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Navigating the Procurement Process: What Federal Contractors Need to Know About FAR and DFARS Compliance

By: Dave Wendel

For organizations pursuing work in the federal space, understanding the procurement process isn’t just helpful—it’s essential. Federal acquisition is governed by a robust regulatory framework, and success in this domain demands more than technical capability or competitive pricing. It requires strict compliance with the rules that guide how agencies acquire goods and services.

Two critical regulatory cornerstones—the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS)—establish the standards federal contractors must meet. These frameworks define not only how contracts are awarded, but also how they’re executed, monitored, and closed out.

Understanding FAR: The Federal Government’s Rulebook

The FAR is the primary acquisition regulation used across executive agencies. It sets out the procedures that ensure fairness, competition, transparency, and stewardship of taxpayer dollars throughout the procurement lifecycle. Whether your company is providing cybersecurity services, IT infrastructure, or technical consulting, compliance with FAR clauses is non-negotiable.

For contractors, FAR compliance means aligning internal processes—everything from timekeeping to invoicing—with clearly defined expectations. These standards are designed to ensure the government receives the best value while maintaining integrity and accountability in public-sector contracting.

What Makes DFARS Different?

For companies working with the Department of Defense (DoD), the DFARS adds an additional layer. It supplements the FAR with defense-specific requirements, particularly in areas like cybersecurity, supply chain risk management, and protection of controlled unclassified information (CUI).

One standout requirement is DFARS clause 252.204-7012, which mandates the safeguarding of CUI and requires reporting of cyber incidents within a strict 72-hour window. Contractors must also demonstrate implementation of NIST SP 800-171 standards—making cybersecurity readiness a central part of compliance, not an afterthought.

What Compliance Looks Like in Practice To be eligible for federal contracts, organizations must first complete the basics: registering in SAM.gov, obtaining a CAGE Code, and confirming eligibility through required certifications. But once a contract is awarded, compliance becomes far more operational.

Contractors must implement written codes of ethics and conduct, supported by employee training and internal controls that deter fraud, waste, and abuse. Labor compliance, adherence to safety standards, and fair hiring practices are also enforceable through the FAR.

In the defense space, maintaining secure supply chains and protecting technical data are equally critical. Prime contractors are increasingly expected to validate the compliance of their subcontractors as part of DFARS obligations—particularly when national security is at stake.

Why Compliance Is a Strategic Imperative

Falling short of FAR or DFARS standards can result in serious consequences, from lost contracts and fines to suspension or debarment. It also puts your organization’s reputation—and future business—at risk.

Audits by the Defense Contract Audit Agency (DCAA) and other federal oversight bodies are not uncommon, and they scrutinize both financial and operational performance. Contractors must be able to demonstrate that their systems, practices, and people are aligned with regulatory expectations.

Building a Foundation for Federal Success

At Invictus, we understand the complexity of working in the federal space—and the critical importance of compliance at every level. Whether supporting defense missions, securing national infrastructure, or providing technical expertise, we believe that success begins with a deep understanding of the frameworks that govern our work.

By investing in rigorous compliance programs, integrating cybersecurity protocols, and maintaining ethical business operations, federal contractors can ensure not only eligibility but also long-term credibility and mission alignment.

In federal contracting, compliance is more than a requirement. It’s a reflection of operational readiness, trust, and commitment to national objectives.