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FAR and DFARS › FAR Part 7: Acquisition Planning › Subpart 7.3

FAR 7.302 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 the Government's policy that inherently governmental activities must be performed by Government personnel, while commercial activities should be subject to competition. It also lists specific obligations for agencies, such as not using contractors for inherently governmental work and conducting public-private competitions under the Circular. For contractors, this means certain work is off-limits and competitions follow specific rules.

Applies to: Agencies and contracting officers involved in public-private competitions under OMB Circular A-76

What it requires

  • Not use contractors to perform inherently governmental activities
  • Conduct public-private competitions in accordance with the Circular and applicable regulations
  • Give appropriate consideration relative to cost when making performance decisions between agency and contractor performance
  • Consider the Agency Tender Official an interested party for filing a protest at the Government Accountability Office

Key terms: inherently governmental activities · commercial activities · public-private competitions · Agency Tender Official · sealed bidding

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

The text

(a) The Circular provides that it is the policy of the Government to—

(1) Perform inherently governmental activities with Government personnel; and

(2) Subject commercial activities to the forces of competition.

(b) As provided in the Circular, agencies shall—

(1) Not use contractors to perform inherently governmental activities;

(2) Conduct public-private competitions in accordance with the provisions of the Circular and, as applicable, these regulations;

(3) Give appropriate consideration relative to cost when making performance decisions between agency and contractor performance in public-private competitions;

(4) Consider the Agency Tender Official an interested party in accordance with 31 U.S.C. 3551 to 3553 for purposes of filing a protest at the Government Accountability Office; and

(5) Hear contests in accordance with OMB Circular A-76, Attachment B, Paragraph F.

(c) When using sealed bidding in public-private competitions under OMB Circular A-76, contracting officers shall not hold discussions to correct deficiencies.

← 7.301 Definitions. · 7.303-7.304 [Reserved] →

Rule changes for FAR Part 7

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

FAR 7.302 Policy · SpendQuery