Why Part 34 Matters

Major system acquisitions represent the highest dollar and highest risk procurement actions. EVMS requirements under Subpart 34.2 mandate that contractors maintain systems compliant with ANSI/EIA-748 for tracking cost and schedule performance. Earned value data drives program management decisions and can trigger Nunn-McCurdy breach reporting. Contractors bidding on major systems must have validated EVMS capabilities and understand milestone-based decision frameworks.

Key Topics in Part 34

FAR Part 34 addresses several critical areas of the federal acquisition process. Understanding these topics is essential for both contracting officers and contractors working within this regulatory framework.

• OMB Circular A-109 major system acquisition policy
• Phased development and milestone decisions
• Earned Value Management System (EVMS) requirements (Subpart 34.2)
• ANSI/EIA-748 EVMS compliance
• Mission needs statements and analysis of alternatives
• Full funding and economic analysis requirements

How FAR Part 34 Applies

The Federal Acquisition Regulation is organized into 53 parts, each covering a distinct area of the procurement process. Part 34 (Major System Acquisition) is part of this framework and works in conjunction with other FAR parts to create a comprehensive regulatory structure. Contracting officers must comply with all applicable parts when executing procurement actions, and contractors must understand the requirements that flow from these regulations into their contracts.

The requirements in Part 34 may be implemented through specific contract clauses prescribed in FAR Part 52. When a clause references Part 34, the substantive requirements originate here, while Part 52 provides the actual clause language incorporated into contracts and solicitations.

Subparts

FAR Part 34 is divided into 2 subparts, each addressing a specific aspect of major system acquisition.

• 34.1 — Testing, Qualification and Use of Industrial Resources Developed Under Title III, Defense Production Act
• 34.2 — Earned Value Management System

Reading FAR Part 34

The full text of FAR Part 34 is available on the Electronic Code of Federal Regulations (eCFR). The eCFR provides the most current version of the regulation, including any recent amendments published through Federal Acquisition Circulars (FACs). For historical versions, use the eCFR's point-in-time search feature.

• What does FAR Part 34 cover?

  FAR Part 34 covers major system acquisition within the federal acquisition process. FAR Part 34 covers major system acquisition, establishing policies for acquiring major systems as defined by OMB Circular A-109. It requires agencies to promote innovation and competition through the system acquisition process, using phased development approaches with milestone decision points. Subpart 34.2 addresses earned value management system (EVMS) requirements for major acquisitions.

• Who must comply with FAR Part 34?

  FAR Part 34 applies to all executive branch agencies conducting acquisitions, unless a specific exemption exists. Contractors must comply with the requirements that are incorporated into their contracts through prescribed clauses from FAR Part 52. Agency-specific supplements (DFARS, GSAM, etc.) may add additional requirements beyond the base FAR.

• Where can I read the full text of FAR Part 34?

  The full text is available on the Electronic Code of Federal Regulations (eCFR). You can also access it through acquisition.gov, which is maintained by the General Services Administration. Both sources reflect the most current version of the regulation.

• How does FAR Part 34 relate to contract clauses?

  FAR Part 34 establishes the substantive policies and procedures. The actual clause language that gets incorporated into contracts is found in FAR Part 52. Each clause in Part 52 includes a "prescription" that references the relevant policy part, creating a direct link between the requirement and its implementation in the contract.