Service Contracting
FAR Part 37 provides the foundational rules and procedures for acquiring and managing service contracts, emphasizing competition, performance, and compliance with labor standards.
Overview
FAR Part 37 establishes the policies, procedures, and requirements for acquiring services by contract within the federal government. It covers a broad range of service contracting topics, including general service contracts, advisory and assistance services, dismantling and demolition, nonpersonal health care services, management oversight, and performance-based acquisition. The part is organized into subparts that address definitions, competition, funding, labor standards, small business considerations, contract clauses, and special requirements for specific types of services. FAR Part 37 provides the foundational framework for ensuring that service contracts are awarded, managed, and overseen in a manner that meets statutory and regulatory requirements while promoting efficiency, competition, and accountability.
Key Rules
- General Service Contracting Policies
- Outlines the basic principles and policies for acquiring services, including competition, funding, and labor standards.
- Advisory and Assistance Services
- Provides guidance on the use, exclusions, and management of advisory and assistance service contracts.
- Specialized Service Contracts
- Addresses unique requirements for contracts involving dismantling, demolition, nonpersonal health care, and quasi-military services.
- Performance-Based Acquisition
- Emphasizes the use of performance work statements, measurable standards, and quality assurance plans to ensure service outcomes.
Responsibilities
- Contracting Officers: Must ensure compliance with all applicable policies, include required clauses, and oversee contract performance.
- Contractors: Must adhere to contract terms, labor standards, and performance requirements.
- Agencies: Responsible for management oversight, ensuring competition, and proper use of service contracts.
Practical Implications
- FAR Part 37 exists to ensure that service contracts are awarded and managed effectively, with clear standards for performance and accountability.
- It impacts daily contracting by setting expectations for competition, labor compliance, and performance measurement.
- Common pitfalls include misclassifying personal vs. nonpersonal services, failing to use performance-based methods, and overlooking required clauses or labor standards.