Government contracts and private contracts alike are subject to legislative changes. However, because private parties do not have the power to change the law, both parties take a chance when they enter into an agreement. The set of laws and regulations that govern government contracts is immense, complex, and ever-changing. Laws encompass written statutes and precedential court opinions that interpret the statutes. Administrative regulations have the force of law if they have a binding effect on both the government and private parties.
Administrative agencies exist on the federal, state, county, and local levels.
Federal laws and regulations cover contracts issued by federal administrative agencies. Contracts issued by state administrative agencies are regulated by state laws and regulations, unless the state law or regulation is preempted by a federal law or regulation or encroaches on a federal government prerogative. The state procurement laws vary slightly from state to state, but most laws follow the same general principles. Federal Contract Law. FAR was drafted in the early 1980s by members of the Department of Defense and the General Services Administration and approved by Congress effective April 1, 1984.