FAR 52.202-1—Definitions.
Plain-English Summary
FAR 52.202-1, Definitions, tells contracting parties how to interpret words and terms used in solicitations and contracts when those terms are defined somewhere in the FAR. Its main purpose is to create a default rule: if a term has a FAR definition, that definition controls, and it is the definition in FAR 2.101 that was in effect when the solicitation was issued. The clause also identifies important exceptions, including when the solicitation or an amendment supplies a different definition, when the parties expressly agree to a different meaning, when the relevant FAR part/subpart/section gives the term a special meaning, when FAR part 31 uses the term for cost principles and procedures, and when the term is an acquisition-related threshold that later changes because of inflation adjustments under FAR 1.109. In practice, this clause reduces disputes over meaning, helps keep solicitations and contracts consistent with the FAR, and tells contractors and contracting officers when they must follow a special or updated definition instead of the general FAR 2.101 definition. It is especially important for terms that affect eligibility, pricing, compliance, reporting, and threshold-based requirements.
Key Rules
FAR definitions control by default
If a solicitation provision or contract clause uses a term defined in the FAR, the term has the same meaning as the FAR 2.101 definition in effect when the solicitation was issued. This is the baseline rule unless one of the listed exceptions applies.
Solicitation can override
A solicitation or amended solicitation may provide a different definition. If it does, that solicitation-specific definition governs for that procurement instead of the default FAR 2.101 meaning.
Parties may agree differently
The contracting parties may agree to a different definition. Any such agreement should be clear and documented, because it changes how the term will be interpreted under the contract.
Special FAR text controls
If the FAR part, subpart, or section where the provision or clause is prescribed gives the term a different meaning, that special meaning applies. This prevents a general FAR definition from overriding a more specific rule in the applicable FAR coverage.
Part 31 definitions apply to cost rules
If the word or term is defined in FAR part 31 for use in the cost principles and procedures, that part 31 meaning applies in the cost context. This exception recognizes that cost accounting and allowability rules may use terms differently than general FAR usage.
Inflation-adjusted thresholds update
If the term defines an acquisition-related threshold and FAR 1.109(a) later adjusts that threshold for inflation, the changed threshold applies for the rest of the contract term unless another threshold adjustment occurs later. This means threshold-based obligations can shift after award.
Responsibilities
Contracting Officer
Use the FAR 2.101 definition in effect when the solicitation is issued unless a listed exception applies. Clearly state any solicitation-specific definition, ensure amendments do not create ambiguity, and apply inflation-adjusted thresholds when required by FAR 1.109.
Contractor
Read the solicitation and contract carefully to identify whether a term is using the default FAR meaning or an exception. Track threshold changes during performance and ensure internal compliance, pricing, and reporting practices reflect the controlling definition.
Agency
Maintain consistent acquisition policy and drafting practices so terms are defined clearly and exceptions are used intentionally. Update threshold-based requirements when FAR inflation adjustments take effect and ensure personnel understand when special definitions apply.
Contracting Parties
If they choose a different definition than the default FAR meaning, make that agreement explicit and unambiguous. Avoid informal assumptions about term meanings, especially where the term affects rights, obligations, or cost treatment.
Practical Implications
This clause is a built-in interpretation rule, so disputes often turn on whether a term was defined elsewhere in the solicitation or in a more specific FAR provision. Contractors should not assume a familiar FAR term always means the same thing in every clause.
Threshold-based requirements can change during contract performance because inflation adjustments may apply to the remaining term of the contract. Both sides should monitor FAR 1.109 updates, especially for clauses tied to dollar thresholds.
A common pitfall is overlooking an amended solicitation that changes a definition. If the amendment revises a term, that revised meaning can control even if the original solicitation used the standard FAR definition.
Another frequent mistake is using a general FAR definition when part 31 or a specific clause uses the term differently. In cost and pricing matters, the more specific rule often controls.
For contracting officers, the practical lesson is to define terms deliberately and consistently. For contractors, the practical lesson is to confirm the controlling definition before relying on it for compliance, pricing, or proposal assumptions.
Official Regulatory Text
As prescribed in 2.201 , insert the following clause: Definitions (Jun 2020) When a solicitation provision or contract clause uses a word or term that is defined in the Federal Acquisition Regulation (FAR), the word or term has the same meaning as the definition in FAR 2.101 in effect at the time the solicitation was issued, unless- (a) The solicitation, or amended solicitation, provides a different definition; (b) The contracting parties agree to a different definition; (c) The part, subpart, or section of the FAR where the provision or clause is prescribed provides a different meaning; (d) The word or term is defined in FAR part 31 , for use in the cost principles and procedures; or (e) The word or term defines an acquisition-related threshold, and if the threshold is adjusted for inflation as set forth in FAR 1.109 (a), then the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment; see FAR 1.109 (d). (End of clause)