Policy
Federal agencies must use electronic commerce in contracting whenever practical, ensuring systems are secure, accessible, and compliant with recognized standards.
Overview
FAR 4.502 establishes the federal policy for using electronic commerce (EC) in government contracting. The regulation mandates the use of EC whenever it is practical or cost-effective, clarifies that traditional paper-based terminology does not limit EC use, and allows contracting officers to supplement EC with other media as needed. Agencies have broad discretion in selecting EC hardware and software but must ensure uniform implementation, consider existing infrastructures, facilitate small business access, provide public notice through a governmentwide point of entry, and comply with recognized interoperability standards. Before adopting EC, agencies must ensure systems provide adequate authentication and confidentiality. The regulation also permits the use of electronic signatures and records in government contracts.
Key Rules
- Mandate for Electronic Commerce
- Agencies must use EC when practical or cost-effective, and paper-based terms do not restrict EC use.
- Agency Discretion and Uniformity
- Agencies can choose their EC systems but must implement them uniformly, consider existing infrastructure, and ensure broad access, especially for small businesses.
- Public Notice and Standards
- Agencies must use a single governmentwide point of entry for acquisition opportunities and comply with national/international standards for interoperability.
- Security Requirements
- EC systems must ensure authentication and confidentiality appropriate to the risk.
- Electronic Signatures and Records
- Agencies may accept electronic signatures and records for contracts.
Responsibilities
- Contracting Officers: Use EC when feasible, supplement with other media as needed, and ensure compliance with agency EC policies.
- Contractors: Submit electronic records and signatures as permitted, and ensure compatibility with agency EC systems.
- Agencies: Select and implement EC systems uniformly, ensure security, facilitate small business access, and comply with standards and public notice requirements.
Practical Implications
- This policy drives the modernization and efficiency of federal procurement by promoting EC.
- Contractors must be prepared to interact electronically and ensure their systems are compatible with agency requirements.
- Common pitfalls include failing to meet security standards or not providing adequate public notice of opportunities.