What is the preferred method of contract performance according to FAR?

The preferred method of contract performance according to the Federal Acquisition Regulation (FAR) emphasizes utilizing commercial items when available. This approach is significant because it aligns with the government's goal of enhancing competition and efficiency in the procurement process. By leveraging commercial items, agencies can benefit from established market practices, standard products, and potentially lower prices due to the broader availability and competition in the commercial marketplace.

Additionally, using commercial items can lead to reduced costs and expedited acquisition timelines, making it effective for meeting government needs while ensuring compliance with regulations. This methodology fosters innovation and encourages the use of goods and services that are already widely used in the commercial sector, thus improving value and performance for the government.

In contrast, other methods such as negotiated contracts, while important, do not inherently leverage the efficiencies associated with the commercial marketplace. Utilizing government-furnished property may assist in fulfilling contract requirements but is not a primary focus in terms of preferred performance methods. Fixed-price contracts, while beneficial in certain situations, do not specifically address the advantages provided by commercial items unless they are used in conjunction with them. Thus, the preference for commercial items is grounded in the overarching goal of achieving efficiency and cost-effectiveness in federal contracting.