FAR 26.501—Applicability.
Plain-English Summary
FAR 26.501 explains when the requirements of FAR Subpart 26.5 apply and when they do not. In general, the subpart applies to federal contracts, including contracts awarded to 8(a) contractors under FAR Subpart 19.8 and contract modifications that require a justification and approval under FAR Subpart 6.3. The section then lists specific exclusions: contracts at or below the simplified acquisition threshold, except that the subpart still applies to all contracts of any value awarded to an individual; acquisitions of commercial products and commercial services under FAR Part 12; work performed outside the United States and its outlying areas, including any part of a contract performed there; certain law enforcement agency contracts when the agency head or designee determines the subpart would be inappropriate for undercover operations; and situations where applying the subpart would conflict with U.S. international obligations or the laws and regulations of a foreign country. Practically, this section tells contracting personnel when the subpart’s special requirements must be considered and when they are not required, which is critical for proper acquisition planning, solicitation drafting, and contract administration.
Key Rules
General applicability
FAR Subpart 26.5 applies to contracts and to contract modifications that require a justification and approval under FAR Subpart 6.3. This means the subpart is not limited to new awards; it can also apply when a modification triggers the underlying justification-and-approval process.
Includes 8(a) contracts
The subpart applies to contracts with 8(a) contractors under FAR Subpart 19.8. Agencies cannot assume that an 8(a) set-aside or award is exempt simply because it is made through the SBA’s 8(a) program.
Simplified acquisition threshold exception
Contracts at or below the simplified acquisition threshold are generally excluded. However, there is an important exception: the subpart still applies to all contracts of any value awarded to an individual.
Commercial products and services excluded
Contracts for the acquisition of commercial products and commercial services under FAR Part 12 are excluded. If the requirement is properly treated as commercial, the subpart’s requirements do not apply.
Outside the United States excluded
The subpart does not apply to contracts performed outside the United States and its outlying areas, or to any part of a contract performed outside those areas. Agencies must look at where performance actually occurs, not just where the contract is awarded.
Law enforcement undercover exception
For law enforcement agencies, the head of the agency or a designee may determine that applying the subpart would be inappropriate for undercover operations. This is a discretionary exception tied to operational needs and must be made by the proper official.
International and foreign law exception
The subpart does not apply where doing so would be inconsistent with U.S. international obligations or with the laws and regulations of a foreign country. This protects agencies from imposing requirements that would conflict with treaty commitments or host-nation law.
Responsibilities
Contracting Officer
Determine whether FAR Subpart 26.5 applies to the acquisition or modification, including checking the contract type, dollar value, place of performance, and whether the requirement is commercial. The contracting officer must also recognize when an exception applies and ensure the file supports the applicability decision.
Agency / Program Office
Provide accurate acquisition information, including whether work will be performed outside the United States, whether the requirement is commercial, and whether any law enforcement or foreign-law issues exist. Program personnel should flag facts that may trigger or eliminate subpart applicability early in planning.
Head of Law Enforcement Agency or Designee
For undercover operations, decide whether applying the subpart would be inappropriate and document that determination. This authority is limited to law enforcement agencies and must be exercised by the proper official.
Contractor
Understand whether the solicitation or contract includes requirements from this subpart and comply when applicable. Contractors should also alert the contracting officer if performance locations, commercial status, or other facts suggest an exception or change in applicability.
Legal / Policy Advisors
Advise on whether application of the subpart would conflict with international obligations or foreign law, and help document the basis for any exception. They may also assist in interpreting borderline cases such as mixed-location performance or unusual acquisition structures.
Practical Implications
Always check applicability before assuming the subpart applies or does not apply; the exceptions are specific and fact-dependent.
Mixed-location contracts can be tricky: if any part of the contract is performed outside the United States and its outlying areas, the exclusion may apply to that part, so the contract file should clearly identify where performance occurs.
Do not overlook the individual-award rule: even small-dollar contracts at or below the simplified acquisition threshold are still covered if awarded to an individual.
Commercial-item determinations matter because a Part 12 classification can remove the subpart from the acquisition entirely.
For law enforcement and foreign-performance situations, the exception is not automatic; it depends on a proper determination and should be documented to avoid audit or protest risk.
Official Regulatory Text
This subpart applies to contracts, including contracts with 8(a) contractors under FAR subpart 19.8 and modifications that require a justification and approval (see subpart 6.3 ), except contracts- (a) At or below the simplified acquisition threshold; however, the requirements of this subpart apply to all contracts of any value awarded to an individual; (b) For the acquisition of commercial products and commercial services (see part 12 ); (c) Performed outside the United States and its outlying areas or any part of a contract performed outside the United States and its outlying areas; (d) By law enforcement agencies, if the head of the law enforcement agency or designee involved determines that application of this subpart would be inappropriate in connection with the law enforcement agency’s undercover operations; or (e) Where application would be inconsistent with the international obligations of the United States or with the laws and regulations of a foreign country.