacturing or furnishing.
- Common pitfalls include overlooking the value threshold, geographic limitations, or exemptions under FAR 22.604.
