FAR 2.201—Contract clause.
Plain-English Summary
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.
Key Rules
Insert the clause
The contracting officer must include FAR 52.202-1, Definitions, in the solicitation and contract when the acquisition exceeds the simplified acquisition threshold. This is a mandatory prescription, not a discretionary one, for covered acquisitions.
Applies above SAT
The trigger for the clause is the simplified acquisition threshold. If the procurement is at or below that threshold, this specific prescription in FAR 2.201 does not require insertion of the clause.
Covers solicitations and contracts
The requirement applies both at the solicitation stage and in the resulting contract. That means the clause should be present in the solicitation documents and carried into the award instrument when the acquisition is covered.
Supports uniform interpretation
The purpose of the clause is to provide common definitions for terms used in the procurement. This reduces ambiguity and helps ensure that offerors, contracting officers, and contract administrators interpret key terms consistently.
Responsibilities
Contracting Officer
Determine whether the acquisition exceeds the simplified acquisition threshold and, if so, insert FAR 52.202-1, Definitions, into the solicitation and resulting contract.
Agency Acquisition Staff
Use the correct solicitation and contract templates and ensure the clause is included whenever the threshold trigger is met.
Contractor/Offeror
Review the included definitions carefully and use them when preparing proposals, negotiating terms, and performing the contract.
Practical Implications
This is a basic but easy-to-miss drafting requirement: if the acquisition exceeds the simplified acquisition threshold, omitting the clause can create avoidable ambiguity and compliance issues.
Contractors should not assume ordinary dictionary meanings control; the FAR definitions in the clause may govern how key terms are interpreted.
Contracting officers should verify the threshold calculation early, because the clause decision affects both the solicitation package and the final contract.
If the clause is missing from a covered acquisition, it can complicate evaluation, administration, and dispute resolution, especially where a term has a specialized FAR meaning.
Because the section is only a prescription, users must still consult the clause text at FAR 52.202-1 to understand the actual definitions and any related interpretive rules.
Official Regulatory Text
Insert the clause at 52.202-1 , Definitions, in solicitations and contracts that exceed the simplified acquisition threshold.