FAR 1.108—FAR conventions.
Plain-English Summary
FAR 1.108 provides the basic interpretive conventions used to read and apply the FAR. It covers six core topics: how to interpret words and terms, when authority is delegable, how to calculate dollar thresholds for applicability, how FAR changes apply to solicitations and contracts, how citations to outside authorities should be read, and who is responsible when the FAR uses imperative language. In practice, this section tells contracting personnel how to resolve ambiguity, determine whether a rule applies, and decide whether a regulatory change affects an existing procurement action. It is especially important for drafting solicitations, evaluating thresholds, managing amendments, and deciding whether a contract modification or incorporation of a new FAR requirement is appropriate. The section is designed to promote consistent interpretation across the acquisition system and to avoid disputes caused by narrow or outdated readings of the FAR.
Key Rules
Defined terms control meaning
Terms defined in FAR part 2 apply throughout the FAR unless a different definition is provided in a specific part, subpart, section, provision, or clause. If a term is not defined in the FAR, it keeps its ordinary dictionary meaning.
Authority is generally delegable
Unless the FAR specifically says otherwise, an authority granted by the FAR may be delegated. Users should check for any express nondelegable limitation before assuming a delegation is allowed.
Use final anticipated value
For applicability thresholds, use the final anticipated dollar value of the action, including all options, unless the FAR says otherwise. If the action involves a maximum quantity, ceiling price, or a final price based on future events, use the highest final priced alternative to the Government.
FAR changes apply prospectively
Unless otherwise stated, FAR changes apply to solicitations issued on or after the effective date. Contracting officers may also choose to include the change in earlier-issued solicitations if award will occur on or after the effective date.
Existing contracts may be updated with consideration
Contracting officers may, at their discretion, incorporate FAR changes into existing contracts, but only with appropriate consideration. This means the change is not automatic and must be handled as a contractual modification.
Citations include amendments
When the FAR cites a statute, Executive order, OMB circular, OFPP policy letter, or relevant CFR provision, the citation includes later amendments unless the FAR says otherwise. Readers must therefore consult the current version of the referenced authority.
Imperatives default to the contracting officer
When the FAR uses an imperative sentence to direct action, the contracting officer is responsible for carrying out that action unless the text expressly assigns it to another party.
Responsibilities
Contracting Officer
Interpret FAR terms using the controlling definition hierarchy; determine whether authority may be delegated; calculate applicability thresholds using final anticipated dollar value and all options; decide whether to apply FAR changes to pre-existing solicitations or existing contracts; ensure any incorporation of changes into an existing contract is supported by appropriate consideration; and carry out actions directed by imperative FAR language unless another party is named.
Contractor
Read FAR requirements using the applicable definitions and current cited authorities; recognize that threshold-based requirements may be driven by the total anticipated value including options; and understand that changes to existing contracts generally require a bilateral or otherwise supported contractual modification rather than automatic application.
Agency/Acquisition Team
Apply FAR conventions consistently across procurements; ensure delegations of authority are valid; update solicitation and contract language when appropriate; and verify that cited external authorities are read as amended unless a different rule is stated.
Practical Implications
Threshold determinations can change based on options and pricing structure, so acquisition personnel should not look only at base-year value when deciding whether a FAR requirement applies.
A FAR change does not automatically rewrite old solicitations or contracts; contracting officers must decide whether to incorporate it and, for existing contracts, obtain appropriate consideration.
When a solicitation or contract uses a term that is defined in a specific part or clause, that local definition controls over a general meaning, which can affect compliance, evaluation, and disputes.
Imperative wording in the FAR often places the action item on the contracting officer, so teams should not assume another office is responsible unless the text clearly says so.
Because cited statutes and regulations are read as amended, users should verify the current text of referenced authorities rather than relying on the version in effect when the FAR text was published.
Official Regulatory Text
The following conventions provide guidance for interpreting the FAR: (a) Words and terms . Definitions in part 2 apply to the entire regulation unless specifically defined in another part, subpart, section, provision, or clause. Words or terms defined in a specific part, subpart, section, provision, or clause have that meaning when used in that part, subpart, section, provision, or clause. Undefined words retain their common dictionary meaning. (b) Delegation of authority . Each authority is delegable unless specifically stated otherwise (see 1.102-5 (b)). (c) Dollar thresholds . Unless otherwise specified, a specific dollar threshold for the purpose of applicability is the final anticipated dollar value of the action, including the dollar value of all options. If the action establishes a maximum quantity of supplies or services to be acquired or establishes a ceiling price or establishes the final price to be based on future events, the final anticipated dollar value must be the highest final priced alternative to the Government, including the dollar value of all options. (d) Application of FAR changes to solicitations and contracts . Unless otherwise specified- (1) FAR changes apply to solicitations issued on or after the effective date of the change; (2) Contracting officers may, at their discretion, include the FAR changes in solicitations issued before the effective date, provided award of the resulting contract(s) occurs on or after the effective date; and (3) Contracting officers may, at their discretion, include the changes in any existing contract with appropriate consideration. (e) Citations . When the FAR cites a statute, Executive order, Office of Management and Budget circular, Office of Federal Procurement Policy policy letter, or relevant portion of the Code of Federal Regulations , the citation includes all applicable amendments, unless otherwise stated. (f) Imperative sentences . When an imperative sentence directs action, the contracting officer is responsible for the action, unless another party is expressly cited.