FAR 7.1—Subpart 7.1

Definitions.

FAR 7.101 provides the definitions used in FAR Subpart 7.1, which governs acquisition planning. This section defines four key terms: acquisition streamlining, life-cycle cost, order, and planner. These definitions matter because they set the vocabulary for when and how agencies plan acquisitions, what costs must be considered over the full life of a product or service, when an action is treated as an order under an existing contract vehicle, and who is responsible for preparing or carrying out the acquisition plan. In practice, these terms shape how contracting officers and program offices structure requirements, decide what belongs in a solicitation, evaluate total cost to the Government, and assign planning responsibility. The definitions also help distinguish between formal written planning requirements and planning functions handled without a written plan in smaller or simpler acquisitions. Understanding these terms is essential for applying the rest of Subpart 7.1 correctly and avoiding planning errors that can affect competition, cost, schedule, and contract performance.

Policy.

FAR 7.102 states the core policy for acquisition planning across all federal acquisitions. It requires agencies to do acquisition planning and market research for every buy, with the goal of maximizing the use of commercial products and commercial services, or if those are not available, nondevelopmental items. It also ties planning to competition policy by requiring full and open competition when applicable, or otherwise the maximum practicable competition consistent with the requirement and the nature of the supplies or services. In addition, it requires agencies to consider the appropriate contract type under FAR part 16 and to evaluate whether existing vehicles—such as pre-existing contracts, interagency contracts, and intra-agency contracts—can satisfy the need before creating a new contract action. The section also explains that acquisition planning must integrate all personnel who have significant roles in the acquisition, so the process is coordinated rather than siloed. Practically, this policy is meant to help the Government buy the right thing, in the right way, at the right time, while improving efficiency, economy, and timeliness. It also recognizes that agencies with established acquisition planning systems do not need to rewrite them if those systems already generally satisfy the detailed planning requirements in FAR 7.104 and 7.105.

Agency-head responsibilities.

FAR 7.103 tells the agency head, or a designated official, to set up the internal procedures that make acquisition planning work across the agency. This section covers the full range of planning responsibilities: promoting full and open competition; encouraging commercial products, commercial services, and nondevelopmental items; making sure planners define needs and specifications properly; documenting contract type selection; setting planning thresholds and levels of formality; aligning statements of work with performance outcomes and cost estimates; deciding when plans are written and how they are organized; designating planners; reviewing and approving plans; setting criteria for design-to-cost and life-cycle-cost methods; allowing waivers for urgent acquisitions; requiring pre-award review of acquisition history and product descriptions; incorporating the metric system; complying with sustainable acquisition and sustainable federal building requirements; addressing environmental compliance for contractor-operated Government facilities and vehicles; ensuring ICT accessibility; making the required advisory and assistance services determination; preventing inherently governmental functions from being contracted out; using lessons learned and performance-based methods; and structuring requirements to support small business participation and avoid unjustified bundling. In practice, this section is the agency’s roadmap for how acquisition planning must be organized before a solicitation is issued or a contract is awarded. It matters because many downstream procurement problems—poor competition, weak requirements, bad contract type choices, inaccessible products, sustainability failures, small business barriers, or inadequate oversight—usually start with weak planning. For contractors, it signals the policy environment agencies must follow when shaping requirements and solicitations. For contracting officers and planners, it is a checklist of agency-level controls that should be reflected in acquisition plans, approvals, and file documentation.

General procedures.

FAR 7.104 sets out the general procedures for acquisition planning, which is the front-end process agencies use to shape a procurement before solicitation or order placement. It covers when planning must start, who must be involved on the planning team, how planners should use prior acquisition experience, when and how plans must be reviewed and revised, and why requirements and logistics personnel should avoid urgent or unrealistic schedules that limit competition and raise prices. It also requires coordination with the contracting officer, and with the competition advocate when other-than-full-and-open competition is contemplated. In addition, it addresses coordination with the cognizant small business specialist when the acquisition strategy may involve substantial bundling, including the specialist’s duty to alert the OSDBU or Office of Small Business Programs if bundling is unnecessary, unjustified, or not properly identified. Finally, it requires early nomination of a contracting officer’s representative (COR) and prompt designation and authorization by the contracting officer. In practice, this section is about making acquisition planning collaborative, timely, competition-conscious, small-business-aware, and ready for effective contract administration from the start.

Contents of written acquisition plans.

FAR 7.105 tells agencies what must go into a written acquisition plan and why the plan matters. It requires the planner to identify decision milestones and address the technical, business, management, and other major factors that will shape the acquisition. The section covers acquisition background and objectives, including the statement of need, applicable conditions, cost goals and cost concepts such as life-cycle cost, design-to-cost, and should-cost, required capabilities or performance, delivery or performance-period requirements, trade-offs, risks, and acquisition streamlining. It also requires a plan of action covering sources, competition strategy, small business considerations, market research, bundling and consolidation impacts, component breakout, spares and repair parts, and subcontract competition. For service contracts and service orders, it adds a specific requirement to explain how performance-based acquisition methods will be used or why they will not be used. In practice, this section is the roadmap for how the government will buy, compete, manage, and control the acquisition, and it is often the key document used to align requirements, acquisition strategy, and approval decisions.

Additional requirements for major systems.

FAR 7.106 addresses additional planning requirements for major systems and focuses on building long-term competition and supply flexibility into both development and production contracts. It covers what planners should consider when soliciting major system development contracts, including whether offerors should propose design choices that use items already available in the agency supply system, the broader national supply system, or the commercial market, and whether the Government should be able to compete future purchases of items likely to be needed in substantial quantities over the system’s service life. It also covers major system production contracts, where planners should consider requiring offerors to identify ways to ensure future competitive acquisition of items likely to be bought in large quantities, including proposals for Government rights in technical data and proposals to qualify or develop multiple sources of supply. The section further explains how planners should decide whether to apply these requirements by considering the purpose of the system and the technology needed to meet performance requirements. In practice, this rule is meant to reduce long-term dependence on a single source, improve competition, and lower lifecycle costs, while balancing those goals against mission needs and technical realities. It also tells contracting officers how to use these proposals in source selection or, in noncompetitive awards, as negotiation objectives.

Additional requirements for acquisitions involving consolidation, bundling, or substantial bundling.

Additional requirements for telecommuting.

FAR 7.108 addresses how agencies may treat telecommuting in solicitations and source selection. It implements the statutory policy in 41 U.S.C. 3306(f) that agencies should generally not discourage contractors from allowing employees to telecommute when performing Government contracts. The section covers two related topics: when a contracting officer may prohibit telecommuting in a solicitation, and when an agency may evaluate an offer less favorably because it includes telecommuting. In both cases, the rule requires a specific, written determination by the contracting officer that the agency’s requirements—including security requirements—cannot be met, or would be adversely impacted, if telecommuting is allowed. It also requires the solicitation to clearly state either the prohibition or the evaluation approach. In practice, this means telecommuting is the default position unless the agency can justify a restriction based on mission or security needs, and that justification must be documented before the solicitation is issued.