FAR 1.102-1—Discussion.
Plain-English Summary
FAR 1.102-1 explains the purpose of the Federal Acquisition System’s guiding principles and gives a short discussion to clarify the meaning of the principles’ language. It covers two main topics: the introductory explanation that the guiding principles are meant to be user-friendly and supported by the FAR’s policies and procedures, and the vision statement that all participants must make acquisition decisions that deliver the best value product or service to the customer. The section also explains that best value must be understood broadly, not narrowly, and that acquisition decisions require balancing competing interests rather than maximizing only one factor such as lowest price, speed, or administrative convenience. In practical terms, this section is the policy foundation for how agencies and contractors should think about federal buying: the system should work better and cost less, but only by making thoughtful tradeoffs that support mission needs and customer outcomes. It does not create detailed procedural steps, but it frames how the rest of the FAR should be read and applied.
Key Rules
Guiding principles are user-friendly
The statement of guiding principles is intended to be concise and easy for all acquisition participants to use. This means the principles are meant to guide judgment and understanding, not to serve as a dense technical rulebook.
FAR supports the framework
The guiding principles are part of the overall Federal Acquisition System framework, and the FAR’s policies and procedures support them. In practice, the principles and the FAR should be read together as a unified system.
Best value is the goal
All participants are responsible for making acquisition decisions that deliver the best value product or service to the customer. Best value is the central decision standard, not simply the lowest cost or fastest award.
Best value is broad
Best value must be viewed from a broad perspective, meaning decision-makers should consider the full range of relevant factors. This includes mission needs, quality, performance, risk, cost, schedule, and other competing interests.
Balance competing interests
The acquisition system works by balancing competing interests rather than treating any single interest as absolute. The rule requires judgment and tradeoff analysis so the result serves the Government’s overall needs.
System should work better and cost less
The vision of the system is improved performance and lower cost. This is an outcome statement that emphasizes efficiency, effectiveness, and value across the acquisition process.
Responsibilities
All participants in the Federal Acquisition System
Make acquisition decisions that deliver the best value product or service to the customer, using broad judgment and balancing competing interests.
Contracting Officers
Apply the FAR in a way that supports best value outcomes, use sound acquisition judgment, and ensure decisions reflect the broader mission and customer needs.
Program and requiring activities
Define needs and evaluate solutions in a way that supports best value, rather than focusing only on price, speed, or a single technical factor.
Agency acquisition workforce
Use the guiding principles and FAR policies together to support efficient, effective acquisitions that improve performance and reduce unnecessary cost.
Contractors
Understand that federal buying decisions are driven by best value and balanced tradeoffs, and structure proposals and performance approaches to address the Government’s broader needs.
Practical Implications
This section is a policy lens for interpreting the rest of the FAR, so acquisition personnel should use it when making tradeoffs, documenting decisions, and resolving competing priorities.
A common pitfall is treating best value as synonymous with lowest price; the section makes clear that value is broader and may justify paying more for better performance, lower risk, or better mission support.
Another pitfall is overemphasizing one stakeholder’s preference without balancing the full set of interests involved in the acquisition.
For contractors, the practical takeaway is to show how your solution delivers value across multiple dimensions, not just cost.
For contracting officers and program offices, the day-to-day challenge is to make defensible decisions that align customer needs, mission outcomes, and overall system efficiency.
Official Regulatory Text
(a) Introduction. The statement of Guiding Principles for the Federal Acquisition System (System) represents a concise statement designed to be user-friendly for all participants in Government acquisition. The following discussion of the principles is provided in order to illuminate the meaning of the terms and phrases used. The framework for the System includes the Guiding Principles for the System and the supporting policies and procedures in the FAR. (b) Vision . All participants in the System are responsible for making acquisition decisions that deliver the best value product or service to the customer. Best value must be viewed from a broad perspective and is achieved by balancing the many competing interests in the System. The result is a system which works better and costs less.