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FAR and DFARS › FAR Part 4: Administrative and Information Matters › Subpart 4.5

FAR 4.502 Policy.

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 states that the Federal Government should use electronic commerce whenever practical or cost-effective, and that paper-related terms do not limit electronic transactions. It also requires agencies to ensure their electronic commerce systems are implemented uniformly, facilitate access for small businesses, and meet security and interoperability standards.

Applies to: Federal agencies and contracting officers conducting contract actions

What it requires

  • Use electronic commerce whenever practicable or cost-effective.
  • Ensure agency electronic commerce systems are implemented uniformly to the maximum extent practicable.
  • Ensure agency electronic commerce systems facilitate access for small business concerns and certain other small business categories.
  • Ensure agency systems can authenticate and keep information confidential before using electronic commerce.

Key terms: electronic commerce · contracting officers · small business concerns · Governmentwide point of entry · electronic signatures

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The Federal Government shall use electronic commerce whenever practicable or cost-effective. The use of terms commonly associated with paper transactions (e.g., “copy,” “document,” “page,” “printed,” “sealed envelope,” and “stamped”) shall not be interpreted to restrict the use of electronic commerce. Contracting officers may supplement electronic transactions by using other media to meet the requirements of any contract action governed by the FAR (e.g., transmit hard copy of drawings).

(b) Agencies may exercise broad discretion in selecting the hardware and software that will be used in conducting electronic commerce. However, as required by 41 U.S.C. 2301, the head of each agency, after consulting with the Administrator of OFPP, shall ensure that systems, technologies, procedures, and processes used by the agency to conduct electronic commerce—

(1) Are implemented uniformly throughout the agency, to the maximum extent practicable;

(2) Are implemented only after considering the full or partial use of existing infrastructures;

(3) Facilitate access to Government acquisition opportunities by small business concerns, small disadvantaged business concerns, women-owned, veteran-owned, HUBZone, and service-disabled veteran-owned small business concerns;

(4) Include a single means of providing widespread public notice of acquisition opportunities through the Governmentwide point of entry and a means of responding to notices or solicitations electronically; and

(5) Comply with nationally and internationally recognized standards that broaden interoperability and ease the electronic interchange of information, such as standards established by the National Institute of Standards and Technology.

(c) Before using electronic commerce, the agency head shall ensure that the agency systems are capable of ensuring authentication and confidentiality commensurate with the risk and magnitude of the harm from loss, misuse, or unauthorized access to or modification of the information.

(d) Agencies may accept electronic signatures and records in connection with Government contracts.

← 4.501 [Reserved] · 4.600 Scope of subpart. →

Rule changes for FAR Part 4

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 4.502 Policy · SpendQuery