FAR and DFARS › FAR Part 37: Service Contracting › Subpart 37.5
FAR 37.503 Agency-head responsibilities.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section lists what the agency head or their designee should ensure when the agency buys services. It matters to contractors because it drives how clearly requirements are defined, how contracts are awarded and administered, and how inherently governmental work is kept in-house.
Applies to: Agency heads or their designees at agencies buying services
Key terms: agency head · designee · requirements for services · performance standards · inherently governmental functions
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
The agency head or designee should ensure that—
(a) Requirements for services are clearly defined and appropriate performance standards are developed so that the agency's requirements can be understood by potential offerors and that performance in accordance with contract terms and conditions will meet the agency's requirements;
(b) Service contracts are awarded and administered in a manner that will provide the customer its supplies and services within budget and in a timely manner;
(c) Specific procedures are in place before contracting for services to ensure that inherently governmental functions are performed by Government personnel; and
(d) Strategies are developed and necessary staff training is initiated to ensure effective implementation of the policies in 37.102.
Sections it refers to
- 37.102 Policy.
← 37.502 Exclusions. · 37.504 Contracting officials' responsibilities. →
Rule changes for FAR Part 37
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 6, 7, 10, 18, 26, 37, and 41 ↗ · proposed 2026-06-23 · comments due 2026-07-23
- Federal Acquisition Regulation: Preventing Organizational Conflicts of Interest in Federal Acquisition ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Sustainable Procurement ↗ · final rule 2024-04-22 · effective 2024-05-22
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.