FAR Part 34: Major System Acquisition

In plain English

FAR Part 34 provides acquisition policies and procedures for major systems, including the use of Earned Value Management Systems (EVMS) for major acquisitions. It emphasizes competition, innovation, and effective management throughout the acquisition lifecycle. Contractors involved in major system acquisitions must understand these requirements to comply with solicitation and contract terms.

Key rules

• Agencies must promote innovation and full and open competition in major system concept development by expressing needs in terms of mission objectives, not specific systems. (34.002)
• The program manager must develop a written acquisition strategy that serves as the acquisition plan for the major system acquisition. (34.004)
• The program manager must sustain effective competition between alternative system concepts and sources as long as it is economically beneficial and practicable. (34.005-1)
• For concept exploration contracts, follow-on contracts should be awarded as long as the concept remains promising, progress is acceptable, and it is economically practicable. (34.005-3)
• Full production contracts may be awarded only after the agency head reaffirms the mission need and grants approval to proceed. (34.005-6)
• An Earned Value Management System (EVMS) is required for major acquisitions for development, and offerors without a compliant EVMS cannot be eliminated from consideration but must submit a compliance plan. (34.201)
• When an EVMS is required, the Government will conduct an Integrated Baseline Review (IBR) to verify technical content and realism of performance budgets, resources, and schedules. (34.202)
• The contracting officer must insert the clause at FAR 52.234-4, Earned Value Management System, in solicitations and contracts that require an EVMS. (34.203)

Who does what

In practice

• If you are bidding on a major system acquisition, ensure your proposal reflects an understanding of the mission need and includes a compliant EVMS plan if required.
• During performance, you must submit monthly EVMS reports and participate in Integrated Baseline Reviews to verify your performance baseline.
• For concept exploration or demonstration contracts, be aware that follow-on contracts may be awarded based on performance and economic practicability.

Common pitfalls

• Assuming that not having a compliant EVMS will disqualify you; the regulation states offerors shall not be eliminated for this reason, but you must submit a compliance plan.
• Overlooking the requirement to refer Title III testing and qualification requests to the contracting officer instead of handling them directly.
• Failing to develop a written acquisition strategy that qualifies as the acquisition plan, as required for major system acquisitions.

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.