Major System Acquisition
FAR Part 34 provides the framework and requirements for acquiring major systems, emphasizing planning, competition, and performance management to ensure mission success and regulatory compliance.
Overview
FAR Part 34 establishes the policies, procedures, and requirements for the acquisition of major systems by federal agencies. It provides a structured framework for planning, developing, testing, and producing complex systems, ensuring that acquisitions are managed efficiently and effectively. The part covers the definition of major systems, acquisition strategies, competition requirements, and the use of mission-oriented solicitations. It also addresses the responsibilities of contracting officers and agencies in overseeing major system acquisitions. Subpart 34.1 focuses on the testing and qualification of industrial resources developed under the Defense Production Act, while Subpart 34.2 outlines requirements for implementing an Earned Value Management System (EVMS) to monitor cost, schedule, and technical performance. The overall goal is to ensure that major system acquisitions deliver value, meet mission needs, and comply with statutory and regulatory mandates.
Key Rules
- Definition and Scope
- Defines what constitutes a major system and outlines the applicability of the part.
- Acquisition Strategy and Policy
- Requires agencies to develop comprehensive acquisition strategies and adhere to policies promoting competition and mission-oriented solutions.
- General Requirements and Competition
- Establishes requirements for competition, concept exploration, demonstration, and full-scale development contracts.
- Testing and Qualification (Subpart 34.1)
- Provides procedures for testing and qualifying industrial resources under the Defense Production Act.
- Earned Value Management System (Subpart 34.2)
- Mandates the use of EVMS for certain major system acquisitions to ensure effective project management and oversight.
Responsibilities
- Contracting Officers: Ensure compliance with acquisition strategies, competition requirements, and EVMS implementation.
- Contractors: Adhere to solicitation requirements, participate in testing/qualification, and implement EVMS when required.
- Agencies: Oversee acquisition planning, monitor contractor performance, and ensure statutory/regulatory compliance.
Practical Implications
- FAR Part 34 exists to manage the risks and complexities of major system acquisitions, ensuring accountability and performance.
- It impacts daily contracting by requiring structured planning, robust competition, and rigorous performance monitoring.
- Common pitfalls include inadequate acquisition planning, failure to implement EVMS, and insufficient competition or oversight.