Why Part 7 Matters

Acquisition planning directly affects contract structure, competition strategy, and small business participation. Well-developed acquisition plans reduce bid protests and cost overruns. Contractors benefit from early market research and industry engagement during the planning phase. The inherently governmental function analysis in Subpart 7.5 determines whether work can be contracted out at all.

Key Topics in Part 7

FAR Part 7 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.

• Written acquisition plan requirements (Subpart 7.1)
• Consolidation and bundling restrictions
• Inherently governmental functions (Subpart 7.5)
• OMB Circular A-76 and public-private competition
• Market research integration
• Make-or-buy considerations
• Interagency acquisitions (Subpart 7.4)

How FAR Part 7 Applies

The Federal Acquisition Regulation is organized into 53 parts, each covering a distinct area of the procurement process. Part 7 (Acquisition Planning) 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 7 may be implemented through specific contract clauses prescribed in FAR Part 52. When a clause references Part 7, the substantive requirements originate here, while Part 52 provides the actual clause language incorporated into contracts and solicitations.

Subparts

FAR Part 7 is divided into 5 subparts, each addressing a specific aspect of acquisition planning.

• 7.1 — Acquisition Plans
• 7.2 — Planning for the Purchase of Supplies in Economic Quantities
• 7.3 — Contractor Versus Government Performance
• 7.4 — Equipment Acquisition
• 7.5 — Inherently Governmental Functions

Reading FAR Part 7

The full text of FAR Part 7 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 7 cover?

  FAR Part 7 covers acquisition planning within the federal acquisition process. FAR Part 7 addresses acquisition planning, requiring agencies to perform planning that promotes full and open competition and ensures the government meets its needs effectively. Subpart 7.1 covers written acquisition plans for acquisitions exceeding the simplified acquisition threshold. Subpart 7.3 addresses contractor versus government performance (inherently governmental functions) and the requirements for public-private competition under OMB Circular A-76.

• Who must comply with FAR Part 7?

  FAR Part 7 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 7?

  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 7 relate to contract clauses?

  FAR Part 7 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.