FAR 13—Simplified Acquisition Procedures

Scope of part.

FAR 13.000 defines the scope of FAR Part 13, which is the government’s simplified acquisition framework. It explains that Part 13 applies to acquisitions of supplies and services, including construction, research and development, commercial products, and commercial services, when the aggregate amount does not exceed the simplified acquisition threshold (SAT) in FAR 2.101. It also points readers to special authorities in Subpart 13.5 for certain commercial product and commercial service acquisitions above the SAT but within the stated dollar limits, including options, and to FAR Part 12 for commercial acquisitions above the micro-purchase threshold. In addition, it directs users to FAR 36.602-5 for simplified procedures when acquiring architect-engineer services. In practice, this section tells contracting personnel which streamlined rules apply, where the Part 13 authority ends, and when another FAR part or special procedure must be used instead.

Subpart 13.1

Definitions.

FAR 13.001 provides the core definitions used in FAR Part 13, which governs simplified acquisition procedures. This section defines four key terms: authorized individual, Governmentwide commercial purchase card, imprest fund, and third party draft. These definitions matter because they identify who may make purchases, what payment tools may be used, and how small-dollar acquisitions can be paid for under streamlined procedures. In practice, the definitions set the boundaries for agency purchasing authority, payment methods, and cash-handling arrangements, helping contracting personnel and other authorized buyers use simplified acquisition tools correctly and consistently. The section also points readers to Treasury guidance for third party drafts, showing that payment practices under Part 13 must align with broader financial management rules.

Purpose.

FAR 13.002 explains why the simplified acquisition procedures in FAR Part 13 exist and what they are meant to accomplish in federal contracting. It states that the part is designed to reduce administrative costs, improve opportunities for small business concerns—including small disadvantaged, women-owned, veteran-owned, HUBZone, and service-disabled veteran-owned small businesses—to receive a fair share of Government contracts, promote efficiency and economy in contracting, and avoid unnecessary burdens on both agencies and contractors. In practice, this section is a policy statement that guides how contracting officers should use simplified acquisition methods and how agencies should structure buying actions to be faster, less burdensome, and more accessible to small businesses. It does not itself set detailed procedural steps, but it frames the intent behind those procedures and helps explain why simplified acquisition rules are more streamlined than full and open competition procedures. For contractors, it signals that Part 13 acquisitions are intended to be easier to participate in and less administratively demanding, especially for small businesses. For contracting personnel, it reinforces that speed and simplicity should not come at the expense of fair access or sound procurement judgment.

Subpart 13.2

Policy.

FAR 13.003 states the core policy for using simplified acquisition procedures (SAP) and explains when they must be used, when they do not apply, and how they interact with other acquisition methods. It covers purchases at or below the micro-purchase threshold, purchases up to the simplified acquisition threshold, and certain commercial acquisitions under the higher SAP ceiling in FAR subpart 13.5. It also addresses mandatory small business set-asides, the ability to place awards under the 8(a), HUBZone, SDVOSB, and WOSB programs, and the limited reviewability of certain set-aside decisions at or below the simplified acquisition threshold. The section further explains when SAP may not be used because the requirement can be met through required sources of supply, existing IDIQ contracts, or other established contracts. In practice, this policy is meant to make low-dollar buying faster and less burdensome while still preserving competition, small business participation, and compliance with statutory and regulatory priorities. It also emphasizes avoiding improper contract splitting, using electronic commerce and purchase cards where practical, and selecting the most efficient acquisition method based on the circumstances.

Subpart 13.3

Legal effect of quotations.

FAR 13.004 explains the legal effect of a supplier’s quotation in simplified acquisition and purchase order practice. It covers three core topics: that a quotation is not an offer, that a Government order issued in response to a quotation is itself the offer, and that a binding contract is formed only when the supplier accepts that order. It also addresses how acceptance may occur—either by the supplier’s written notice, by furnishing the supplies or services, or by substantial performance—and it gives the Government the right to withdraw, amend, or cancel its offer before acceptance. In practice, this section matters because it determines when the parties are legally bound, which affects ordering, cancellation, disputes, and whether the Government can still change its mind before the supplier accepts. It is especially important in purchase order environments where the exchange of quotes and orders can look informal but still has real contract consequences.

Subpart 13.4

Subpart 13.5

List of laws inapplicable to contracts and subcontracts at or below the simplified acquisition threshold.

FAR 13.005 identifies which statutes do not apply to contracts and subcontracts at or below the simplified acquisition threshold (SAT), and it explains how additional laws may be added to or removed from that list. In practical terms, this section creates a streamlined legal framework for small-dollar federal buys by exempting certain statutory requirements that would otherwise add burden, delay, or administrative cost. The section specifically lists the inapplicable laws, including provisions related to ROTC access and military recruiting restrictions, contingent fees, examination of books and records, limits on subcontractor direct sales, arms-control-related measures, veterans’ employment reporting, and the Drug-Free Workplace requirement for most entities. It also explains the FAR Council’s authority to add later-enacted laws to the list, the exceptions for laws that impose criminal or civil penalties or expressly override the SAT exemption, and the petition process by which any individual may ask OFPP to add a law to the list. For contracting officers and contractors, the practical effect is that SAT acquisitions generally carry fewer statutory clauses and certifications, but users must still verify whether a law is expressly made applicable, whether an exception applies, and whether a subcontract is otherwise subject to the law.

Inapplicable provisions and clauses.

FAR 13.006 explains which FAR provisions and clauses do not apply to contracts and subcontracts at or below the simplified acquisition threshold (SAT), even though other statutes may still apply. This section specifically addresses the inapplicability of the Covenant Against Contingent Fees, Restrictions on Subcontractor Sales to the Government, Anti-Kickback Procedures, Audits and Records—Negotiation (with a limited exception for ARRA-funded actions using Alternate I), Contract Work Hours and Safety Standards—Overtime Compensation, Drug-Free Workplace (except for individuals), and Estimate of Percentage of Recovered Material Content for EPA-designated items. Its purpose is to streamline simplified acquisitions by removing clauses that are generally unnecessary at this dollar level, while preserving any statutory requirements that still apply independently of the FAR clause. In practice, contracting officers should not include these clauses in SAT-level solicitations or contracts unless a specific exception applies, and contractors should understand that omission of these clauses does not eliminate all legal obligations—some requirements may still arise from statute, funding source, or other contract terms. The section is important because it prevents over-cluttering simplified acquisitions with inapplicable clauses and reduces administrative burden, but it also requires careful attention to exceptions, especially for audit rights tied to ARRA funds and any separate statutory compliance obligations.