Why Part 37 Matters

Services represent over half of federal procurement spending. Performance-based acquisition under Subpart 37.6 is the preferred approach, requiring agencies to define work in terms of measurable outcomes rather than prescriptive processes. Advisory and assistance services face additional scrutiny including special reporting requirements. The prohibition on personal services contracts (Subpart 37.104) is frequently at issue in service contract oversight. Contractors must develop compliant QASPs and performance work statements.

Key Topics in Part 37

FAR Part 37 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.

• Performance-based acquisition (Subpart 37.6)
• Performance work statements and QASPs
• Advisory and assistance services (Subpart 37.2)
• Personal services contract prohibition (Subpart 37.1)
• Service Contract Labor Standards integration
• Inherently governmental function considerations
• Contractor employee workplace requirements
• Service contract consolidation and bundling

How FAR Part 37 Applies

The Federal Acquisition Regulation is organized into 53 parts, each covering a distinct area of the procurement process. Part 37 (Service Contracting) 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 37 may be implemented through specific contract clauses prescribed in FAR Part 52. When a clause references Part 37, the substantive requirements originate here, while Part 52 provides the actual clause language incorporated into contracts and solicitations.

Subparts

FAR Part 37 is divided into 6 subparts, each addressing a specific aspect of service contracting.

• 37.1 — Service Contracts—General
• 37.2 — Advisory and Assistance Services
• 37.3 — Dismantling, Demolition, or Removal of Improvements
• 37.4 — Nonpersonal Health Care Services
• 37.5 — Management Oversight of Service Contracts
• 37.6 — Performance-Based Acquisition

Reading FAR Part 37

The full text of FAR Part 37 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 37 cover?

  FAR Part 37 covers service contracting within the federal acquisition process. FAR Part 37 addresses service contracting, including the preference for performance-based acquisition (PBA) methods under Subpart 37.6. It covers advisory and assistance services (Subpart 37.2), which require special approval and documentation. The part emphasizes defining requirements in terms of measurable outcomes, performance standards, and quality assurance surveillance plans (QASPs). It also addresses personal services contracts (Subpart 37.1), which are generally prohibited for most agencies.

• Who must comply with FAR Part 37?

  FAR Part 37 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 37?

  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 37 relate to contract clauses?

  FAR Part 37 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.