9.104-1 General standards
Source: FAR 9.104-1 on acquisition.gov
Contractors must meet specific financial, technical, ethical, and legal standards to be deemed responsible and eligible for federal contract awards.
Overview
FAR 9.104-1 outlines the general standards that a prospective contractor must meet to be considered responsible and eligible for government contract awards. These standards ensure that only qualified, ethical, and capable contractors are entrusted with federal contracts. The regulation covers financial resources, performance capability, integrity, technical skills, equipment, and legal eligibility, forming the foundation for responsibility determinations in federal procurement.
Key Rules
- Financial Resources
- Contractors must have, or be able to obtain, adequate financial resources to perform the contract.
- Performance Capability
- Contractors must be able to meet delivery or performance schedules, considering all current commitments.
- Performance Record
- Contractors must have a satisfactory performance record; lack of history alone cannot disqualify them (with some exceptions).
- Integrity and Ethics
- Contractors must demonstrate a satisfactory record of integrity and business ethics.
- Organizational and Technical Capability
- Contractors must have, or be able to obtain, necessary organization, experience, controls, and technical skills.
- Equipment and Facilities
- Contractors must have, or be able to obtain, the required equipment and facilities.
- Legal Eligibility
- Contractors must be otherwise qualified and eligible under all applicable laws and regulations.
Responsibilities
- Contracting Officers: Must verify and document that prospective contractors meet all responsibility standards before award.
- Contractors: Must provide evidence of compliance with each standard and address any deficiencies.
- Agencies: Oversee responsibility determinations and ensure compliance with legal and ethical standards.
Practical Implications
- This section exists to protect the government from awarding contracts to unqualified or unethical firms.
- It impacts daily contracting by requiring thorough due diligence and documentation.
- Common pitfalls include inadequate documentation, overlooking performance history, or failing to verify eligibility under all laws.
To be determined responsible, a prospective contractor must-
(a) Have adequate financial resources to perform the contract, or the ability to obtain them (see 9.104-3(a));
(b) Be able to comply with the required or proposed delivery or performance schedule, taking into consideration all existing commercial and governmental business commitments;
(c) Have a satisfactory performance record (see 9.104-3 (b) and subpart 42.15). A prospective contractor shall not be determined responsible or nonresponsible solely on the basis of a lack of relevant performance history, except as provided in 9.104-2;
(d) Have a satisfactory record of integrity and business ethics (for example, see subpart 42.15);
(e) Have the necessary organization, experience, accounting and operational controls, and technical skills, or the ability to obtain them (including, as appropriate, such elements as production control procedures, property control systems, quality assurance measures, and safety programs applicable to materials to be produced or services to be performed by the prospective contractor and subcontractors). (See 9.104-3(a).)
(f) Have the necessary production, construction, and technical equipment and facilities, or the ability to obtain them (see 9.104-3(a)); and
(g) Be otherwise qualified and eligible to receive an award under applicable laws and regulations (see also inverted domestic corporation prohibition at 9.108).