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Any company that wants to work continuously in this field should know there are dozens of statutes that control its behavior.

FAR compliance policies stand for the Federal Acquisition Regulation (or FAR), which serves as the guidebook government contractors use.


The FAR suggests an internal control system and training program that's related to the code of business ethics and conduct that should do the following:

  • Be appropriate for the size of the involvement in government contracting and the organization's size

  • Allow disclosure that's timely for improper conduct to the client

  • Make sure that corrective measures are followed and in place when needed.


Government contracts that go over $5,000,000 within 120 days have more defined guidelines on the language that should be used in the contracts. Once that language is in the contract, it's up to the organization to make sure the terms and conditions are carried out


Although they're not often thought of in this way, government contractors are the sector of the economy that is the most heavily regulated. It's smart for companies in this area to take formal compliance training to make sure they're on the correct side of the law. They should also maintain and update reports, codes, and logs.


Many times they'll need to publish not only the Codes of Conduct and Business Ethics and Disclosure Policies, but educate their employees when it comes to compliance. This means they should positively engage all employees in matters of compliance and report potential problems or suspected misconduct. The context of the rules needs to be complied with in order to comply. A helpful starting point is the FAR, which applies to the contracting community and the government itself. It sets the rules for the acquisition process that executive agencies in the federal government acquire services and goods with appropriated funds.


There are three phases in the process, which include acquisition planning and need recognition, contract administration, and contract formation. The government uses an acquisition system to make sure they satisfy their customers' needs when it comes to quality, timeliness, and cost. They also reduce administrative operating costs and allow the government to perform business with fairness, openness, and integrity. The government contractor should recognize that the agency is using the FAR and respond in ways that are recognized by the FAR to the agency.

The other type of knowledge for government contractors is related to criminal regulations and laws that go into being a contractor. They relate to corruption, espionage, and fraud, and many are found in the Defense Federal Acquisition Regulation Supplement.

If you need help with far compliance policies, book on our Service Page!

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