General standards
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.