FAR 37.203—Policy.
Plain-English Summary
FAR 37.203 sets the basic policy for when agencies may use advisory and assistance services and when they may not. It explains that these services are a legitimate tool to improve Government operations, and it identifies the mission-related purposes for which agencies may contract for them, such as obtaining outside viewpoints, industry research insights, expert opinions, help with complex issues, support for organizational operations, and improved managerial or hardware systems. The section also draws important boundaries: these services cannot be used to perform inherently governmental or direct agency responsibilities, to evade personnel or hiring rules, to favor former Government employees, to influence legislation, or to duplicate advice already available inside the Government. Finally, it imposes a special payment limitation on contractor support for evaluating proposals for an initial contract award, allowing that work only when qualified Government personnel are unavailable and a written determination is made, when the contractor is an authorized FFRDC meeting the applicable criteria, or when another law specifically authorizes the function. In practice, this section is about ensuring agencies use outside expertise only when truly needed, while protecting Government decision-making, workforce rules, and procurement integrity.
Key Rules
Advisory services are permissible
Agencies may use advisory and assistance services at any organizational level when doing so helps managers improve effectiveness or economy. The policy recognizes these services as a legitimate acquisition tool, not an exception to be justified only in unusual cases.
Mission-essential purposes only
Agencies may contract for these services only when they are essential to the agency’s mission and fit one of the listed purposes, such as obtaining outside viewpoints, expert knowledge, research developments, alternative solutions, operational support, or more efficient systems.
No outsourcing of core agency duties
These services may not be used for policy, decision-making, or managerial work that is the direct responsibility of agency officials. The rule preserves accountability by keeping core governmental judgments with Government personnel.
No circumvention of workforce rules
The services cannot be used to bypass personnel ceilings, pay limits, or competitive hiring procedures. Agencies must not use contracts as a substitute for authorized staffing actions.
No preferential treatment or lobbying use
Agencies may not contract on a preferential basis with former Government employees, and they may not use these services to influence or enact legislation. This protects fairness, ethics, and separation between procurement support and legislative advocacy.
No duplication of available in-house expertise
Agencies may not buy professional or technical advice that is readily available within the agency or another Federal agency. Before contracting out, the agency must consider whether the needed expertise already exists in Government.
Special limits on proposal evaluations
Contractors generally may not be paid to evaluate or analyze proposals for an initial contract award unless a qualified Government workforce is not readily available and a written determination is made under FAR 37.204, the contractor is an authorized FFRDC performing qualifying work, or another law specifically allows it.
Responsibilities
Agency
Use advisory and assistance services only when they are mission-essential and fit the permitted purposes. Ensure the services are not used to replace Government decision-making, evade workforce controls, influence legislation, or duplicate available Federal expertise.
Contracting Officer
Verify that the proposed advisory and assistance services are allowable under FAR 37.203 and that any special restriction on proposal-evaluation support is satisfied before award. Ensure the file supports any required written determination and that the acquisition does not conflict with workforce or ethics limitations.
Program/Requirement Officials
Define the need carefully, confirm that outside support is truly necessary, and avoid drafting requirements that assign inherently governmental or readily available in-house functions to contractors. Identify whether the work falls within one of the permitted purposes.
Agency Officials with Direct Responsibility
Retain and perform policy, decision-making, and managerial functions that are the direct responsibility of the Government. Do not delegate those core judgments to contractor personnel.
Contractor
Perform only the advisory and assistance work authorized by the contract and stay within the scope approved by the Government. Do not assume responsibility for Government decisions, legislative influence, or proposal-evaluation work unless a specific exception applies.
FFRDC
When used for proposal-evaluation-related work, meet the statutory authorization and the criteria referenced in FAR 35.017-3. Operate within the special legal framework that permits such support.
Practical Implications
This section is a gatekeeper for buying outside expertise: the question is not just whether the work is useful, but whether it is mission-essential and legally appropriate.
A common pitfall is using contractors for work that looks advisory but actually involves Government judgment, such as policy recommendations that effectively decide the outcome for agency officials.
Another frequent issue is trying to use service contracts to fill staffing gaps or avoid hiring limits; FAR 37.203 expressly prohibits that approach.
Agencies should document why in-house expertise is unavailable before contracting for advice, especially when the work could be performed by another Federal agency.
For proposal evaluations, contracting officers should be especially careful: contractor participation is tightly limited and usually requires a written determination or a specific statutory exception.
Official Regulatory Text
(a) The acquisition of advisory and assistance services is a legitimate way to improve Government services and operations. Accordingly, advisory and assistance services may be used at all organizational levels to help managers achieve maximum effectiveness or economy in their operations. (b) Subject to 37.205 , agencies may contract for advisory and assistance services, when essential to the agency’s mission, to- (1) Obtain outside points of view to avoid too limited judgment on critical issues; (2) Obtain advice regarding developments in industry, university, or foundation research; (3) Obtain the opinions, special knowledge, or skills of noted experts; (4) Enhance the understanding of, and develop alternative solutions to, complex issues; (5) Support and improve the operation of organizations; or (6) Ensure the more efficient or effective operation of managerial or hardware systems. (c) Advisory and assistance services shall not be- (1) Used in performing work of a policy, decision-making, or managerial nature which is the direct responsibility of agency officials; (2) Used to bypass or undermine personnel ceilings, pay limitations, or competitive employment procedures; (3) Contracted for on a preferential basis to former Government employees; (4) Used under any circumstances specifically to aid in influencing or enacting legislation; or (5) Used to obtain professional or technical advice which is readily available within the agency or another Federal agency. (d) Limitation on payment for advisory and assistance services. Contractors may not be paid for services to conduct evaluations or analyses of any aspect of a proposal submitted for an initial contract award unless- (1) Neither covered personnel from the requesting agency, nor from another agency, with adequate training and capabilities to perform the required proposal evaluation, are readily available and a written determination is made in accordance with 37.204 ; (2) The contractor is a Federally-Funded Research and Development Center (FFRDC) as authorized in 41 U.S.C. 1709(c) and the work placed under the FFRDC's contract meets the criteria of 35.017-3 ; or (3) Such functions are otherwise authorized by law.