Why Part 38 Matters

Federal Supply Schedule contracts are among the most widely used procurement vehicles in government, offering pre-competed pricing and streamlined ordering. Contractors seeking schedule contracts must understand the MAS (Multiple Award Schedule) consolidation, price negotiations with GSA, economic price adjustment clauses, and the Trade Agreements Act compliance requirement for all FSS products. Schedule holders must maintain current pricing and comply with the Price Reductions Clause.

Key Topics in Part 38

FAR Part 38 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.

• Federal Supply Schedule program structure
• Multiple Award Schedule (MAS) consolidation
• Schedule contract negotiation and pricing
• Economic price adjustments
• Trade Agreements Act compliance for FSS
• Price Reductions Clause obligations

How FAR Part 38 Applies

The Federal Acquisition Regulation is organized into 53 parts, each covering a distinct area of the procurement process. Part 38 (Federal Supply Schedule 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 38 may be implemented through specific contract clauses prescribed in FAR Part 52. When a clause references Part 38, the substantive requirements originate here, while Part 52 provides the actual clause language incorporated into contracts and solicitations.

Subparts

FAR Part 38 is divided into 2 subparts, each addressing a specific aspect of federal supply schedule contracting.

• 38.1 — Federal Supply Schedule Program
• 38.2 — Establishing and Administering Federal Supply Schedules

Reading FAR Part 38

The full text of FAR Part 38 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 38 cover?

  FAR Part 38 covers federal supply schedule contracting within the federal acquisition process. FAR Part 38 covers Federal Supply Schedule (FSS) contracting, establishing the framework under which GSA and VA negotiate contracts with commercial firms to provide supplies and services at stated prices for specified periods. FSS contracts are indefinite-delivery, indefinite-quantity contracts. The part addresses the creation and management of schedule contracts, though ordering procedures are in Part 8 (Subpart 8.4).

• Who must comply with FAR Part 38?

  FAR Part 38 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 38?

  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 38 relate to contract clauses?

  FAR Part 38 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.