Contract clause.
FAR 2.201 is a short but important prescription rule that tells contracting personnel when to include the clause at FAR 52.202-1, Definitions. Its sole topic is the threshold for inserting that clause: it must be included in solicitations and contracts that exceed the simplified acquisition threshold. In practice, this means the clause is not optional for larger acquisitions, because it helps ensure the parties use the same defined terms when reading the solicitation, evaluating offers, and administering the resulting contract. The section does not itself define the terms; instead, it directs users to include the clause that contains the operative definitions and related interpretive guidance. For contracting officers, the rule is a drafting requirement that affects solicitation preparation and contract formation. For contractors, it signals that the solicitation and contract will rely on standardized FAR definitions, which can affect proposal interpretation, compliance, and dispute avoidance.