Learning more about FAR regulations – reporting from US!

As a trusted supplier in the defense industry, we know that defence regulations are of the highest importance, thus we attend training to learn more. This week I am attending a FAR/DFARS seminar in Orlando, follow our blog this week for news and tips from the training.
Almost 180 government contracting professionals attending from 40 different states and six countries including the Bahamas, Belgium, Guam, Norway, Saudi Arabia, and the United Kingdom. In the there are contracting officers, accountants, CFOs, CEOs, general counsel; everyone from new contracting professionals to 40-year veterans of FPS training conferences.

Why is it important to educate more about these regulations?

Because The Federal Acquisition Regulation (FAR) directly affects over $1 trillion in federal and state acquisitions each year. This critically important regulation is complex and continually changing. The last years I have attended several FAR/DFARS events in Europe, the knowledge about these regulations is increasing, however, there is still a need to educate about the differences and not at least the importance of being compliant.

(Instructor Steven Tomanelli kicks off FAR Workshop)

It is a real pleasure to attend a seminar where the skill level and understanding of our everyday opportunities and challenges are at the center of everyone’s attention. The first day of the FAR workshop was led by seminar lawyer and speaker Steven N.Tomanelli with over 20 years of compliance experience.

The favorite paragraph – quite clever as well

We quickly started to examining his favorite paragraph FAR 1.02. A paragraph, which simply points out that it is always allowed to be smart in relation to constructing transactions that are mutually beneficial to all parties, as long as it is legal. Sometimes we can get too wrapped up in finding answers in paragraphs when some paragraphs actually state that they encourage the parties to find good solutions.

We covered the first 15 sections of the FAR and I can tell there was an eager debate concerning Commercial Items in FAR 2.201 and 52.212. One must examine aspects as e.g. the attributes, use, and production of the item in relation to the context it will be used, and that will help determine if it is a Commercial item or not. And finally let us not forget that FAR is applicable to all federal executive agency acquisitions conducted with appropriate funds, so I look forward to what we will learn tomorrow.

Picture of FAR Regulations

When do DFARS regulations apply?

If you are selling to the United States then DFARS regulate all imports to the United States of military goods and services. DFARS impose requirements on United States Government prime contractors and all lower tier subcontractors regarding the import of goods and services, profit margins, application of certain accounting principles, reporting requirements, terms of payment and provision of various representations and warranties.

A previous post about DFARS.

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