Federal Acquisition Regulations

Federal Acquisition Regulations

Federal acquisition regulation is put in place to govern the purchase of goods and services by the United States federal government with proper management and usage of funds. Monitors how the government procures contracts. The Federal Acquisition Regulation is put in place to help foster a good relationship between the federal government and all its business acquisitions. Federal Acquisition regulations provide legal covers to all the businesses the government is currently involved in, or without these rules, many of these businesses are prone to discriminatory practices (Sitzabee, W., & Jernigan, M.,2013). It also keeps the company secure and ensures proper working conditions and ensures the privacy whereby the business is protected from the outside world,  and whatever the business is engaged in that rival businesses may use to cripple them are protected by FAR.

FAR helps the federal government regulate the businesses it acquires. FAR helps the government plan for the proper utilization of resources and expenditures. Without FAR, the economy will deteriorate whereby the market will be flooded by cheap and counterfeit goods and services,  reducing the quality of goods and services, therefore forcing the government to regulate the economy, which will not be favorable to the citizens. Small businesses will be, in turn, be affected, and government contracts will be terminated, and in the long run, business failure (Johnson, T. R., 2013).

The federal acquisition system helps prevent inflation in that consumer costs, quality of the goods and services are regulated, and it also ensures that goods and services are provided to consumers on time. If FAR is not adhered to, the costs of goods will be high, therefore increasing the living standards the customer needs will not be met (Goldsman, L. P., 1998). The federal government issues contracts and acquires businesses and helps them grow and achieve their maximum potential. Companies that do not adhere to FAR ultimately fail due to poor business practices and are often closed down by the government.

REFERENCES

Johnson, T. R., Feng, P., Sitzabee, W., & Jernigan, M. (2013). Federal acquisition regulation applied to alliancing contract practices. Journal of construction engineering and management, 139(5), 480-487.

Worthington, M. M., & Goldsman, L. P. (1998). Contracting with the federal government (p. 150). New York: Wiley.