FAR 5.401—General.
Plain-English Summary
FAR 5.401 sets the basic information-security and disclosure policy for the acquisition process. It addresses three main topics: maintaining a high level of business security, limiting disclosure of certain procurement information to the public, and applying these rules to all Government personnel involved in any stage of the acquisition cycle. In practice, this section is meant to protect the integrity of source selection, prevent unfair competitive advantage, and preserve the Government’s ability to obtain candid internal advice and sensitive contractor information. It also ties into broader disclosure laws and policies, including the Freedom of Information Act and the Privacy Act, by recognizing that some information may be releasable while other information must be withheld. For contracting officers, the section is a reminder to control what is shared, especially when gathering market or estimating data from outside sources. For agencies and personnel, it establishes that confidentiality and disciplined communication are not optional—they are part of safeguarding the procurement process.
Key Rules
Maintain business security
The Government must maintain a high level of business security to preserve the integrity of the acquisition process. This means procurement-related information should be handled carefully so that the process remains fair, credible, and free from improper influence.
Protect estimate-source information
When contracting officers obtain information from potential contractors or other non-Government sources to prepare Government estimates, they must not publicize or discuss that information with potential contractors. The purpose is to prevent the very firms that supplied the information, or their competitors, from gaining an unfair advantage.
Disclose information broadly, with limits
Contracting officers may make maximum information available to the public, but only to the extent the information is not protected. The rule favors openness, but it does not override confidentiality, privacy, or internal deliberative protections.
Withhold unfair-advantage information
Information on plans that would provide undue or discriminatory advantage to private or personal interests must not be disclosed. This protects the fairness of competition and prevents selective access from distorting the acquisition process.
Protect confidential offeror data
Information received in confidence from an offeror must be safeguarded. Contractors can provide sensitive data to the Government only if they can trust it will not be improperly released or used against them.
Follow FOIA and Privacy Act limits
Information that requires protection under the Freedom of Information Act or the Privacy Act must be withheld or handled according to those laws and their implementing regulations. FAR 5.401 does not create a separate disclosure standard; it reinforces existing legal protections.
Protect internal agency communications
Internal agency communications, such as technical reviews, contracting authority discussions, and recommendations, are protected from disclosure. This allows Government personnel to exchange candid advice and analysis without undermining decision-making or exposing internal deliberations.
Apply the policy across the acquisition cycle
These requirements apply to all Government personnel who participate directly or indirectly in any stage of the acquisition cycle. The rule is not limited to contracting officers; it covers anyone whose actions could affect procurement integrity.
Responsibilities
Contracting Officer
Maintain business security in procurement activities, control disclosure of estimate-related information obtained from outside sources, and ensure public release decisions respect confidentiality, FOIA, Privacy Act, and internal communication protections.
Government Personnel Involved in Acquisition
Handle acquisition information carefully at every stage, avoid unauthorized disclosure, and follow the same security and confidentiality rules whether they are directly or indirectly involved in the procurement process.
Agency
Support policies and procedures that preserve procurement integrity, train personnel on disclosure limits, and ensure internal communications and sensitive information are protected consistently across the acquisition cycle.
Potential Contractors / Offerors
Provide information to the Government with the understanding that confidential submissions will be protected, while recognizing that only information not subject to protection may be publicly disclosed.
Practical Implications
This section is a procurement-integrity rule as much as a disclosure rule: careless conversations, emails, or draft documents can create unfair competitive advantage or undermine trust in the acquisition.
Contracting officers should be especially careful when using market research or contractor-supplied data to build Government estimates; that information should not be shared back out in a way that reveals sources or pricing intelligence.
Not everything can be released just because the Government wants transparency. FOIA, the Privacy Act, confidential offeror information, and internal deliberative materials can all limit disclosure.
A common pitfall is treating internal reviews, recommendations, or source-selection-related discussions as if they were routine records; these materials often require protection and should be handled on a need-to-know basis.
Because the rule applies to all personnel in the acquisition cycle, agencies should train program, technical, legal, and contracting staff—not just contracting officers—on what can and cannot be discussed externally.
Official Regulatory Text
(a) A high level of business security must be maintained in order to preserve the integrity of the acquisition process. When it is necessary to obtain information from potential contractors and others outside the Government for use in preparing Government estimates, contracting officers shall ensure that the information is not publicized or discussed with potential contractors. (b) Contracting officers may make available maximum information to the public, except information- (1) On plans that would provide undue or discriminatory advantage to private or personal interests; (2) Received in confidence from an offeror; (3) Otherwise requiring protection under Freedom of Information Act (see subpart 24.2 ) or Privacy Act (see subpart 24.1 ); or (4) Pertaining to internal agency communications ( e.g., technical reviews, contracting authority or other reasons, or recommendations referring thereto). (c) This policy applies to all Government personnel who participate directly or indirectly in any stage of the acquisition cycle.