FAR 7.101—Definitions.
Plain-English Summary
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.
Key Rules
Acquisition streamlining
Acquisition streamlining means efforts that make the design, development, or production of quality systems more efficient and effective. It specifically includes limiting solicitations and contracts to only necessary, cost-effective requirements and placing those requirements at the most appropriate point in the acquisition cycle.
Life-cycle cost
Life-cycle cost is the total cost to the Government of acquiring, operating, supporting, and, when applicable, disposing of the items being acquired. This definition requires planners to look beyond the initial purchase price and consider the full cost of ownership.
Order definition
An order under this subpart includes an order placed against a Federal Supply Schedule contract or against a task-order or delivery-order contract awarded by another agency, such as a GWAC or multi-agency contract. This matters because these actions are treated as orders, not standalone contracts, for purposes of acquisition planning under this subpart.
Planner role
The planner is the designated person or office responsible for developing and maintaining a written acquisition plan, or for performing the planning function when a written plan is not required. The definition makes clear that planning responsibility must be assigned, even when the acquisition does not require a formal written document.
Responsibilities
Contracting Officer
Use these definitions when determining whether an acquisition requires planning, how to frame requirements, whether an action is an order under an existing vehicle, and how to evaluate costs over the full life cycle. The contracting officer must ensure the right planning approach is used and that responsibility for planning is clearly assigned.
Program Office / Requiring Activity
Work with the planner and contracting officer to identify only necessary requirements, support streamlining efforts, and provide information needed to assess life-cycle cost. The requiring activity must help ensure the acquisition plan reflects actual mission needs and realistic cost considerations.
Planner
Develop and maintain the written acquisition plan when required, or perform the planning function when a written plan is not required. The planner must coordinate acquisition planning activities and ensure the plan or planning process addresses the acquisition’s scope, timing, and cost considerations.
Agency
Designate the person or office that will serve as the planner and establish acquisition planning processes consistent with these definitions. The agency must ensure its internal procedures support streamlined acquisitions and proper consideration of life-cycle cost.
Practical Implications
These definitions affect how agencies write requirements: acquisition teams should avoid loading solicitations with unnecessary features or specifications that do not add value.
Life-cycle cost analysis can change source selection and acquisition strategy, because the cheapest upfront option may be more expensive to operate, support, or dispose of over time.
Teams must correctly identify whether an action is an order under an existing contract vehicle, since that classification affects planning, competition procedures, and administrative handling.
A common pitfall is treating planning as a paperwork exercise rather than a decision-making process; even when no written plan is required, someone still has to do the planning work.
Another frequent mistake is focusing only on purchase price and ignoring sustainment, maintenance, training, logistics, and disposal costs, which can lead to poor acquisition outcomes.
Official Regulatory Text
As used in this subpart- Acquisition streamlining means any effort that results in more efficient and effective use of resources to design and develop, or produce quality systems. This includes ensuring that only necessary and cost-effective requirements are included, at the most appropriate time in the acquisition cycle, in solicitations and resulting contracts for the design, development, and production of new systems, or for modifications to existing systems that involve redesign of systems or subsystems. Life-cycle cost means the total cost to the Government of acquiring, operating, supporting, and (if applicable) disposing of the items being acquired. Order means an order placed under a- (1) Federal Supply Schedule contract; or (2) Task-order contract or delivery-order contract awarded by another agency, ( i.e., Governmentwide acquisition contract or multi-agency contract). Planner means the designated person or office responsible for developing and maintaining a written plan, or for the planning function in those acquisitions not requiring a written plan.