FAR 1.702—General.
Plain-English Summary
FAR 1.702 explains the basic scope and content rules for determinations and findings (D&Fs). It covers when a D&F should be prepared for an individual contract action versus a class of contract actions, how far the approval extends, the fact that a D&F may allow a reasonable degree of flexibility, and how variations in estimated quantities or prices are treated. It also addresses a specific requirement for anticipated options: the D&F must state the approximate quantity to be awarded initially and the extent of the increase allowed by the option. In practice, this section matters because a D&F is not a blanket approval; it must be tied to the action actually being taken and described with enough precision to support the intended procurement. Contracting personnel use this rule to avoid overbroad approvals, while contractors may see its effects in how the government structures quantities, pricing assumptions, and option language.
Key Rules
Individual action is the default
A D&F should ordinarily be prepared for a single contract action. Class D&Fs are allowed only when not otherwise prohibited and must comply with the rules for class determinations and findings in FAR 1.703.
Approval is limited in scope
The approval granted by a D&F applies only to the proposed contract action or actions reasonably described in the document. It cannot be stretched to cover unrelated or materially different actions.
Some flexibility is allowed
A D&F may be written to allow a reasonable degree of flexibility in how the approved action is carried out. This means the document can accommodate practical procurement variations, but only within the bounds of what it reasonably describes.
Quantity and price variations may be reasonable
When the D&F is applied, reasonable changes in estimated quantities or prices are permitted unless the D&F says otherwise. The key limit is reasonableness and consistency with the approved action.
Options must be quantified
If an option is anticipated, the D&F must identify the approximate quantity to be awarded initially and the extent of the increase that may be exercised through the option. This ensures the approval clearly covers both the base award and the potential expansion.
Responsibilities
Contracting Officer
Prepare or ensure preparation of the D&F for the intended contract action, describe the action with enough specificity, and make sure any flexibility or option language is clearly stated and limited to what is reasonably supported.
Approving Official
Review and approve the D&F only for the contract action(s) described, ensuring the scope is appropriate and that any class D&F or option treatment complies with the FAR.
Agency
Use D&Fs in a way that aligns with FAR requirements, including limiting approvals to the described action and following the rules for class D&Fs when they are used.
Contractor
Understand that any government approval reflected in a D&F is limited to the specific action described and does not create a general entitlement beyond the approved scope, quantities, or pricing assumptions.
Practical Implications
A D&F should be drafted narrowly enough to support the actual procurement, but flexibly enough to handle normal estimating changes without needing a new approval.
If the government later wants to change quantities or prices beyond what is reasonably described, it may need a revised D&F or a new approval.
Option planning must be explicit; failing to state the initial quantity and the option increase can create a compliance problem and delay award.
Class D&Fs can improve efficiency, but only when the underlying class of actions is properly defined and not prohibited.
A common pitfall is treating a D&F like a broad policy waiver; this section makes clear that the approval is action-specific and limited by its wording.
Official Regulatory Text
(a) A D&F shall ordinarily be for an individual contract action. Unless otherwise prohibited, class D&F’s may be executed for classes of contract actions (see 1.703 ). The approval granted by a D&F is restricted to the proposed contract action(s) reasonably described in that D&F. D&F’s may provide for a reasonable degree of flexibility. Furthermore, in their application, reasonable variations in estimated quantities or prices are permitted, unless the D&F specifies otherwise. (b) When an option is anticipated, the D&F shall state the approximate quantity to be awarded initially and the extent of the increase to be permitted by the option.