FAR Part 2: Definitions of Words and Terms

In plain English

FAR Part 2 defines words and terms that are used throughout the Federal Acquisition Regulation (FAR). It ensures consistent interpretation of these terms in solicitations and contracts, which is critical for contractors to understand their rights and obligations. The part also provides cross-references to other definitions and requires incorporation of these definitions by reference.

Key rules

• FAR Part 2 defines frequently used words and terms and provides cross-references to other FAR definitions. (2.000)
• Definitions in Part 2 apply throughout the FAR unless the context requires a different meaning or another FAR part provides a different definition. (2.101)
• If a term is defined differently in another FAR part, the definition in Part 2 includes a cross-reference and the other part's definition applies when the term is used in that part. (2.101)
• The clause at 52.202-1, Definitions, must be inserted in solicitations and contracts that exceed the simplified acquisition threshold. (2.201)

Who does what

In practice

• When you bid or perform, you should refer to FAR Part 2 to understand the meaning of terms used in the solicitation and contract.
• If your contract exceeds the simplified acquisition threshold, the Definitions clause (52.202-1) will be included, making these definitions part of your contract.
• Be aware that some terms may have different meanings in specific FAR parts, so always check for cross-references.

Common pitfalls

• Assuming that a term defined in FAR Part 2 always has the same meaning; it may be defined differently in another FAR part that applies to your contract.
• Overlooking the requirement that the Definitions clause is only mandatory for contracts above the simplified acquisition threshold; for lower-value contracts, it may not be included.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.