FAR/DFARS Compliance Engine

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Automated FAR/DFARS compliance monitoring that flags violations, tracks regulatory updates, and protects your federal contract status.

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The Federal Acquisition Regulation is a 2,000+ page regulatory framework governing every aspect of U.S. government contracting — from contractor eligibility and proposal submission requirements to contract clause incorporation, labor standards, cybersecurity obligations, and small business participation goals. The DFARS adds another layer of defense-specific requirements that apply to all Department of Defense procurements.

Non-compliance is not a technicality. It is a disqualifier.

A technically outstanding proposal that fails to include the required Equal Opportunity clause representation, omits a mandatory cybersecurity compliance statement, or uses a non-compliant labor category structure is subject to rejection as technically unacceptable — regardless of the quality of the technical content. A contract that fails to flow down required FAR clauses to subcontractors exposes the prime to liability, cure notices, and potential termination for default.

The Hawary AI FAR/DFARS Compliance Checker eliminates this risk. It systematically reviews every proposal and contract document against applicable FAR/DFARS requirements, categorizes each finding by risk severity, and produces an actionable compliance report before submission.

FAR Part Coverage

FAR Part	Subject	Common Compliance Issues
FAR Part 4	Administrative Matters	SAM.gov registration verification, contractor information accuracy
FAR Part 9	Contractor Qualifications	Responsibility determination, debarment/suspension status, FOCI (foreign ownership)
FAR Part 13	Simplified Acquisition	Threshold compliance for simplified procedures
FAR Part 15	Contracting by Negotiation	Section L/M compliance, proposal format requirements, price/cost analysis support
FAR Part 19	Small Business Programs	Set-aside compliance, subcontracting plan goals, NAICS/size certification accuracy
FAR Part 22	Labor Standards	Davis-Bacon Act applicability (construction), Service Contract Labor Standards (service contracts), Walsh-Healey Act
FAR Part 23	Sustainable Acquisition	Green procurement requirements, energy efficiency, electronic products
FAR Part 24	Privacy Act	PII handling requirements for contracts involving government personnel data
FAR Part 25	Foreign Acquisition	Buy American Act, Trade Agreements Act, domestic content requirements
FAR Part 27	Patents, Data, Copyrights	Data rights, technical data, software licensing
FAR Part 28	Bonds and Insurance	Performance bond requirements, payment bond, insurance minimums
FAR Part 31	Contract Cost Principles	Allowable costs, cost accounting standards, unallowable cost identification
FAR Part 37	Service Contracting	Personal services prohibition, performance-based contracting requirements
FAR Part 42	Contract Administration	COR/COTR relationships, reporting requirements, government property
FAR Part 44	Subcontracting	Consent to subcontract, subcontractor responsibility, flow-down requirements
FAR Part 45	Government Property	Government-furnished property accountability, loss/damage reporting
FAR Part 52	Solicitation Provisions and Contract Clauses	The clause library — prescribes specific clause text requirements

Key FAR 52 Clauses Reviewed

Clause	Subject	When Required
52.202-1	Definitions	All contracts
52.203-3	Gratuities	All contracts over SAT
52.203-11	Certification and Disclosure Regarding Payments	All negotiated contracts over $150K
52.204-3	Taxpayer Identification	All contracts
52.204-7	System for Award Management	All solicitations
52.204-8	Annual Representations and Certifications	All contracts over micro-purchase threshold
52.209-2	Prohibition on Contracting with Inverted Domestic Corporations	All contracts over $1M
52.212-1	Instructions to Offerors — Commercial Items	Commercial item procurements
52.215-1	Instructions to Offerors — Competitive Acquisition	Negotiated procurements
52.219-1	Small Business Program Representations	All contracts
52.219-8	Utilization of Small Business Concerns	Contracts over $750K
52.222-21	Prohibition of Segregated Facilities	All contracts over $10K
52.222-26	Equal Opportunity	All contracts over $10K
52.222-36	Equal Opportunity for Workers with Disabilities	Contracts over $15K
52.222-41	Service Contract Labor Standards	Service contracts over $2,500
52.225-1	Buy American — Supplies	Supply contracts
52.225-13	Restrictions on Certain Foreign Purchases	All contracts
52.227-14	Rights in Data — General	R&D and service contracts
52.232-33	Payment by Electronic Funds Transfer	All contracts
52.233-1	Disputes	All contracts
52.244-6	Subcontracts for Commercial Items	All contracts with subcontracts

DFARS Coverage (DoD Contracts)

DFARS Clause	Subject	Risk Level if Missing
DFARS 252.204-7012	Safeguarding Covered Defense Information — CMMC/cybersecurity requirements	CRITICAL — DoD contracts require CMMC compliance documentation
DFARS 252.225-7001	Buy American and Balance of Payments Program	HIGH — applies to most DoD supply contracts
DFARS 252.225-7009	Restriction on Acquisition of Certain Articles	HIGH — specialty metals, ball bearings, optical fiber restrictions
DFARS 252.227-7013	Rights in Technical Data — Noncommercial Items	HIGH — determines government data rights in technical deliverables
DFARS 252.239-7010	Cloud Computing Services	HIGH — FedRAMP requirements for cloud service delivery
DFARS 252.246-7007	Contractor Counterfeit Electronic Part Detection	MEDIUM — applies to electronics supply contracts

Representations & Certifications Review

In addition to clause review, the Compliance Checker audits all Representations and Certifications (Reps & Certs) in Section K of the solicitation or in the SAM.gov annual reps:

Small Business size certification accuracy under the applicable NAICS code
Socioeconomic status representations (8(a), SDVOSB, WOSB, HUBZone) — checks against certification expiry dates
Ownership and control representations
Debarment and suspension representations
Tax delinquency certifications
Predecessor company representations
Covered telecommunications equipment representations (Section 889 compliance)
Domestic end product certifications (Buy American)

Risk Categories

Every compliance finding is assigned one of four risk levels:

Risk Level	Definition	Required Action
CRITICAL	Missing or non-compliant element that will result in proposal rejection or contract termination if not corrected	Must be corrected before submission — no exceptions
HIGH	Non-compliance that creates significant legal or financial exposure; will likely be flagged by agency reviewers	Should be corrected before submission; document corrective action if deferred
MEDIUM	Compliance gap that creates potential liability but is unlikely to cause immediate rejection	Correct in final review; document risk if deferred
LOW / ADVISORY	Minor deviation or best-practice recommendation that does not create legal exposure	Address in next review cycle; document as known deviation

Output Format: Compliance Audit Report

The Compliance Checker produces a structured audit report with the following sections:

Document Header

Document reviewed (proposal/contract name, version, date)
Contract classification (type, agency, value threshold, business size)
DFARS applicability (Yes/No — if DoD agency)
Audit completion date

Executive Summary

Total findings by risk level (Critical: X, High: X, Medium: X, Low/Advisory: X)
Overall compliance rating: COMPLIANT / SUBSTANTIALLY COMPLIANT / NON-COMPLIANT
Recommended action: Submit as-is / Correct before submission / Major revision required

Findings Table

Finding #	FAR/DFARS Reference	Requirement	Status	Risk Level	Corrective Action	Deadline
001	FAR 52.204-7	SAM.gov registration active at time of submission	COMPLIANT	—	None required	—
002	FAR 52.222-41	Service Contract Labor Standards wage determination included	NON-COMPLIANT	CRITICAL	Include current wage determination for Place of Performance	Before submission
003	DFARS 252.204-7012	CMMC level documentation provided	PARTIAL	HIGH	Complete CMMC attestation for Level 2	Before submission
004	FAR 52.219-8	Subcontracting plan goals meet SDB/WOSB minimums	COMPLIANT	—	None required	—

Detailed Finding Narratives

For each Critical and High finding, a full narrative explaining the regulatory basis, the specific deficiency, the risk if uncorrected, and step-by-step corrective action instructions.

Cleared Clauses List

All reviewed requirements that are fully compliant — provides positive confirmation of what is working correctly, not just what needs fixing.

Review Process

Step 1 — Document Intake & Contract Classification

The Compliance Checker first classifies the procurement to determine which FAR/DFARS parts apply:

Contract Type: FFP, T&M, CPFF, IDIQ, BPA — different cost/price provisions apply
Agency Type: Civilian vs. DoD (triggers DFARS applicability)
Contract Value: Simplified acquisition threshold ($250,000), SAT, and over-$10M thresholds trigger different clause sets
Business Size: Small business vs. other-than-small triggers different representation requirements
Socioeconomic Status: 8(a), SDVOSB, WOSB, HUBZone programs have program-specific compliance requirements
Industry Type: Construction, IT, professional services, and commercial items each have distinct clause requirements

Step 2 — Required Clauses Checklist Generation

Based on the classification, the engine generates a complete list of required FAR/DFARS clauses for this specific contract type. This is not a generic list — it is tailored to the specific procurement parameters.

Step 3 — Document Review

The proposal or contract document is reviewed clause-by-clause, representation-by-representation. Each required element is checked against its presence, completeness, and accuracy in the document.

Step 4 — Risk Categorization

Each finding is assigned a risk level (see Risk Categories below) and a remediation recommendation.

Step 5 — Report Generation

A structured compliance report is produced with all findings, risk levels, and specific corrective actions.

What The Checker Reviews

FAR Part Coverage

FAR Part	Subject	Common Compliance Issues
FAR Part 4	Administrative Matters	SAM.gov registration verification, contractor information accuracy
FAR Part 9	Contractor Qualifications	Responsibility determination, debarment/suspension status, FOCI (foreign ownership)
FAR Part 13	Simplified Acquisition	Threshold compliance for simplified procedures
FAR Part 15	Contracting by Negotiation	Section L/M compliance, proposal format requirements, price/cost analysis support
FAR Part 19	Small Business Programs	Set-aside compliance, subcontracting plan goals, NAICS/size certification accuracy
FAR Part 22	Labor Standards	Davis-Bacon Act applicability (construction), Service Contract Labor Standards (service contracts), Walsh-Healey Act
FAR Part 23	Sustainable Acquisition	Green procurement requirements, energy efficiency, electronic products
FAR Part 24	Privacy Act	PII handling requirements for contracts involving government personnel data
FAR Part 25	Foreign Acquisition	Buy American Act, Trade Agreements Act, domestic content requirements
FAR Part 27	Patents, Data, Copyrights	Data rights, technical data, software licensing
FAR Part 28	Bonds and Insurance	Performance bond requirements, payment bond, insurance minimums
FAR Part 31	Contract Cost Principles	Allowable costs, cost accounting standards, unallowable cost identification
FAR Part 37	Service Contracting	Personal services prohibition, performance-based contracting requirements
FAR Part 42	Contract Administration	COR/COTR relationships, reporting requirements, government property
FAR Part 44	Subcontracting	Consent to subcontract, subcontractor responsibility, flow-down requirements
FAR Part 45	Government Property	Government-furnished property accountability, loss/damage reporting
FAR Part 52	Solicitation Provisions and Contract Clauses	The clause library — prescribes specific clause text requirements

Key FAR 52 Clauses Reviewed

Clause	Subject	When Required
52.202-1	Definitions	All contracts
52.203-3	Gratuities	All contracts over SAT
52.203-11	Certification and Disclosure Regarding Payments	All negotiated contracts over $150K
52.204-3	Taxpayer Identification	All contracts
52.204-7	System for Award Management	All solicitations
52.204-8	Annual Representations and Certifications	All contracts over micro-purchase threshold
52.209-2	Prohibition on Contracting with Inverted Domestic Corporations	All contracts over $1M
52.212-1	Instructions to Offerors — Commercial Items	Commercial item procurements
52.215-1	Instructions to Offerors — Competitive Acquisition	Negotiated procurements
52.219-1	Small Business Program Representations	All contracts
52.219-8	Utilization of Small Business Concerns	Contracts over $750K
52.222-21	Prohibition of Segregated Facilities	All contracts over $10K
52.222-26	Equal Opportunity	All contracts over $10K
52.222-36	Equal Opportunity for Workers with Disabilities	Contracts over $15K
52.222-41	Service Contract Labor Standards	Service contracts over $2,500
52.225-1	Buy American — Supplies	Supply contracts
52.225-13	Restrictions on Certain Foreign Purchases	All contracts
52.227-14	Rights in Data — General	R&D and service contracts
52.232-33	Payment by Electronic Funds Transfer	All contracts
52.233-1	Disputes	All contracts
52.244-6	Subcontracts for Commercial Items	All contracts with subcontracts

DFARS Coverage (DoD Contracts)

DFARS Clause	Subject	Risk Level if Missing
DFARS 252.204-7012	Safeguarding Covered Defense Information — CMMC/cybersecurity requirements	CRITICAL — DoD contracts require CMMC compliance documentation
DFARS 252.225-7001	Buy American and Balance of Payments Program	HIGH — applies to most DoD supply contracts
DFARS 252.225-7009	Restriction on Acquisition of Certain Articles	HIGH — specialty metals, ball bearings, optical fiber restrictions
DFARS 252.227-7013	Rights in Technical Data — Noncommercial Items	HIGH — determines government data rights in technical deliverables
DFARS 252.239-7010	Cloud Computing Services	HIGH — FedRAMP requirements for cloud service delivery
DFARS 252.246-7007	Contractor Counterfeit Electronic Part Detection	MEDIUM — applies to electronics supply contracts

Representations & Certifications Review

In addition to clause review, the Compliance Checker audits all Representations and Certifications (Reps & Certs) in Section K of the solicitation or in the SAM.gov annual reps:

Small Business size certification accuracy under the applicable NAICS code
Socioeconomic status representations (8(a), SDVOSB, WOSB, HUBZone) — checks against certification expiry dates
Ownership and control representations
Debarment and suspension representations
Tax delinquency certifications
Predecessor company representations
Covered telecommunications equipment representations (Section 889 compliance)
Domestic end product certifications (Buy American)

Risk Categories

Every compliance finding is assigned one of four risk levels:

Risk Level	Definition	Required Action
CRITICAL	Missing or non-compliant element that will result in proposal rejection or contract termination if not corrected	Must be corrected before submission — no exceptions
HIGH	Non-compliance that creates significant legal or financial exposure; will likely be flagged by agency reviewers	Should be corrected before submission; document corrective action if deferred
MEDIUM	Compliance gap that creates potential liability but is unlikely to cause immediate rejection	Correct in final review; document risk if deferred
LOW / ADVISORY	Minor deviation or best-practice recommendation that does not create legal exposure	Address in next review cycle; document as known deviation

: Compliance Audit Report

The Compliance Checker produces a structured audit report with the following sections:

Document Header

Document reviewed (proposal/contract name, version, date)
Contract classification (type, agency, value threshold, business size)
DFARS applicability (Yes/No — if DoD agency)
Audit completion date

Executive Summary

Total findings by risk level (Critical: X, High: X, Medium: X, Low/Advisory: X)
Overall compliance rating: COMPLIANT / SUBSTANTIALLY COMPLIANT / NON-COMPLIANT
Recommended action: Submit as-is / Correct before submission / Major revision required

Findings Table

Finding #	FAR/DFARS Reference	Requirement	Status	Risk Level	Corrective Action	Deadline
001	FAR 52.204-7	SAM.gov registration active at time of submission	COMPLIANT	—	None required	—
002	FAR 52.222-41	Service Contract Labor Standards wage determination included	NON-COMPLIANT	CRITICAL	Include current wage determination for Place of Performance	Before submission
003	DFARS 252.204-7012	CMMC level documentation provided	PARTIAL	HIGH	Complete CMMC attestation for Level 2	Before submission
004	FAR 52.219-8	Subcontracting plan goals meet SDB/WOSB minimums	COMPLIANT	—	None required	—

Detailed Finding Narratives

For each Critical and High finding, a full narrative explaining the regulatory basis, the specific deficiency, the risk if uncorrected, and step-by-step corrective action instructions.

Cleared Clauses List

All reviewed requirements that are fully compliant — provides positive confirmation of what is working correctly, not just what needs fixing.

Contract-type-specific clause generation — not a generic checklist; tailored to each procurement's specific parameters
FAR Part 52 full library coverage — all standard clauses reviewed
DFARS supplement review — DoD-specific requirements including CMMC/cybersecurity
Representations & Certifications audit — socioeconomic status, ownership, debarment, Section 889
Four-tier risk categorization — Critical, High, Medium, Low/Advisory
Actionable corrective instructions — specific remediation steps, not just problem identification
Pre-submission and post-award review — applicable to both proposal compliance and contract administration

Every compliance finding is assigned one of four risk levels:

Risk Level	Definition	Required Action
CRITICAL	Missing or non-compliant element that will result in proposal rejection or contract termination if not corrected	Must be corrected before submission — no exceptions
HIGH	Non-compliance that creates significant legal or financial exposure; will likely be flagged by agency reviewers	Should be corrected before submission; document corrective action if deferred
MEDIUM	Compliance gap that creates potential liability but is unlikely to cause immediate rejection	Correct in final review; document risk if deferred
LOW / ADVISORY	Minor deviation or best-practice recommendation that does not create legal exposure	Address in next review cycle; document as known deviation

Output Format: Compliance Audit Report

The Compliance Checker produces a structured audit report with the following sections:

Document Header

Document reviewed (proposal/contract name, version, date)
Contract classification (type, agency, value threshold, business size)
DFARS applicability (Yes/No — if DoD agency)
Audit completion date

Executive Summary

Total findings by risk level (Critical: X, High: X, Medium: X, Low/Advisory: X)
Overall compliance rating: COMPLIANT / SUBSTANTIALLY COMPLIANT / NON-COMPLIANT
Recommended action: Submit as-is / Correct before submission / Major revision required

Findings Table

Finding #	FAR/DFARS Reference	Requirement	Status	Risk Level	Corrective Action	Deadline
001	FAR 52.204-7	SAM.gov registration active at time of submission	COMPLIANT	—	None required	—
002	FAR 52.222-41	Service Contract Labor Standards wage determination included	NON-COMPLIANT	CRITICAL	Include current wage determination for Place of Performance	Before submission
003	DFARS 252.204-7012	CMMC level documentation provided	PARTIAL	HIGH	Complete CMMC attestation for Level 2	Before submission
004	FAR 52.219-8	Subcontracting plan goals meet SDB/WOSB minimums	COMPLIANT	—	None required	—

Detailed Finding Narratives

For each Critical and High finding, a full narrative explaining the regulatory basis, the specific deficiency, the risk if uncorrected, and step-by-step corrective action instructions.

Cleared Clauses List

All reviewed requirements that are fully compliant — provides positive confirmation of what is working correctly, not just what needs fixing.

Every compliance finding is assigned one of four risk levels:

Risk Level	Definition	Required Action
CRITICAL	Missing or non-compliant element that will result in proposal rejection or contract termination if not corrected	Must be corrected before submission — no exceptions
HIGH	Non-compliance that creates significant legal or financial exposure; will likely be flagged by agency reviewers	Should be corrected before submission; document corrective action if deferred
MEDIUM	Compliance gap that creates potential liability but is unlikely to cause immediate rejection	Correct in final review; document risk if deferred
LOW / ADVISORY	Minor deviation or best-practice recommendation that does not create legal exposure	Address in next review cycle; document as known deviation

Output Format: Compliance Audit Report

The Compliance Checker produces a structured audit report with the following sections:

Document Header

Document reviewed (proposal/contract name, version, date)
Contract classification (type, agency, value threshold, business size)
DFARS applicability (Yes/No — if DoD agency)
Audit completion date

Executive Summary

Total findings by risk level (Critical: X, High: X, Medium: X, Low/Advisory: X)
Overall compliance rating: COMPLIANT / SUBSTANTIALLY COMPLIANT / NON-COMPLIANT
Recommended action: Submit as-is / Correct before submission / Major revision required

Findings Table

Finding #	FAR/DFARS Reference	Requirement	Status	Risk Level	Corrective Action	Deadline
001	FAR 52.204-7	SAM.gov registration active at time of submission	COMPLIANT	—	None required	—
002	FAR 52.222-41	Service Contract Labor Standards wage determination included	NON-COMPLIANT	CRITICAL	Include current wage determination for Place of Performance	Before submission
003	DFARS 252.204-7012	CMMC level documentation provided	PARTIAL	HIGH	Complete CMMC attestation for Level 2	Before submission
004	FAR 52.219-8	Subcontracting plan goals meet SDB/WOSB minimums	COMPLIANT	—	None required	—

Detailed Finding Narratives

For each Critical and High finding, a full narrative explaining the regulatory basis, the specific deficiency, the risk if uncorrected, and step-by-step corrective action instructions.

Cleared Clauses List

All reviewed requirements that are fully compliant — provides positive confirmation of what is working correctly, not just what needs fixing.

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