FAR 37.501—Definition.
Plain-English Summary
FAR 37.501 is a definition section for Subpart 37.5, and it explains what the term “best practices” means when the FAR uses it in this subpart. The definition covers two related ideas: first, that best practices are techniques agencies may use to help detect problems in the acquisition, management, and administration of service contracts; and second, that these techniques are practical methods learned from experience that can improve the procurement process. In practice, this means the subpart is pointing agencies toward proven, experience-based approaches rather than rigid new legal requirements. The section matters because service contracting often involves performance, oversight, and administration challenges, and the definition frames best practices as tools for identifying and preventing those issues. It also signals that the concept is advisory and process-oriented: agencies may adopt these techniques to strengthen acquisition outcomes, but the definition itself does not impose a standalone mandate on contractors. For contracting professionals, this section provides the baseline meaning of a term that will shape how the rest of the subpart is read and applied.
Key Rules
Best practices are techniques
In this subpart, “best practices” means techniques agencies may use. The term refers to practical methods, not a separate regulatory program or a mandatory checklist.
Used to detect problems
The techniques are intended to help agencies identify problems in the acquisition, management, and administration of service contracts. The focus is on early detection and improved oversight.
Experience-based methods
Best practices are practical techniques gained from experience. The definition emphasizes proven approaches developed through real-world procurement experience rather than theory alone.
Improve procurement process
These techniques may be used to improve the procurement process. The definition ties best practices to better planning, execution, and administration of service contracts.
Responsibilities
Agency
Consider and apply experience-based techniques that can help detect and address problems in service contract acquisition, management, and administration. Use best practices as a tool to improve procurement outcomes.
Contracting Officers
Understand the meaning of “best practices” in this subpart and use it as guidance when planning, awarding, and administering service contracts. Apply practical methods that support oversight and process improvement.
Contractor
No direct duty is created by this definition alone. Contractors should recognize that agencies may use best-practice techniques in evaluating, managing, and administering service contracts.
Practical Implications
This definition is mainly interpretive: it tells readers how to understand the term “best practices” throughout Subpart 37.5.
Because the term is tied to detecting problems in service contracts, agencies should expect more attention to oversight, administration, and performance management.
The definition is permissive, not mandatory; it says agencies may use best practices, so it does not by itself create an enforceable requirement.
A common pitfall is treating “best practices” as a fixed list. Here, the term is broader and refers to practical, experience-based techniques that can vary by agency and situation.
Contractors should watch for agency procedures or solicitation requirements that reflect these best practices, even though the definition itself does not directly impose contractor obligations.
Official Regulatory Text
Best practices , as used in this subpart, means techniques that agencies may use to help detect problems in the acquisition, management, and administration of service contracts. Best practices are practical techniques gained from experience that agencies may use to improve the procurement process.