FAR 7.5—Subpart 7.5

Scope of subpart.

FAR 7.500 is the scope statement for Subpart 7.5, and it sets the basic policy objective for the entire subpart: to make sure inherently governmental functions are not performed by contractors. In practical terms, this section does not itself define every prohibited activity or lay out the full decision process; instead, it tells readers what the subpart is for and frames the later rules that identify, review, and manage work that must remain under government control. The topic covered here is narrow but important: the boundary between work that may be contracted out and work that must be performed by federal employees because it is so closely tied to sovereign authority, public accountability, or core governmental judgment. For contracting officers, program officials, and acquisition planners, the significance is that they must treat this subpart as a guardrail during acquisition planning, requirement development, and contract administration. For contractors, it signals that some tasks may be outside the permissible scope of contract performance even if they are technically feasible or operationally convenient. In short, this section establishes the policy reason for the subpart and the practical need to keep inherently governmental functions in government hands.

[Reserved]

Applicability.

FAR 7.502 explains the scope of the service-contracting policies in this subpart. It says these requirements apply to all contracts for services, which means agencies and contracting personnel must use the subpart whenever they are acquiring services under a contract vehicle. It also identifies important exclusions: services obtained through personnel appointments, advisory committees, and personal services contracts issued under statutory authority are not covered. In practice, this section tells contracting officials when the subpart’s rules must be followed and when a different legal framework governs the relationship. Its purpose is to prevent misapplication of service-contracting rules to arrangements that are handled by separate personnel, advisory, or statutory authorities.

Policy.

FAR 7.503 states the core policy on inherently governmental functions: agencies may not use contracts to perform work that must be reserved to government officials and employees. It explains that agency judgments about whether a function is inherently governmental can be reviewed and changed by appropriate Office of Management and Budget officials, which underscores that this is a governmentwide control issue, not just an agency preference. The section then gives a nonexclusive list of functions that are inherently governmental or must be treated that way, including criminal investigations, prosecutions and adjudications, military command, foreign policy, agency policy decisions, budget priorities, direction of federal employees, intelligence operations, hiring decisions, approval of position descriptions and performance standards, property disposal decisions, procurement decisions, FOIA release decisions, security clearance hearings, licensing actions, budget policy, collection and control of public funds, treasury account control, administration of public trusts, and drafting congressional or audit responses. It also lists functions generally not inherently governmental, such as budget support, reorganization planning, policy analysis support, regulation development support, acquisition planning support, technical proposal evaluation support, statement-of-work support, and FOIA support, while warning that these services can become problematic depending on how they are structured and administered. In practice, this section is meant to help agencies draw the line between permissible contractor support and prohibited contractor control, especially in sensitive areas where contractors could influence official judgment or exercise governmental authority. For contractors, it signals that even when a service is allowed, the contract must be carefully written and managed so the contractor does not make decisions reserved to the Government.