FAR 16.000—Scope of part.
Plain-English Summary
FAR 16.000 is the opening scope statement for FAR Part 16, which covers contract types and the policies, procedures, and guidance used to choose among them. It tells contracting personnel and contractors that this part is about the kinds of contracts that may be used in federal acquisitions and how to select a contract type that fits the circumstances of the procurement. In practice, this section matters because contract type affects risk allocation, pricing structure, administration burden, incentives, and the level of cost or performance uncertainty each party bears. Although the text is brief, it frames the entire part by signaling that the government must make a deliberate, acquisition-specific contract type decision rather than using a one-size-fits-all approach. It also alerts readers that the detailed rules in Part 16 are intended to guide both policy development and day-to-day source selection and contract formation decisions.
Key Rules
Part 16 covers contract types
This part addresses the types of contracts that may be used in federal acquisitions. It is the governing location for understanding the available contract structures and how they fit different procurement situations.
Selection must fit the acquisition
The part provides guidance for selecting a contract type appropriate to the circumstances of the acquisition. The choice should be based on the specific requirements, risks, and conditions of the procurement rather than habit or convenience.
Policies and procedures are prescribed
Part 16 does more than describe contract types; it also establishes the policies and procedures associated with using them. Contracting personnel must follow these rules when planning, awarding, and administering contracts.
Guidance supports judgment
The section indicates that contract type selection is a guided decision-making process. Contracting officers must use the part’s guidance to exercise sound judgment in matching contract structure to the acquisition environment.
Responsibilities
Contracting Officer
Identify and select a contract type that is appropriate to the circumstances of the acquisition, using the policies, procedures, and guidance in FAR Part 16.
Acquisition Team
Consider the nature of the requirement, associated risks, and administrative implications when advising on the most suitable contract type.
Agency
Apply Part 16 policies and procedures in its acquisition planning and contracting practices, and ensure personnel understand how to choose contract types appropriately.
Contractor
Understand that the government may use different contract types depending on the acquisition and be prepared to operate under the risk and pricing structure of the selected type.
Practical Implications
Contract type is a core acquisition decision, not a clerical detail; it affects pricing, incentives, oversight, and risk allocation.
A common pitfall is choosing a contract type by routine or preference instead of matching it to the acquisition’s facts and uncertainties.
Contracting officers should use Part 16 early in acquisition planning because contract type decisions influence solicitation strategy and negotiation posture.
Contractors should review the contract type carefully because it determines how payment, risk, and performance expectations will work in practice.
Because this section is a scope statement, it does not provide the detailed rules itself; users must read the rest of Part 16 for the specific requirements and limitations on each contract type.
Official Regulatory Text
This part describes types of contracts that may be used in acquisitions. It prescribes policies and procedures and provides guidance for selecting a contract type appropriate to the circumstances of the acquisition.