FAR 37.504—Contracting officials’ responsibilities.
Plain-English Summary
FAR 37.504 is a short but important policy provision that tells contracting officials to use “best practices” when acquiring services and when managing and administering service contracts. Its focus is not on a specific contract clause or procedure, but on the government’s broader responsibility to buy services intelligently and manage them effectively after award. The section points readers to OFPP Policy Letter 93-1, which is the source for the best-practices concept and related management expectations. In practical terms, this means contracting officials should think beyond price and basic compliance and use proven methods to improve planning, competition, performance oversight, and contract administration. The section matters because service contracts often involve performance risk, labor mix issues, and ongoing oversight needs, so weak acquisition planning or poor administration can quickly lead to cost growth, schedule slippage, or unsatisfactory outcomes.
Key Rules
Use best practices
Contracting officials should apply proven best-practice techniques when buying services. The rule is directional rather than prescriptive, but it clearly expects officials to use sound acquisition methods instead of ad hoc or purely transactional approaches.
Apply them in management
Best practices are required not only at award, but also in contract management and administration. This means the government should continue disciplined oversight after contract award, including monitoring performance and managing changes effectively.
Follow OFPP guidance
The section specifically ties the requirement to OFPP Policy Letter 93-1. Contracting officials should look to that policy for the underlying best-practice concepts and for practical guidance on service acquisition and administration.
Focus on services contracts
The provision is aimed at contracting for services, where performance management is often more complex than for supplies. Officials should pay particular attention to requirements definition, quality control, and ongoing surveillance of contractor performance.
Responsibilities
Contracting Officials
Ensure that best-practice techniques are used when acquiring services and when managing and administering service contracts. They should incorporate sound planning, oversight, and administration methods consistent with OFPP Policy Letter 93-1.
Contracting Officers
Translate the policy into day-to-day acquisition actions, including structuring the acquisition, selecting appropriate oversight methods, and ensuring the contract is administered in a way that supports successful performance.
Program/Requirements Personnel
Support the use of best practices by helping define requirements clearly, identifying performance outcomes, and participating in effective contract management and administration.
Agency Acquisition Leadership
Promote and reinforce best-practice use across service acquisitions through policy, training, and oversight so contracting staff apply consistent and effective methods.
Practical Implications
This section is a reminder that service contracting is not just about award procedures; it also requires disciplined management after award.
A common pitfall is treating “best practices” as optional or vague guidance rather than an expectation to use proven acquisition and administration methods.
Contracting officials should pay close attention to performance monitoring, because weak oversight is one of the fastest ways service contracts fail to deliver value.
The reference to OFPP Policy Letter 93-1 means users should not read this section in isolation; the policy guidance provides the practical framework behind the rule.
For contractors, this often means more structured oversight, clearer performance expectations, and closer government involvement in contract administration than they may see in simpler supply procurements.
Official Regulatory Text
Contracting officials should ensure that "best practices" techniques are used when contracting for services and in contract management and administration (see OFPP Policy Letter93-1).