FAR Part 7: Acquisition Planning

In plain English

FAR Part 7 covers acquisition planning, including developing plans, deciding between commercial and Government resources, lease vs. purchase, and ensuring inherently governmental functions are not performed by contractors. It matters because it sets the rules for how agencies plan acquisitions, which affects solicitation requirements, competition, and small business participation.

Key rules

• Agencies must perform acquisition planning and market research for all acquisitions to promote commercial products, full and open competition, and efficiency. (7.102)
• Acquisition planning should begin as soon as the need is identified, preferably well in advance of the fiscal year, and involve a team of contracting, small business, fiscal, legal, and technical personnel. (7.104)
• Written acquisition plans must address technical, business, management, and other significant considerations, and identify decision milestones. (7.105)
• For consolidations over $2 million, the senior procurement executive must make a written determination that the consolidation is necessary and justified after market research and consideration of alternatives. (7.107-2)
• For bundling, the agency must make a written determination that the bundling is necessary and justified by measurably substantial benefits compared to separate smaller contracts. (7.107-3)
• Substantial bundling thresholds are $8 million for DoD, $6 million for NASA, GSA, and DOE, and $2.5 million for all other agencies, based on cumulative estimated value including options. (7.107-4)
• The contracting officer must notify current small business contractors at least 30 days before issuing a solicitation for a bundled requirement, providing SBA procurement center representative contact information. (7.107-5)
• Agencies shall not discourage telecommuting by contractors unless the contracting officer determines in writing that agency requirements, including security, cannot be met. (7.108)

Who does what

In practice

• When bidding, check if the solicitation includes provisions related to acquisition planning, such as economic purchase quantity or telecommuting prohibitions.
• If you are a small business, be aware that for bundled requirements, you may receive a notification 30 days before the solicitation, giving you time to prepare or team.
• For acquisitions involving consolidation or bundling, the agency must justify the decision, which may affect small business participation opportunities.
• If you plan to use telecommuting, verify that the solicitation does not prohibit it; if it does, the agency must have documented why.

Common pitfalls

• Assuming that a consolidation or bundling is automatically justified; the agency must make a written determination based on market research and measurable benefits.
• Ignoring the 30-day notification requirement for bundled requirements; small businesses should watch for this notice to consider teaming or protesting.
• Overlooking the economic purchase quantity provision; offerors can provide input that may influence the Government's quantity decisions.
• Believing that telecommuting is always allowed; agencies may prohibit it if they determine requirements cannot be met, but must document the basis.

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.