Federal Acquisition Regulation; Reflection

QUESTION

Overview:
Part of the role of the FAR is to ensure taxpayer funds are properly managed in a way that protects the collective buying power of the American people.

Instructions
Write a 2–3 page paper in which you:

Analyze the FAR, and conclude whether or not the FAR overall offers adequate protection of the collective buying power of the American people. Provide an example supporting your position.
Evaluate which branch of government is the proper branch to effectuate change that would provide checks and balances for the purchase of goods and services for the U.S. government. Provide a rationale for your answer.
Use two sources to support your writing. Choose sources that are credible, relevant, and appropriate. Most references will likely come from the sources listed in the preparation section. For help with research, writing, and citation, access the library or review library guides.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

Evaluate the economic considerations of the Federal Acquisition Regulation (FAR).

ANSWER

Reflecting on the Federal Acquisition Regulation (FAR)

As a set of rules governing how the U.S. government acquires goods and services, FAR seeks to ensure that the government gets value for its money and reciprocates by providing adequate protection for the collective buying power of the American people. According to Lunder, Christensen, and Halchin (2015), members, committees, and staff may find themselves conducting a performance oversight of the executive agencies in procuring goods and services and especially their compliance with FAR. Or they can consider or draft legislation that could prompt amendments to promote transparency, save money, or facilitate furthering of other public policies (Lunder, Christensen, and Halchin, 2015).

As described in FAR’s overarching vision of the acquisition system, the performance standards are to satisfy the customer through cost, quality and timeliness. Again, FAR seeks to minimize operating costs incurred in the administrative processes, complete business in integrity, fairness, and openness, and fulfil the objectives set out in the public policy. There are debates that the FAR may or may not be offering adequate protection for the American people’s collective buying power:

Strengths and Weaknesses of VAR

The FAR promotes fair and open competition by allowing contract awarding through bidding. It also provides accountability and oversight by ensuring government agencies follow strict procedures in the contract awarding process. Such a process protects against fraud and corruption while ensuring that vendors disclose any conflicts of interest regarding a government contract. Lastly, the FAR encourages continuous improvement through constant updating and revision for technological changes, government policy, and business practices.

Weaknesses are shortcomings like excessive regulation due to its complex and burdensome nature. Compliance issues are expensive and time-consuming for small businesses with limited resources for such devotion. Additionally, there is limited competition, which blurs the requirement that contracts be rewarded through a competitive bidding process. Hence, prices will be driven up, and the quality of goods will reduce. Top of Form

In summary, proponents argue that the FAR offers robust protections for the collective buying power of the American people. They argue that through its requirements that all government contracts be awarded on a competitive basis and that the best value be obtained for the government, it is adequate protection. Still, the FAR has strict standards on contract performance, which ensures contractors meet their obligations and deliver quality products and services. On the other hand, critics argue that the FAR is not doing enough in the procurement process as there is significant fraud and abuse. Again, some state that the FAR is overly complex and bureaucratic, which often creates barriers for small businesses. Below are the strengths and weaknesses of FAR.

Position

The FAR may not offer adequate protection for the collective buying power of the American people. For one, the Buy American statute does not have provisions for foreign purchases, i.e., it does not prohibit the purchase of foreign products. Instead, it is subject to in flexibility that can affect response to the changing markets. Innovation is also inhibited such that procurement favors established contractors over new entrants with innovation potential.

An example of this limitation is the Pentagon’s Joint Enterprise Defense Infrastructure (JEDI) cloud computing contract. The JEDI contract ended in court because, seemingly, it had been a case of bias. Amazon challenged this contract award in court, arguing that the procurement process was biased in favor of Microsoft (Bartz and Shephardson, 2021). In 2020, the contract was temporarily halted by a federal judge, citing “significant” errors in the procurement process. After a long battle in court, the contract was cancelled and granted to Amazon and other small and private companies. Through this case, one can see a loophole that justifies that protection of the collective buying power of the American people is at stake. If developed companies continue benefitting from government contracts with little consideration for small businesses, then the FAR’s competition, fairness, and inclusivity concepts will be frowned upon. This case highlights a situation of having visionary requirements, which is used as a label, unlike a motivation for innovation. Moreover, the incident highlights the challenges of ensuring fairness and transparency in government procurement, despite the strict guidelines of the FAR.

The legislative branch of the government has powers over the economy by making all laws, declaring war, regulating interstate and foreign commerce, and controlling taxing spending policies. Again, this branch may not be required to comply with the FAR but only follow it, although it is also not within the limit to amend it on its own. However, the legislative can create laws and regulations that govern government procurement, ensuring that the government gets value for its money while protecting the collective buying power of the American people (Patrignani, 2014). The legislative branch can provide oversight and accountability for the procurement process, which can help to prevent fraud, waste, and abuse. Therefore, this branch is well-suited to effectuate change that would provide checks and balances for the purchase of goods and services for the U.S. government.

References

Bartz, D. & Shephardson, D. (2021). Pentagon Hits Reset On Trump’s $10 Bln Cloud Deal, Welcoming New Players. Reuters. https://www.reuters.com/technology/pentagon-scraps-jedi-award-microsoft-will-rebid-2021-07-06/

Lunder, E. K., Christensen, M. D., & Halchin, L. E. (2015). The Federal Acquisition Regulation (FAR): Answers to Frequently Asked Questions. Library Of Congress Washington Dc.

Patrignani, J. O. (2014). Impact of Federal Acquisition Regulation Change On Contractor Misconduct (Doctoral dissertation, Walden University). https://scholarworks.waldenu.edu/dissertations/161/