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Don Mansfield

FAR Interpretation Exercise

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Test your skills...

Scenario: A contracting officer in an outlying area (as defined by FAR 2.101) has a requirement for supplies to be used in support of a contingency operation (as determined by the head of the agency). The supplies are to be delivered to an outlying area. The value of the acquisition is expected to be $500,000.

1. According to the FAR, is the acquisition below the simplified acquisition threshold?

2. According to the FAR, is the acquisition automatically reserved exclusively for small business concerns?

Provide citations in the format described at FAR 1.105-2( c )(3) for full credit. Have fun.

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1. Yes. Paragraph (2) of the definition of ?Simplified Acquisition Threshold? at FAR 2.101 states that the SAT is $1M for any contract to be awarded and performed, or purchase to be made, outside the United States.

2. No. Although FAR 19.000(b ) states that Part 19 is applicable in the United States and its outlying areas, the policy for automatically reserving acquisitions exclusively for small business participation at FAR 19.502-2(a) specifically excludes paragraph (2) of the Simplified Acquisition Threshold found at FAR 2.101.

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Let's not forget the definition of "United States" in FAR 2.101, to connect the last dot to the $1M SAT.

Looks like Steve won the luggage!

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