FAR 7.000—Scope of part.
Plain-English Summary
FAR 7.000 states the scope of FAR Part 7 and tells readers what this part is for: it prescribes policies and procedures for developing acquisition plans, deciding whether to use commercial or Government resources to acquire supplies or services, determining whether leasing equipment is more economical than buying it, and identifying whether functions are inherently governmental. In practice, this part is the planning and sourcing framework that sits upstream of the actual solicitation and award process. It helps agencies make disciplined, supportable decisions about how to meet a need before they commit to a contract, task order, lease, or in-house performance. For contractors, it signals that many important acquisition outcomes are shaped early, during planning and make-or-buy analysis, not just during competition. For contracting officers and program officials, it establishes that these decisions must be made using prescribed policies and procedures rather than ad hoc judgment. The section is brief, but it points to several major acquisition policy areas that affect competition, cost, sourcing, and the proper division between governmental and contractor performance.
Key Rules
Acquisition planning required
Part 7 covers the policies and procedures for developing acquisition plans. This means agencies must plan acquisitions in advance and use a structured process to define needs, strategy, schedule, risks, and responsibilities before proceeding.
Commercial versus Government resources
The part addresses decisions about whether to use commercial or Government resources to acquire supplies or services. Agencies must evaluate the available sourcing options and choose the approach that best fits the requirement and policy objectives.
Lease or buy analysis
Part 7 includes deciding whether it is more economical to lease equipment rather than purchase it. The agency must compare costs and practical considerations to determine the most economical method of obtaining equipment.
Inherently governmental functions
The part also covers determining whether functions are inherently governmental. Agencies must identify activities that must be performed by Government personnel and not assigned to contractors.
Policy and procedure framework
This section is a scope statement, not a detailed rule set by itself. It tells the reader that the substantive requirements for these topics are found elsewhere in Part 7 and related FAR provisions, but that these subjects are governed by formal acquisition policy.
Responsibilities
Agency
Establish and follow policies and procedures for acquisition planning, sourcing decisions, lease-versus-buy analysis, and identification of inherently governmental functions.
Contracting Officer
Apply Part 7 requirements when planning acquisitions and making or documenting sourcing and acquisition strategy decisions, and ensure the acquisition approach is supportable and compliant.
Program/Requirement Officials
Provide the mission need, technical input, and cost or performance information needed to support acquisition planning, resource selection, and lease-versus-buy decisions.
Agency Leadership/Management
Ensure the organization has processes to distinguish inherently governmental functions from contractor-performable work and to approve acquisition approaches consistent with policy.
Contractors
Understand that sourcing and performance decisions may be shaped by acquisition planning and inherently governmental determinations, and be prepared to support proposals or market information when requested.
Practical Implications
This section matters early in the acquisition lifecycle because it frames how the Government decides what to buy, how to buy it, and who may perform the work.
A common pitfall is treating acquisition planning as a paperwork exercise; in reality, weak planning can lead to poor competition strategy, schedule delays, cost growth, or an improper sourcing decision.
Another risk is failing to document the basis for choosing commercial resources, Government resources, leasing, or purchasing; unsupported decisions are vulnerable to protest, audit, or management challenge.
Inherently governmental determinations are especially sensitive: if an agency misclassifies a function, it can create legal, policy, and oversight problems and may improperly outsource work that must remain in Government hands.
For contractors, the practical takeaway is that many opportunities and performance boundaries are set before solicitation release, so early market engagement and clear understanding of agency planning needs can be important.
Official Regulatory Text
This part prescribes policies and procedures for- (a) Developing acquisition plans; (b) Determining whether to use commercial or Government resources for acquisition of supplies or services; (c) Deciding whether it is more economical to lease equipment rather than purchase it; and (d) Determining whether functions are inherently governmental.