FAR 34.002—Policy.
Plain-English Summary
FAR 34.002 states the core policy for acquiring major systems: agencies must pursue these acquisitions in the most effective, economical, and timely way possible. It specifically addresses how agencies should promote innovation and full and open competition in developing major system concepts, including expressing needs and acquisition objectives in mission terms rather than prescribing a specific system, and concentrating agency resources and special management attention on the early stages of major programs. It also requires agencies to sustain effective competition among alternative system concepts and sources for as long as doing so remains beneficial. In practice, this section is a policy statement that shapes acquisition strategy, requirements development, market research, and source selection planning for major systems, with the goal of avoiding premature lock-in to one solution and preserving competition and innovation where they still add value.
Key Rules
Acquire major systems efficiently
Agencies must structure major system acquisitions to be effective, economical, and timely. This is the overarching policy objective that guides all later decisions in the acquisition process.
Promote innovation and competition
Agencies must promote innovation and full and open competition in developing major system concepts, consistent with FAR part 6. The policy favors competitive concept development rather than early commitment to a single approach.
State needs in mission terms
Agencies should express requirements and program objectives in terms of the agency’s mission, not in terms of a specified system. This helps avoid unnecessarily narrowing the solution space and supports broader competition.
Focus attention early
Agencies must concentrate resources and special management attention on the initial stage of major programs. Early planning, analysis, and concept development are critical because decisions made at the start often determine cost, schedule, and performance outcomes.
Keep competition as long as useful
Agencies must sustain effective competition between alternative system concepts and sources for as long as it remains beneficial. Competition should continue until it no longer adds value, rather than ending too soon.
Responsibilities
Agency
Plan and manage major system acquisitions to achieve effective, economical, and timely outcomes; promote innovation and full and open competition; frame needs and objectives in mission-based terms; devote special management attention to early program stages; and preserve competition among concepts and sources while it remains beneficial.
Acquisition and program officials
Develop requirements and acquisition strategies that avoid premature specification of a single solution, support competitive concept exploration, and ensure early-stage planning receives focused oversight and resources.
Contracting Officer
Implement acquisition approaches that align with full and open competition requirements, support competitive development where appropriate, and avoid structuring solicitations in a way that unnecessarily restricts alternative concepts or sources.
Requirements developers / program managers
Define mission needs and program objectives without locking in a specific system too early, and support evaluation of alternative concepts during the initial stages of the program.
Practical Implications
This section pushes agencies to start with the mission problem, not the preferred product, which can materially affect how requirements are written and how competition is preserved.
A common pitfall is over-specifying a solution too early, which can reduce innovation, limit competition, and make the acquisition more expensive or less effective.
Another risk is failing to give the early phases of a major program enough management attention; mistakes made in concept development can be costly and difficult to correct later.
Contracting teams should watch for acquisition strategies that prematurely narrow the field of alternatives or sources before the agency has enough information to justify doing so.
For contractors, this policy can create opportunities to compete on alternative concepts, especially in early-stage development, but it also means proposals should clearly connect solutions to mission needs rather than just matching a preselected design.
Official Regulatory Text
The policies of this part are designed to ensure that agencies acquire major systems in the most effective, economical, and timely manner. Agencies acquiring major systems shall- (a) Promote innovation and full and open competition as required by part 6 in the development of major system concepts by- (1) Expressing agency needs and major system acquisition program objectives in terms of the agency’s mission and not in terms of specified systems to satisfy needs, and (2) Focusing agency resources and special management attention on activities conducted in the initial stage of major programs; and (b) Sustain effective competition between alternative system concepts and sources for as long as it is beneficial.