FAR 34—Major System Acquisition

Scope of part.

FAR 34.000 is the scope statement for FAR Part 34, and it tells readers what this part is meant to cover: acquisition policies and procedures for major systems, and the use of an Earned Value Management System (EVMS) in acquisitions designated as major acquisitions. It ties Part 34 to two external policy sources—OMB Circular No. A-109 for major systems and OMB Circular A-11, part 7 for EVMS—so the FAR’s rules are meant to be read and applied consistently with those government-wide management and budgeting requirements. In practice, this section does not itself impose detailed procedures; instead, it establishes the subject matter and policy framework for the rest of Part 34. For contracting officers, program managers, and acquisition teams, the practical significance is that when a procurement is a major system or a major acquisition, they must look to Part 34 for the acquisition approach and EVMS expectations, and they must ensure those actions align with the referenced OMB guidance. This section also signals that these are specialized acquisitions requiring more disciplined planning, oversight, and performance measurement than routine buys.

Subpart 34.1

Definition.

FAR 34.001 defines the term “effective competition” for use in FAR Part 34, which governs major systems acquisition. This definition explains when the Government can treat a procurement as competitively disciplined: there must be at least two contractors, they must act independently, and they must actively contend for the work. The competition must be real enough to give the Government a meaningful choice that is expected to produce the lowest cost or price alternative, or the best technical design that still meets the Government’s minimum needs. In practice, this definition matters because it helps contracting officers and acquisition teams decide whether a procurement environment is truly competitive, which affects acquisition strategy, source selection expectations, pricing leverage, and whether the Government can rely on competition to drive value. It also signals that nominal competition is not enough; the market condition must be strong enough to create genuine pressure on price, cost, or technical solution. For contractors, the definition clarifies that simply submitting a proposal is not enough if the market does not involve independent, active rivalry among multiple firms.

Policy.

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.

Subpart 34.2

Responsibilities.

FAR 34.003 explains who is responsible for setting up and managing the internal decision framework for major system acquisitions under A-109. It requires the agency head or designee to issue written procedures, and those procedures must identify the key decision points in each major system acquisition and the agency official(s) responsible for making those decisions. The section also describes what normally makes a system acquisition “major”: it must be critical to the agency mission, involve relatively large resource commitments for that agency, and require special management attention, including specific decisions by the agency head. Finally, it allows agencies to add their own criteria, consistent with A-109, for deciding which system acquisitions should be treated as major. In practice, this section matters because it drives governance, approval authority, and oversight for high-impact acquisitions, helping agencies control risk and ensure senior-level accountability.

Acquisition strategy.

FAR 34.004 addresses the acquisition strategy for a major system acquisition program. It requires the program manager, as designated by agency procedures, to develop a tailored strategy that serves as the overall plan for meeting the mission need in the most effective, economical, and timely way. The section also requires that the strategy be in writing, and that it be prepared in accordance with FAR subpart 7.1 unless that subpart conflicts with Part 34. In practice, this means the acquisition strategy is not just a planning document; it is the formal acquisition plan for the major system acquisition and must align program objectives, schedule, cost, and procurement approach from the outset.

General requirements.