FAR 1.104—Applicability.
Plain-English Summary
FAR 1.104 states the basic reach of the Federal Acquisition Regulation: it applies to all "acquisitions" as that term is defined in FAR part 2, unless a specific exclusion says otherwise. In practice, this section answers the threshold question of whether the FAR governs a particular buying action before anyone starts applying its procedures, clauses, competition rules, or documentation requirements. It ties the FAR’s coverage to the part 2 definition of acquisition, which is broad and includes the government’s obtaining of supplies or services by contract, with or without appropriated funds, and by various methods such as purchase, lease, or barter, but only to the extent the action fits that definition. It also makes clear that the FAR is not universal in every government transaction; if another law, regulation, or an express FAR exclusion removes the action from coverage, the FAR does not apply. For contracting officers, program offices, and contractors, this section is important because it determines whether FAR-based procedures, solicitation provisions, contract clauses, and oversight requirements are in play at all. It is the starting point for compliance analysis and for deciding whether a transaction should be handled under the FAR, another procurement framework, or a non-FAR authority.
Key Rules
FAR covers all acquisitions
The FAR applies to every acquisition as defined in FAR part 2. If an action meets that definition, the FAR is the default governing framework unless an exclusion applies.
Part 2 definition controls
Whether something is an acquisition is determined by FAR part 2, not by labels used by the agency or the parties. The part 2 definition is the gateway to FAR applicability.
Express exclusions override
The FAR does not apply where it is expressly excluded. A specific exclusion must be identified; otherwise, the presumption is that the FAR applies to the acquisition.
Applicability is threshold issue
This section is not about how to conduct an acquisition, but about whether the FAR governs it at all. That makes it a preliminary legal and procedural check before selecting clauses, methods, and approvals.
Responsibilities
Contracting Officer
Determine whether the contemplated action is an acquisition under FAR part 2 and whether any express exclusion removes it from FAR coverage. Apply FAR requirements only when the action falls within the FAR’s scope, and document the basis for the applicability decision when needed.
Agency
Ensure internal acquisition policies and procedures align with FAR applicability rules and identify any statutory or regulatory exclusions that affect agency transactions. Train personnel to distinguish FAR-covered acquisitions from non-FAR actions.
Program Office / Requiring Activity
Work with contracting personnel to characterize the transaction correctly and avoid treating a non-acquisition as a FAR procurement, or vice versa. Provide accurate facts about the government’s need, funding, and intended method of obtaining the item or service.
Contractor / Offeror
Understand that FAR requirements generally apply only when the government action is an acquisition under FAR part 2 and not when an express exclusion applies. Use the applicability determination to assess which solicitation rules, clauses, and compliance obligations may govern the opportunity or contract.
Practical Implications
The first question in any procurement analysis is whether the action is an FAR acquisition; getting that wrong can lead to using the wrong procedures, clauses, or competition rules.
Because the definition comes from FAR part 2, users must read this section together with part 2 rather than relying on common usage of the word "purchase."
Express exclusions matter: some government transactions may look like procurements but are handled outside the FAR because a specific exclusion applies.
A mistaken assumption that the FAR always applies can create unnecessary compliance work, while a mistaken assumption that it does not apply can create serious legal and contractual risk.
Contracting officers should be prepared to explain the applicability basis, especially when using alternative authorities or when the transaction is unusual or borderline.
Official Regulatory Text
The FAR applies to all acquisitions as defined in part 2 of the FAR, except where expressly excluded.