Scope of part
FAR 37.000 mandates performance-based acquisition for all service contracts and clarifies when other FAR parts take precedence for specialized services.
Overview
FAR 37.000 establishes the scope of Part 37, which governs the acquisition and management of services by contract. It applies broadly to all contracts and orders for services, regardless of contract type or the nature of the service. The section emphasizes the use of performance-based acquisition methods whenever practicable and refers contracting professionals to Subpart 37.6 for detailed procedures. It also clarifies that for certain specialized services—such as research and development, architect-engineering, information technology, and transportation—other FAR parts (35, 36, 39, and 47) provide additional or overriding guidance. Furthermore, it notes that contracts subject to the Service Contract Labor Standards (41 U.S.C. chapter 67) are included within its scope, with further details in Subpart 22.10.
Key Rules
- Applicability to All Service Contracts
- This part applies to all contracts and orders for services, regardless of contract type or service category.
- Performance-Based Acquisition Requirement
- Agencies must use performance-based acquisition methods for services to the maximum extent practicable.
- Precedence of Other FAR Parts
- For research and development, architect-engineering, IT, and transportation services, Parts 35, 36, 39, and 47 take precedence if there are inconsistencies.
- Coverage of Service Contract Labor Standards
- Contracts subject to Service Contract Labor Standards are included, with further guidance in Subpart 22.10.
Responsibilities
- Contracting Officers: Must ensure service contracts comply with Part 37, use performance-based methods when possible, and consult other relevant FAR parts for specialized services.
- Contractors: Should be aware that service contracts are subject to performance-based requirements and may also be governed by labor standards or other specialized regulations.
- Agencies: Must provide oversight to ensure compliance with performance-based acquisition policies and proper application of specialized FAR parts.
Practical Implications
- This section sets the foundation for all service contracting, requiring a focus on outcomes and performance. Contractors and contracting officers must be vigilant about which FAR parts apply to their specific service type and ensure compliance with labor standards and performance-based acquisition requirements. Overlooking precedence rules or failing to use performance-based methods can lead to compliance issues or contract disputes.