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  • Question

    I know that service contracts, contract clauses, BPAs etc are FAR that we follow. How am I going to challenge this since the supervisor of the installation told her this incorrect information? I need help soon. Thank you. Vr, Brenda C. Ferareza Jr Contracting Officer Phone: 904-542-8837 Email: brenda.ferareza@navy.mil


    Answer

    FAR 1.104 states: "The FAR applies to all acquisitions as defined in Part 2 of the FAR..." Part 2 of the FAR in turn defines "acquisition" as "the acquiring by contract with appropriated funds of supplies or services..." Clearly, Non-Appropriated Funds (NAF) contracting does not use appropriated funds, so the FAR is not required by law for NAF contracting. However, there is nothing that explicitly prohibits application of one or more parts of the FAR to NAF contracts if it is determined that it makes good business sense to do so.

    For acquisitions made from non-appropriated funds, the Senior Procurement Executive of each department or agency typically determines the rules and procedures that apply. For example, the U.S. Dept. of Education FAR supplement states "For non-appropriated fund contracts, the FAR and EDAR will be followed to the maximum extent practicable, excluding provisions determined by the contracting officer, with the advice of counsel, not to apply to contracts funded with non-appropriated funds." In other words, you would need to check with Navy regulations in your case to determine what applies to NAF contracting in the Navy.

    The Navy may have its own regulation that guides Navy NAF procurements.

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