The Revolutionary FAR Overhaul (RFO) is the most sweeping rewrite in decades of the Federal Acquisition Regulation, the government’s master rulebook for buying goods and services. The overhaul strips away non-statutory clutter to emphasize efficiency, innovation and mission effectiveness.

For contractors, it signals a new procurement landscape where streamlined rules, risk management principles and commercial solutions take center stage.

Links to our summaries

On this page you will find clear, practical summaries of the changes across key FAR Parts, from market research and competition to ICT acquisitions and emergency contracting, written to help you quickly understand what matters and how it may affect your business.

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• 1 – Federal Acquisition Regulations System
• 3 – Improper Business Practices and Personal Conflicts of Interest
• 4 – Administrative and Information Matters
• 5 – Publicizing Contract Actions
• 6 – Competition Requirements
• 7 – Acquisition Planning
• 8 – Required Sources of Supplies and Services
• 9 – Contractor Qualifications
• 10 – Market Research
• 11 – Describing Agency Needs
• 12 – Acquisition of Commercial Products and Commercial Services
• 13 – Simplified Procedures for Noncommercial Acquisitions
• 14 – Sealed Bidding
• 15 – Contracting by Negotiation
• 16 – Types of Contracts
• 17 – Special Contracting Methods
• 18 – Emergency Acquisitions
• 19 – Small Business
• 22 – Application of Labor Laws to Government Acquisitions
• 23 – Sustainable Acquisition, Material Safety and Pollution Prevention
• 24 – Protection of Privacy and Freedom of Information
• 25 – Foreign Acquisition
• 26 – Other Socioeconomic Programs
• 27 – Patents, Data, and Copyrights
• 28 – Bonds and Insurance
• 29 – Taxes
• 30 – Cost Accounting Standards Administration
• 31 – Contract Cost Principles and Procedures
• 32 – Contract Financing
• 33 – Protests, Disputes, and Appeals
• 34 – Major System Acquisition
• 35 – Research and Development Contracting
• 36 – Construction and Architect-Engineer Contracts
• 37 – Service Contracting
• 39 – Acquisition of Information and Communication Technology
• 40 – Information Systems and Supply Chain Security
• 41 – Acquisitions of Utility Services
• 42 – Contract Administration and Auditing Services
• 43 – Contract Modifications
• 44 – Subcontracting Policies and Procedures
• 45 – Government Property
• 46 – Quality Assurance
• 47 – Transportation
• 48 – Value Engineering
• 49 – Termination of Contracts
• 50 – Extraordinary Contractual Actions and the Safety Act
• 52 – Solicitation Provisions and Contract Clauses
• 53 – Forms

Overarching Changes

Each Part of the “RFO FAR” (shorthand for the updated FAR deviations) includes a Practitioner Album, which is an informal collection of lessons that create a new approach to procurement market research. The Practitioner Albums include a “Line Out” section, showing text that has been removed from the RFO FAR, though the FAR Council cautions that the Line Outs are not a direct map from the original FAR to the RFO FAR.

Eventually, the FAR Council plans to release companion guides to accompany each section of the RFO FAR that will contain non-statutory guidance to assist procurement officials in administering contracts under the new streamlined rules. The companion guides are intended to provide acquisition teams greater flexibility and discretion to consider techniques that are most appropriate for the particular acquisition. Currently, there is a partial FAR Companion available on acquisition.gov.

FAR Part 1 – Federal Acquisition Regulations System

FAR Part 1, as revised, emphasizes guiding principles that prioritize efficiency, innovation, and mission effectiveness. Key changes include:

• Delegated Decision-Making (1.102(a)(7)): Encouraging decision-making at the lowest appropriate level to enhance responsiveness.
• Commercial Solutions Preference (1.102(a)(3)): Promoting the use of readily available commercial products and services over more government-unique solutions.
• Innovation and Risk Management (1.102(c)): Shifting focus from perceived prior attempts to “eliminate all risk” in favor of “risk management” to foster innovation.

The revision also includes the anticipated “Regulatory Sunset” provision (1.109) aimed at eliminating all non-statutory provisions after four years, unless renewed by the Council.

FAR Part 3 – Improper Business Practices and Personal Conflicts of Interest

Except for a few deletions and plain language rewrites, the FAR Council left FAR Part 3 largely unchanged. The Practitioner Album emphasizes that “the fundamental rules of ethical conduct remain exactly the same,” namely:

• Always conduct business honestly and transparently.
• Every employee has a duty to report any suspected fraud, waste, abuse, or other violations of law or regulation.
• Continue to identify and report any personal, financial, or family relationships that give rise to actual or apparent biases when working on a government contract.
• The strict rules against accepting gifts, favors, or anything of value from contractors or potential contractors have not changed.
• Do not use non-public information you get from your government for work or personal gain.

The updates delete FAR 3.907, Whistleblower Protections Under the American Recovery and Reinvestment Act of 2009, and associated Part 52 contract clauses, because the Act has expired, as well as the following provisions deemed redundant or discretionary:

• FAR 3.103-3, The need for further certifications
• FAR 3.301, General
• FAR 3.406, Records

This update did not implement the January 15, 2025 proposed rule dubbed FAR Case 2023-006, in which the FAR Council introduced more robust contracting tools and guidance for handling Organizational Conflicts of Interest (OCI). Among other anticipated changes, the proposed rule sought to add definitions of the three OCI categories that have taken shape through case law interpretation of FAR 9.5 in recent years: unequal access to information, impaired objectivity, and biased ground rules. The proposed rule also sought to move the OCI content from FAR 9.5, which deals with contractor qualifications, to FAR Part 3. The FAR Council noted that, while the RFO FAR Part 3 does not implement these changes, the FAR Council plans to issue a policy on point at a later date.

FAR Part 4 – Administrative and Information Matters

Like some earlier RFO revisions, FAR Part 4 has been reorganized so that each subpart aligns with a step of the acquisition process: (1) Pre-solicitation, (2) Solicitation, Evaluation, and Award, and (3) Post-award. While the scope of the Part has remained largely unchanged, the Part has been significantly reduced in size. Further, the rewrite comes with changes to the reps and certs required on SAM.gov, carrying the Revolutionary FAR Overhaul past the bounds of regulations.

Content related to security requirements has been relocated to FAR Part 40. Along with removing security-related content, the revisions also eliminated (1) details regarding best practices for contract files, which have been relocated to the non-binding Companion Guide, (2) procedures for distributing paper copies of contracts, which are deemed obsolete, and (3) the clauses at FAR 52.204-1 Approval of Contract and FAR 52.204-22 Alternative Line Item Proposal.

The content of Subparts 4.4-4.23 (some moved to new FAR Part 40) has been retained and streamlined and/or moved throughout the new subpart structure. Contract provisions and clauses retained with no changes include FAR 52.204-5, Women-Owned Business (Other Than Small Business), 52.204-5, Personal Identity Verification of Contract Personnel, and 52.204-19, Incorporation by Reference of Representations and Certifications. Provisions and clauses retained with plain language or other edits include 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards, 52.204-14, Service Contract Reporting Requirements, and 52.204-15, Service Contract Reporting Requirements for Indefinite-Delivery Contracts

The revisions also maintain regulations required by the following statutes:

• Information Concerning Transactions With Other Persons (26 U.S.C. §§ 6041 et seq)
• Identifying Numbers (26 U.S.C. § 6109)
• Using Procurement Contracts (31 U.S.C. § 6303)
• Taxpayer Identifying Number (31 U.S.C. § 7701)
• Functions, Federal Procurement Data System (41 U.S.C. § 1122)
• Record Requirements (41 U.S.C. § 1712)
• Use of Electronic Commerce in Federal Procurement (41 U.S.C. § 2301)
• Examination of Facilities and Records of Contractor (41 U.S.C. § 4706)
• Federal Funding Accountability and Transparency Act of 2006 (Pub. L. 109-282)
• Digital Accountability and Transparency Act of 2014 (Pub. L. 113-101)

Finally, the revisions will result in changes to provisions, clauses, and representations and certifications related to contractor registration and identification in the System for Award Management. Six contract clauses (FAR 52.204-3, Taxpayer Identification, FAR 52.204-6, Unique Entity Identifier, FAR 52.204-8, Annual Representations and Certification, FAR 52.204-16, Commercial and Government Entity Code Reporting, FAR 52.204-17, Ownership or Control of Offeror, and FAR 52.204-20, Predecessor of Offeror) will be consolidated into two: FAR 52.204-7, System for Award Management—Registration, and FAR 52.204-90, Offeror Identification. Two other existing clauses (FAR 52.204-12, Unique Entity Identifier Maintenance, and FAR 52.204-18, Commercial and Government Entity Code Maintenance) have been updated and consolidated into FAR 52.204-13, System for Award Management—Maintenance, and FAR 52.204-91, Contractor Identification.

Currently, SAM.gov includes three types of representations and certifications: entity-level, procurement-specific, and by submission of offer. SAM.gov will continue to collect entity-level representations and certifications but will no longer collect the other two types. The OFPP anticipates these changes to SAM.gov will not go into effect in January 2026, at the earliest.

FAR Part 5 – Publicizing Contract Actions

FAR Part 5 has similarly been restructured from topic-based sections to a chronological process, mirroring the three main phases of the acquisition (Pre-solicitation, Solicitation, and Award). It also includes numerous tables in place of longer written directions as part of the FAR Council’s efforts to streamline requirements and make the language easier to read.

There is an increased use of acronyms in the revised version compared to the previous version, such as references to the Government Point of Entry (GPE). The revised Part 5 emphasizes the publication of notices on the GPE. Overall, the changes do not have any major implications for contractors nor would require contractors to make significant changes to how they monitor for contracting opportunities..

FAR Part 6 – Competition Requirements

Although the RFO significantly streamlines and shortens FAR Part 6, the changes should not have a significant effect on the procurement process. Perhaps the only substantive change is that RFO FAR Part 6 removes some sole source justification requirements that were not based in statute.

Small business contractors should note, however, that the accompanying Practitioner Album promotes “fusion procurements,” which are procurements comprised of multiple tasks competed under one solicitation, but with potential to award each task to a different vendor. Among other uses, fusion procurements may allow agencies to break historically sole-sourced requirements into smaller pieces, which could increase opportunities for small businesses to take a piece of the pie. Likewise, the Practitioner Album highlights phased proposal submission as a way to lower barriers to contractors like small businesses who cannot or may not want to devote significant resources to a proposal with no certainty of winning the contract.

FAR Part 7 – Acquisition Planning

The overhaul of FAR Part 7 emphasizes flexible acquisition planning rather than the “prescriptive checklists” of the former Part 7. Consistent with the objectives of the RFO, the new Part 7 has been dramatically reduced in size and several of the planning techniques and requirements of the former Part have been moved to the FAR Companion and/or the Category Buying Guide (coming soon). The accompanying Practitioner Album emphasizes “[w]hile there is no longer a requirement for acquisition plans with specific elements, there should still be forethought in what is being procured.”

RFO FAR Part 7 now draws a clear distinction between the acquisition planning required for task and delivery orders versus the award of new contracts. Task and delivery orders require fewer pre-award actions compared to new awards. A new section, 7.102 Requirements, mandates that agencies establish procedures for determining when a written or oral plan is needed and includes high-level outcomes that planning must promote: (1) acquisition of commercial products or services, (2) full and open competition, (3) selection of appropriate contract type, and (4) use of existing contracts. While 7.102 gives agencies discretion in establishing procedures for written or oral plans, 7.102(d) retains the requirement to use a written plan for cost-reimbursement and other high-risk contracts.

Section 7.103, Agency-head Responsibilities, has been restructured from a list of specific tasks to a list of high-level responsibilities and considerations when planning an acquisition for various types of procurements. Part 7 now attempts to appropriately consider small business concerns by relocating requirements previously found in Part 10. Section 7.107, Additional Requirements for Acquisitions Involving Consolidation, Bundling, or Substantial Bundling, has been updated to “streamline and standardize” the analysis, determination, and notification requirements for bundled acquisitions. Market research is still required up front to address the potential impact on small businesses.

Several subsections have been removed as either unnecessary or covered in other FAR sections, including 7.200 Scope of Subpart regarding economic quantities of purchases, Section 7.204, Responsibilities of Contracting Officers, Subpart 7.3 Contractor Versus Government Performance and its underlying sections, Section 7.403, paragraphs (a) and (b) of the former section, which described the types of assistance available from the General Services Administration (GSA), and the contract clauses at 52.207-1, Notice of Standard Competition, 52.207-2, Notice of Streamlined Competition, and 52.207-3, Right of First Refusal of Employment.

FAR Part 8 – Required Sources of Supplies and Services

Structurally, the RFO Part 8 implements three major changes. First, the ordering procedures for Federal Supply Schedule (FSS) contracts, previously housed in FAR Part 38 and subpart 8.4, have been moved to the General Services Acquisition Regulation (GSAR). Second, FAR Part 51, Use of Government Sources by Contractors, has been moved in its entirety to FAR 8.105. Third, FAR Parts 38 and 51 have been deleted and reserved.

The most important change to FAR Part 8 is perhaps the deletion of Federal Supply Schedule (FSS) ordering procedures from FAR Subpart 8.4, which have been moved to the GSAR. The FSS portion of Subpart 8.4 was quite lengthy, so this change makes a big impact. The FAR Council further streamlined the FSS content moved to the GSAR Subpart 538.71, eliminating separate ordering procedures for supplies and services requiring a statement of work, restrictions on the use of single-award Blanket Purchase Agreements (BPAs), and “lowest overall cost alternative” language related to fair and reasonable pricing.

Other highlights of the updated FSS ordering procedures include a clear distinction between quotations and offers, the provision of a “brief explanation” to unsuccessful offerors regardless of the reason for non-selection (previously, offerors were not entitled to a brief explanation if award was based on price alone), and increased contractor access to government supply sources.

Substantively, FAR Part 8 now requires agencies to procure commercial products and services from existing IDIQ contracts, BPAs, or other government-wide contracts that the OFPP has deemed “required use” before considering other sources. The Practitioners Album dubs these contracts “Best-in-Class,” though that term is yet to be defined. OFPP has announced that it will issue guidance in the coming weeks to explain exactly what qualifies a contract as “Best-in-Class” or “required use” such that it would be a mandatory source under FAR Part 8.

Additionally, the revision notes that it retains the following statutory requirements:

• Use of Procedures Other than Competitive Procedures (10 U.S.C. § 3204)
• Products of Federal Prison Industries (10 U.S.C. § 3905)
• Purchase of Prison-Made Products by Federal Departments (18 U.S.C. § 4124)
• Services for Executive Agencies (40 U.S.C. § 501)
• Architectural and Engineering Services (40 U.S.C. § 1103 Note)
• Competitive Procedures (41 U.S.C. § 152(3))
• Requirements for Purchase of Property and Services Pursuant to Multiple Award Contracts (41 U.S.C. § 3302)
• Use of Noncompetitive Procedures, (41 U.S.C. § 3304)
• Committee for Purchase from People Who are Blind or Severely Disabled (41 U.S.C. §§ 8501 et seq)
• Production and Procurement of Printing and Binding (44 U.S.C. §§ 501 et seq)
• Services Acquisition Reform Act of 2003 (Pub. L. 108-136)

FAR Part 9 – Contractor Qualifications

FAR Part 9’s changes are mostly minor, with all existing provisions and clauses retained. The most changes happening in Subpart 9.1, which underwent streamlining and reorganization. For example, regulatory language regarding “preaward surveys” and AbilityOne language was removed to the FAR Companion Guide, and the Practitioner Album noted that Part 8 already addresses AbilityOne. Additionally, guidance on special responsibility criteria for certain acquisitions, which was once stated in 9.104-2, was removed, and 9.104-2 is now “reserved.” Subpart 9.6 Contractor Teaming Arrangements and Subpart 9.7 Defense Production Pools and Research and Development Pools Several have been moved to the FAR Companion Guide as non-regulatory advisory language.

One change that may benefit contractors is in FAR 9.305 Risk. The first sentence in FAR 9.305 stated: “Before first article approval, the acquisition of materials or components, or commencement of production, is normally at the sole risk of the contractor.” This has been removed from the RFO FAR 9.305, perhaps leaving more room for argument based on the particular circumstances of the procurement..

FAR Part 10 – Market Research

The new FAR Part 10 (the Administration is referring to rewritten FAR requirements as RFO FAR) includes an accompanying Practitioner Album, an informal collection of lessons that create a new approach to procurement market research. Per the Practitioner Album, the following content remains in the RFO FAR Part 10:

• Preference for Commercial Products and Services (10 U.S.C. § 3453 and 41 U.S.C. § 3307)
• Planning and Solicitation Requirements (41 U.S.C. § 3306)
• Effective Communication Between Government and Industry (41 U.S.C. § 1703, note, inclusive of 41 U.S.C. § 3301 et seq and 41 U.S.C. § 2102 et seq).

The Practitioner Album notes that regulations removed from the FAR will be included in a “FAR Companion Guide” that has not yet been released. The Companion Guide would include guidance removed from the FAR that is not required by law. The removal of these provisions from the controlling body of law allows “acquisition teams greater flexibility and discretion to consider techniques which are most appropriate to their acquisition.”

The Practitioner Album also includes a “Line Out” showing all text that has been removed from FAR Part 10. Of note, the RFO FAR Part 10 omits any mention of small business considerations in market research. Previously, agencies were required to assess as part of market research whether small businesses could meet the agency’s procurement needs at fair market prices, among other considerations. This requirement, along with another deleted requirement to consult with the Small Business Administration when consolidating or bundling procurements, stem from statutory mandates in the Small Business Act. The Practitioner Album notes that information regarding bundling procurements is already addressed in FAR Part 7, so this content likely will appear in some form once the overhauled versions of those FAR parts are released. But the omission of small business from market research may preview that the Administration will give small business requirements less real estate in the new FAR, perhaps even eliminating some preferences and requirements.

The new FAR Part 10 includes an accompanying Practitioner Album Per the Practitioner Album, the following content remains in the RFO FAR Part 10:

• Preference for Commercial Products and Services (10 U.S.C. § 3453 and 41 U.S.C. § 3307)
• Planning and Solicitation Requirements (41 U.S.C. § 3306)
• Effective Communication Between Government and Industry (41 U.S.C. § 1703, note, inclusive of 41 U.S.C. § 3301 et seq and 41 U.S.C. § 2102 et seq).

Of note, the RFO FAR Part 10 omits any mention of small business considerations in market research. Previously, agencies were required to assess whether small businesses could meet the agency’s procurement needs at fair market prices, among other considerations in market research. This requirement, along with another deleted requirement to consult with the Small Business Administration when consolidating or bundling procurements, stem from statutory mandates in the Small Business Act. The Practitioner Album notes that information regarding bundling procurements is already addressed in FAR Part 7, so this content likely will appear in some form once the overhauled versions of those FAR parts are released. But the omission of small business from market research may preview that the FAR Council will give small business requirements less real estate in the new FAR, perhaps even eliminating some preferences and requirements.

FAR Part 11 – Describing Agency Needs

Procurement begins with an Agency need. How an Agency describes that need to potential bidders got a substantial update in RFO FAR Part 11. The Practitioner Album emphasizes that these changes were made to align requirements with commercial practices and encourage competition, in accordance with Executive Order 14271.

The FAR Council entirely eliminated four subparts: 11.2 (Using and Maintaining Requirements Documents), 11.4 (Delivery or Performance Schedules), 11.7 (Variation in Quantity), and 11.8 (Testing). The Practitioner Album notes that the delivery or performance schedules requirements will be found in the FAR Companion Guide, a move focused on flexibility and discretion for procurement officials.

One area of particular importance to construction contractors was left unchanged – Liquidated Damages (LDs). Instead of a rewrite, the LDs section has been renumbered to FAR Part 11.4 from 11.5. Alongside this renumbering is the elimination in its entirety of the former FAR Part 11.4 Delivery or Performance Schedules.

Environmental and sustainability requirements required by statute were retained, but the Green Procurement Compilation, a tool to assist contracting personnel with sustainable purchasing, has been removed at 11.002(d)(3)(i), (ii)..

FAR Part 12 – Acquisition of Commercial Products and Commercial Services

For items not already available under a government-wide acquisition vehicle required by FAR Part 8, FAR Part 12 provides the procedures for procuring commercial supplies and services—the clearly stated preference of this Administration. FAR Part 12 has been reorganized into four subparts: (1) Presolicitation, (2) Solicitation, Evaluation, and Award, (3) Post-award, and (4) Micro-purchases and has incorporated procedures previously found in FAR Parts 13, 14, and 15. The RFO adds new sections encouraging flexibility and innovation when acquiring commercial products and services and eliminates approximately 30% of existing clauses and provisions.

Notably, the “commercial service” definition at FAR 2.101 now includes construction, a big change from OFPP’s position in recent years. As a result, the “commercially available off-the-shelf (COTS)” definition changed slightly as well. Part 12 should be used in conjunction with Part 36 for construction contracts and subpart 22.4 on labor standards for contracts involving construction.

The Simplified Acquisition procedures previously housed in FAR Part 13 have been relocated to FAR Part 12. These procedures apply to acquisitions up to $7.5 million (or $15 million to support responses to emergencies or natural disasters). New sections direct agencies to issue a request for quotations (RFQ) followed by a purchase order for all Simplified Acquisitions and retain existing preferences to utilize commercial procurement where available and fixed-price contracts to the maximum extent practicable.

The RFO FAR clarifies that for acquisitions up to $7.5 million, there is no need to use FAR Part 15 procedures like creating an evaluation plan, holding discussions, establishing a competitive range, or scoring quotations. Upon request, agencies must provide unsuccessful offerors with a brief explanation of the award decision but are not required to provide a formal debriefing unless the acquisition value exceeds $7.5 million. The Simplified Acquisition procedures also encourage “innovative approaches” to contracting and allow contracting officers broad discretion in evaluating quotations in an efficient and minimally burdensome manner.

Procurements of commercial products and services exceeding $7.5 million are subject to the requirements of FAR Parts 14 or 15, including the requirement to provide debriefings to unsuccessful offerors. For all Part 12 procurements, contracting officers may decide whether to accept late quotations or offers.

In addition to the removal of approximately 40 of the clauses and provisions related to commercial contracts, two “master” clauses have been removed. According to OFPP, the majority of references in FAR 52.212-3 Offeror Representations and Certifications-Commercial Products and Commercial Services and 52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders-Commercial Products and Commercial Services are no longer required.

Finally, the definition of “subcontract” as including the transfer of commercial products or services between divisions, subsidiaries, or affiliates was moved to subpart 44.4, Subcontracts for Commercial Products and Commercial Services.

The RFO retains the following statutory requirements:

• Procurement of Commercial Products and Commercial Services (10 U.S.C. §§ 3451 et seq)
• Preference for Commercial Products and Commercial Services (10 U.S.C. § 3453 and 41 U.S.C. § 3307)
• Rights in Technical Data (10 U.S.C. § 3771 and 41 U.S.C. § 2302)
• Payments for Commercial Products and Commercial Services (10 U.S.C. § 3805 and 41 U.S.C. § 4505)
• Commercial Product (41 U.S.C. § 103)
• Commercial Service (41 U.S.C. § 103a)
• Commercially Available Off-the-Shelf Item (41 U.S.C. § 104)
• Procurement Notice (41 U.S.C. § 1708)
• Federal Acquisition Streamlining Act of 1994 (FASA) (Pub. L. 103-355)
• Defense Commercial Pricing Management Improvement (Pub. L. 105-261 Sec 803)

FAR Part 13 – Simplified Procedures for Noncommercial Acquisitions

The FAR Council significantly revised and substantially streamlined Part 13. It will now focus on simplified acquisition procedures for noncommercial products and services valued at or below the simplified acquisition threshold (SAT). The procedures for commercial products and services are being moved to the RFO version of Part 12, e.g., FAR 13.401, General, regarding purchases below the Micro-Purchase Threshold (MPT), and Subpart 13.5, Simplified Procedures for Certain Commercial Products and Commercial Services will be found in Part 12. As with other revised FAR sections, Part 13’s structure reflects the acquisition lifecycle; the new Part 13 also differentiates the procedures applicable to micro-purchases.

With the shifting of content moved to Part 12, the RFO is not adding procedures. Instead, the revised Part 13 contains several cross-references to Part 12 to promote consistency and reduce the need for contracting officials to apply two distinct sets of procedures for simple acquisitions, and let contractors and contracting officials know that the “flexible” techniques for commercial acquisitions are also considered “best practice” for simple noncommercial acquisitions. Notably, however, under RFO FAR 13.204(c), the permissible flexible techniques do not include allowing the use of Part 12 clauses (FAR 52.212-1, 52.212-2, and 52.212-4) in noncommercial acquisitions.

The revised Part 13 retains the prohibition on splitting requirements to stay below the SAT. Section 13.001 now also contains a link to a dynamic list of laws that do not apply to acquisitions valued at or below the SAT (41 U.S.C. § 1905). The Practitioner Album explains that use of the dynamic list will ensure that the regulation references a “continuously updated official source” instead of a static list (formerly at FAR 13.005). In addition, Section 13.301, Notifications, consolidates previous instructions for contracting officials to notify unsuccessful quoters, and it retains the posting requirements and requirements for brief explanations to offerors found in FAR Subpart 5.3. FAR 13.102 retains the requirement that acquisitions of supplies or services with an anticipated value above the MPT but below the SAT must be set aside for small business concerns (previously at 13.003(b)(1)).

In addition to the content that has been streamlined and/or moved to Part 12, former Part 13 content has been shifted to other various parts of the FAR or removed. Among others:

• The definition of “government wide commercial purchase card,” previously at 13.001, has been moved to FAR 2.101.
• The regulations regarding price or cost evaluation factors for multiple-award contracts (formerly section 13.106-1(a) (Soliciting Competition)) will be included in Part 16.
• Two Part 52 clauses, FAR 52.213-1, Fast Payment Procedure, and FAR 52.213-2, Invoices, have been moved from Part 13 to Part 32.
• FAR 52.213-3, Notice to Supplier, has been removed as unnecessary (as the general principles of offer and acceptance are sufficient).
• The guidance for payment procedures that were in FAR 13.4 have been moved and revised in FAR Part 32.
• FAR 13.302, Cancellations and Terminations, provides clearer distinction between cancelling an unaccepted purchase order and terminating an accepted purchase order and references the procedures contained in Part 49 or FAR 52.213-4 for terminations.

FAR Part 14 – Sealed Bidding

FAR Part 14’s subparts have been reorganized to better align with the acquisition lifecycle and several sections have been revised, relocated to the FAR Companion, or deleted as outdated or redundant.

FAR Part 14 is now comprised of four subparts: General, Presolicitation, Evaluation and Award, and Postaward. Each new subpart streamlines and consolidates all sections of the prior Part 14 that relate to each stage of a procurement. For example, Subpart 14.2, Presolicitation, consolidates all sections pertaining to activity prior to the receipt of bids, pulling from the former Subparts 14.2, 14.3, and 14.5. The majority of FAR Part 52 provisions and clauses have been retained with no changes, while seven have been updated for clarity.

The RFO FAR Part 14 deletes some sections deemed outdated or redundant, such as those referencing facsimile bids and bid envelopes. The revised Part 14 adds some guidance on handling unreadable electronic bids in FAR 14.302.

Several non-statutory sections have been removed and relocated to the FAR Companion:

• Subsection 14.201-8, Price-related factors;
• Section 14.208, Amendment of invitation for bids;
• Section 14.202-1, Bidding time;
• Section 14.207, Pre-bid conference;
• Section 14.209, Cancellation of invitations before opening;
• Subsection 14.407-2(b) and (c), Apparent clerical mistakes, regarding corrections;
• Subsection 14.404-1(d), Cancellation of invitations after opening, regarding extensions;
• Subsection 14.408-1(b), General, regarding a limited number of bids.

Part 15 – Contracting by Negotiation

The FAR Council touts RFO FAR Part 15 as one of the most “transformative” pieces of the overhaul. The overhaul redefines the negotiation and evaluation process, in some places prescribing more specific guidelines and in others giving the contracting officer more flexibility — often the changes appear aimed at reducing protestable issues.

RFO FAR Part 15 recasts discussions as negotiations and absorbs the concept of communications within clarifications. Contrary to the trend in other RFO Parts, RFO Part 15 adds non-statutory guidance on how to use clarifications. The new FAR 15.202(a) explains that contracting personnel may use clarifications to address minor or clerical errors or clarify certain aspects of a proposal, such as perceived deficiencies, weaknesses, errors, omissions, or mistakes; the relevance of an offeror’s past performance information; and adverse past performance information to which the offeror has not previously had an opportunity to respond. However, offerors may not revise their proposals in response to clarifications. Contracting officers may request additional information or documentation provided it does not change the material elements of the proposal.

The RFO redefines deficiency as any part of an offer that does not conform to a material requirement of an RFP, i.e., one that affects price, quantity, quality, or delivery, or that the RFP requires to be met at the time of proposal submission. The prior definition of deficiency was both broader and more vague, encompassing “a material failure of a proposal to meet a Government requirement or a combination of significant weaknesses in a proposal that increases the risk of unsuccessful contract performance to an unacceptable level.” Proposal revision is newly limited to revisions that affect material elements of a proposal rather than any revisions after the solicitation closing date.

The FAR Council also redefines the competitive range as the group of evaluated proposals that the contracting officer determines are best suited for further negotiation” instead of “all of the most highly rated proposals.” RFO FAR 15.204-1 and -2 require that contracting officers establish a competitive range if they plan to negotiate with offerors, and negotiate with every responsible offeror in the competitive range. These requirements mirror the current requirements in FAR 15.303 regarding discussions, though there has been a substantial edit and reorganization.

Other notable revisions include the addition of two evaluation approaches beyond best value tradeoff and lowest price technically acceptable: Highest Technically Rated with a Fair and Reasonable Price (FAR 15.103-3) and Phased Acquisitions (FAR 15.103-4). The FAR Council reduced the subparts from six to five and significantly streamlined, updated, and reorganized the Part.

FAR Part 16 – Types of Contracts

The FAR Council has updated FAR Part 16 clarifying the policies and procedures for contracting officials in selecting contract type. RFO FAR Part 16 also provides new flexibilities and tools for procurement officials. Per the accompanying Practitioner Album, the revisions to Part 16 can be broken down into four broad categories:

Innovative Contract Types: The rewrite seeks to shift from a restrictive to a permissive framework that would empower contracting officials to use “novel and innovative” contract structures.

Significant Task and Delivery Order Procedure Simplification: The Practitioner Album states that this will help reduce administrative errors, enhance consistency, and streamline the ordering process for both federal buyers and multiple-award contract holders.

On- and Off-Ramps: The revised FAR 16.504-4 authorizes “on-ramping” (adding new contractors) and “off-ramping” (removing contractors) from a multiple-award contract during its ordering period. The goal is to maintain current, competitive, and innovative pools of vendors on multiple-award contracts.

Blanket Purchase Agreements: The revised Part 16 now allows blanket purchase agreements (BPA) under multiple-award contracts, just as with Federal Supply Schedules at 16.507-2(c)(3).

Section 16.5, Indefinite-Delivery Contracts, has been revised to outline the types of task and delivery order contracts and provide guidance on their use. The revised section now encourages contracting officials to modify existing multiple-award contracts to allow establishment of BPAs for repetitive government needs. FAR 16.507 adds BPAs to the fair notice requirements for purchase orders generally. Contracting officials also must create ordering procedures specific to BPAs that provide fair opportunity to all BPA holders, but not all contractors under the IDIQ. Finally, the FAR Council spread FAR 16.505, “Ordering” has been spread across three new sections: 16.506 Postaward Procedures for Placement of Task and Delivery Orders, 16.507 Additional ordering procedures for multiple-award contracts, and 16.508 Protest of orders.

The following content has been moved to the FAR Companion Guide:

• Factors in selecting contract type (former 16.104)
• Guidance when ceiling prices are established for fixed-price contracts with prospective price redetermination (former part 16.205-2(b))
• Guidance on cost controls of fixed-ceiling-price contracts with retroactive price redetermination (former 16.206-2(c))
• Guidance on when to consider use of a completion or term form of a cost-plus-fixed-fee contact (former 16.306(d)(3) and 16.306(d)(4))
• Guidance on application of technical performance incentives (former 16.402-2(c) through 16.402-2(h))
• Guidance on structuring and applying firm and successive target fixed-price incentive contracts (former 16.403-1 and 16.403-2)
• Guidance on application of cost-plus-incentive-fee contracts (former 16.405-1)

FAR Part 17 – Special Contracting Methods

The FAR Council has revised FAR Part 17 with three stated goals in mind: “organizing information in a way that’s easier to understand and use; combining related topics and removing repeated information; and making the language clearer through simpler sentences and formatting.” Generally, the FAR Council removed some non-statutory language and reorganized Part 17 to follow the acquisition life cycle.

RFO FAR Part 17 moves the policy for multiyear contracting to a new “Presolicitation” section at FAR 17.103 and now includes two statutory requirements for DOD when considering a multiyear contract for supplies: (1) the contract must promote national security and (2) the Secretary must certify that specific conditions outlined in 10 U.S.C. § 3501 will be met for contracts valued at $500,000 or more. A new “Postaward” section at FAR 17.204 now houses the requirements for exercising options. Subpart 17.6, Management and Operating Contracts, and Subpart 17.7, Interagency Acquisitions have been sequentially reordered.

The FAR Council relocated several sections discussing objectives and best practices to the FAR Companion Guide:

• FAR 17.105-2 Objectives
• FAR 17.203 Solicitations
• FAR 17.204 Contracts
• FAR 17.4 Leader Company Contracting
• FAR 17.802(c) Policy (related to reverse auctions).

FAR Part 18 – Emergency Acquisitions

The FAR Part 18 Practitioner’s Album highlights the need to remain flexible when addressing emergencies and notes, “[t]he ability to act quickly is especially important to meet urgent emergency needs.”

To that end, FAR Part 18 has undergone extensive revisions. These revisions largely eliminate the procedural guidelines for agencies to follow when making an emergency procurement.

RFO FAR Part 18 retains the preference at FAR 18.203 to award contracts to local organizations if the President has made a declaration of emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. However, the revisions eliminate a preference at FAR 18.202 that encourages contracting officers to procure sustainable products and services in response to emergencies.

The related Practitioner Album links to a cheat sheet titled “Emergency Procurement List,” which highlights flexibilities from across the FAR that contracting officers may utilize without a formal emergency declaration. The Emergency Procurement List cites the exception to full and open competition for unusual and compelling urgency in Part 6, letter contracts under Part 16 and extraordinary contractual actions available under Public Law 85-804, among others. The Album suggests that procurement officials use “smart accelerators” in making their award decisions, such as reducing the written record of their deliberations and considerations to cut down on decision-making time.

FAR Part 19 – Small Business

Despite early signs that the FAR Council might significantly cut back small business preferences in the RFO FAR Part 19, the revisions are conservative. In addition to consolidation, reorganization, and streamlining, the revisions include minor reductions to the benefits provided to 8(a) contractors and changes to small business recertification timing.

Most notably, the FAR Council retained the Rule of Two for procurements above the Simplified Acquisition Threshold (SAT). The Rule of Two requires contracting officers to set aside procurements for small businesses where there is a reasonable expectation that two or more small businesses will submit offers at fair market price and quality. The Rule of Two is a statutory requirement for procurements between the micro-purchase threshold and the SAT, but for purchases above the SAT, the Rule of Two is a matter of policy. The administration issued a press release with RFO FAR Part 19 stating its commitment to small business participation in the federal market.

The RFO FAR Part 19 clarifies that the Rule of Two only applies to contracts, not task orders, though contracting officers retain discretion to set aside orders for small businesses. The Practitioner’s Album states that the decision to set aside orders is discretionary and cannot be the basis for a bid protest, but the legal effect of such a declaration is likely little to none. The contracting officer’s discretion is not unlimited and is often questioned in bid protests. Discretion cannot save an arbitrary and capricious contracting decision.

Another important revision is the removal of size certifications at the order level. The RFO FAR Part 19 defines agency small business credit by the size determination made at the contract-level, which is only updated when contract-level events like options or novations take place. This revision currently conflicts with SBA regulations, which allow contracting officers to request size recertification at the order level. SBA’s regulations may change in the coming months as the RFO FAR is finalized through notice and comment, or the FAR Council could choose to harmonize the regulations at some middle ground.

The revised FAR Part 19 will impact the 8(a) program most significantly. First, for acquisitions below the competitive thresholds set forth in FAR19.108-7(a)(2) ($7 million for acquisitions assigned NAICS codes and $4.5 million for all other acquisitions), contracting officers must first attempt a competitive 8(a) award using SBA-approved government-wide contracts before proceeding with a sole source 8(a) award. Second, follow-ons to 8(a) procurements that previously would have been held exclusively for 8(a) participants now can be automatically released from the 8(a) program if the procuring agency competes the follow-on among the HUBzone, SDVOSB, or WOSB programs.

Finally, the new FAR Part 19 is titled Small Business rather than Small Business Programs.

FAR Part 22 – Application of Labor Laws to Government Acquisitions

Part 22 was restructured to align with the stages of the acquisition lifecycle, i.e., Presolicitation, Evaluation and Award, Postaward. The core requirements to protect workers employed on government contracts remain the same, largely because those rights stem from statutory mandates.

One key deletion that should come as no surprise is the elimination of Subpart 22.8 – Equal Employment Opportunity. The Practitioner Album makes clear that this move is to align with Executive Order 14173 (Ending Illegal Discrimination and Restoring Merit-based Opportunity), which was signed on January 21, 2025, an early priority of the new administration.

The RFO FAR Part 52 deletes the following associated (and formerly ubiquitous) clauses:

• FAR 52.222-21 Prohibition of segregated facilities
• FAR 52.222-22 Previous Contracts and Compliance Reports
• FAR 52.222-23 Notice of Requirement for Affirmative Action To Ensure Equal Employment Opportunity for Construction
• FAR 52.222-24 Pre-award On-Site Equal Opportunity Compliance Evaluation
• FAR 52.222-25 Affirmative Action Compliance
• FAR 52.222-26 Equal Opportunity
• FAR 52.222-27 Affirmative Action Compliance Requirements for Construction
• FAR 52.222-29 Notification of visa denial
• FAR 52.222-38 Compliance with Veterans’ Employment Reporting Requirements
• FAR 52.222-46 Evaluation of Compensation for Professional Employees

The rewrite also eliminates Subpart 22.11 (Professional Employee Compensation).

RFO FAR Part 22 also includes updated procedures for contracting officers to check offerors’ compliance with veteran reporting requirements, pointing to the VETS-4212 database rather than a customer support contact.

FAR Part 23 – Sustainable Acquisition, Material Safety and Pollution Prevention

Formerly titled Environment, Sustainable Acquisition, and Material Safety, FAR Part 23 is now titled Sustainable Acquisition, Material Safety, and Pollution Prevention. As expected, the FAR Council heavily reworked FAR Part 23 to bring it in line with the Administration’s approach to climate regulation, namely dismantling the myriad regulations and programs from prior administrations. The changes include deleting clean energy requirements, removing references to the “environment,” and streamlining and consolidating other provisions.

Much of the material removed in RFO FAR Part 23 stemmed from the now-revoked Executive Order 14057, Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability. The Biden-era EO 14057 directed agencies to reduce emissions, promote environmental stewardship, and incentivize markets for sustainable products and services, among other direction.

FAR Part 23’s Scope section is reduced to a single sentence, removing the previous version’s stated goal to “protect and improve the quality of the environment.” The Policy section also removes the previous directive that agencies shall reduce emissions, including greenhouse gas emissions. FAR 23.4 Pollution Prevention, Environmental Management Systems, and Waste Reduction has been renamed Pollution Prevention. The regulations on Environmental Management Systems (23.404) and Waste Reduction Programs (23.405) and their related Part 52 clauses have been removed from Part 23.4 as those programs stemmed from EO 14057. Throughout RFO FAR Part 23, the FAR Council removed references to greenhouse gases and global warming, including deletion of related definitions and Subpart FAR 23.5 Greenhouse Gas Emissions.

RFO FAR Part 23 adds several new definitions, namely “energy-efficient product,” “low standby power device,” “pollution prevention,” “sustainable product,” and “energy savings performance contract.” Sustainable products are defined as encompassing four categories: 1) a product that contains recovered material designated by the EPA under the Comprehensive Procurement Guidelines; 2) an energy-efficient product or low standby power device; 3) a biobased product that meets the requirements of the Department of Agriculture’s BioPreferred program; and 4) a substance identified in the EPA’s Significant New Alternatives Policy (SNAP) program as a safe alternative to an ozone-depleting substance. Agencies still must procure sustainable products to the maximum extent practicable under FAR 23.102.

There is a new Part 23.106, titled “Restrictions.” This includes a list of prohibitions for contracting officials to not purchase products ozone-depleting substances if they are for the purpose prohibited under 1) 42 U.S.C. § 7671d(c) and 40 CFR § 82.84(a)(2), 2) 42 U.S.C. § 7671h and 40 CFR § 82.84(a)(4), and 3) 42 U.S.C. § 7671i and 40 CFR § 82.84(a)(4).

FAR Part 24 – Protection of Privacy and Freedom of Information

The FAR Council left FAR Part 24 largely untouched, and the overhaul makes no noteworthy changes to provisions or clauses. Only Section 24.301 has been deleted as duplicative, as it is already covered in the clause at FAR 52.224-3, Privacy Training. The Practitioner Album notes that best practices for processing Freedom of Information Act requests for awarded contracts will be found in the FAR companion guide.

Part 25 – Foreign Acquisition

RFO FAR Part 25 retains much of its original requirements because they are based in statutes like the Trade Agreements Act, Buy American Act, and the Free Trade Agreements. The rewrite removes references to the American Recovery and Reinvestment Act (ARRA) of 2009 as obsolete, and FAR subpart 25.7 Prohibited Sources because the content is now in FAR Part 40. Some non-statutory content was moved to the FAR Companion, like FAR 25.1003 Tax on Certain Foreign Procurements, FAR 25.002 Applicability of Subparts, and evaluation guidance formerly found in FAR 25.504.

Both Subparts 25.1 Buy America – Supplies and 25.2 Buy America – Construction now both require use of the centralized waiver process for individual nonavailability determinations at the Made in America Office (MIAO). The new 25.103(b)(2)(iii) and 25.202(a)(2) require contracting officers to submit a proposed individual nonavailability waiver for MIAO’s review and posting to the a web portal at MadeinAmerica.gov, which is visible to the public. Absent an exception to the posting requirement, the contracting officer may not make a contract award until MIAO has reviewed or waived the review requirement. Where a case is exceptionally urgent, contracting officers must file urgent requirement reports for such waivers within 30 days of award, which MIAO will make publicly available on the website.

FAR Part 26 – Other Socioeconomic Programs

Similar to other RFO sections, FAR Part 26 has been overhauled so each subpart follows the acquisition process chronologically. Several sections have been moved to the FAR Companion Guide:

The procedures for challenges to representation under the Indian Incentive Program (previously at FAR 26.103). The revised FAR Subpart 26.1 states it is still permissible to use a 5% incentive payment for utilizing Indian organizations and Indian-owned economic enterprises. The related clause, FAR 52.226-1, has been updated.
Disaster Relief Registry information (previously at FAR 26.205). The statutory preference for awarding contracts to local firms after a major disaster/emergency remains at FAR 26.202-1.
Procedures related to the Food Donation Program (previously at FAR 26.403). The policy encouraging contractors to donate excess “wholesome” food remains at FAR 26.404-1. The related clause, FAR 52.226-6, has been updated..

FAR Part 27 – Patents, Data, and Copyrights

Intellectual property rights historically have been a sticking point for some companies considering doing business with the government. The overhauled FAR Part 27 signals that the government may be more willing to meet contractors halfway for certain categories of data rights, offering the potential for negotiation of terms.

FAR 27.405, Other data rights provisions, has undergone substantial changes, specifically with respect to Special Works, 27.405-1, and Existing Works, 27.405-2. Previously, the FAR required that contracts for special works or existing works include the clauses at FAR 52.227-17 Rights in Data – Special Works or 52.227-18 Rights in Data – Existing Works, respectively. RFO FAR Part 27 removes this requirement and authorizes agencies to negotiate these rights instead, requiring only that contracts address the government’s rights. Similarly, the previous FAR 27.407, Rights to technical data in successful proposals, laid out a rigid process by which contractors could protect technical data shared in proposals. By contrast, the new FAR 27.407 instructs contracting personnel to negotiate terms defining the government’s license rights in technical data.

The FAR Council did not add similar flexibility for Patents and Copyrights. RFO FAR Subpart 27.2 looks almost identical to the original version. RFO FAR Subpart 27.3 Patent Rights under Government Contracts has been streamlined, but the substance and procedures at FAR 27.304, Procedures, have been retained.

FAR Part 28 – Bonds and Insurance

There are minimal changes to FAR Part 28. All content has been retained, and no changes were made to the related FAR Part 52 clauses..

FAR Part 29 – Taxes

RFO FAR Part 29 is primarily focused on plain language rewrites, streamlining and instructing contracting officers to seek tax-related cost savings for the government. The RFO removes outdated and redundant regulatory language; for example, RFO FAR Part 29 removes FAR 29.402-4 prescribing tax requirements for foreign contracts in Afghanistan because the Status of Forces Agreement expired in 2021.

There are several other changes of which contractors should be aware:

• RFO FAR 29.1 requires, rather than recommends, contracting officials to consult with agency legal counsel for any tax issues that arise, including to determine whether a particular tax is applicable or the contractor or agency is entitled to a tax exemption.
• Similarly, RFO FAR 29.2 now requires contracting officials to request offers on a tax-exclusive basis when the law exempts the government from federal excise taxes, unless inappropriate under the circumstances.

FAR Part 30 – Cost Accounting Standards Administration

FAR Part 30 was reorganized to align with the procurement lifecycle and reduced from six parts to four: 30.1 (General), 30.2 (Presolicitation), 30.3 (Evaluation and Award), and 30.4 (Postaward). The FAR Council did not eliminate the content of FAR Subparts 30.5 and 30.6, but reorganized it within the four-part structure.

The update deleted minor obsolete provisions edited for plain language, but did not change the substance of Part 30. Instructions for contracting officers to support their determination of a contract’s exemption from cost accounting standards was removed from FAR 30.202-7, and will be included in the FAR Companion Guide.

FAR Part 31 – Contract Cost Principles and Procedures

Thankfully, given the significant investment contractors have made in building compliant accounting systems, FAR Part 31 does not substantively change the cost principles as we know them. Some definitions were removed, but otherwise the FAR Council left the Part as it was.

FAR Part 32 – Contract Financing

FAR Part 32 has remained largely untouched, with only minor plain language revisions and the addition of a new Subpart 32.12 for fast payment procedures. The FAR Council also expanded the scope to include financing other than commercial purchases and fast payment procedures.

Most notable is the addition of Subpart 32.12, Fast Payment Procedures, relocated from Subpart 13.4, which allows payment under limited conditions to a contractor prior to the Government's verification that supplies have been received and accepted.

The subpart outlines the conditions for use, the preparation and execution of orders, and the applicable contract clause, FAR 52.232-90. Generally, fast payment procedures are appropriate where (1) the contract order does not exceed $35,000 (exceptions are permitted on case-by-case basis), (2) geographic separation and lack of communication facilities between Government receiving and disbursing activities will make timely payment upon acceptance impractical, (3) title to supplies will pass to the Government, (4) the supplier agrees to replace, repair, or correct non-conforming supplies, (5) the contract or order is firm-fixed-price, and (6) there is a system in place to document contractor performance, provide feedback to the contracting officer, and identify suppliers with a history of abusing fast payment procedures.

FAR 32.007, Contracting financing payments, underwent a perplexing change that moved the default 30-day timeline for contract financing payments to guidance. The overhauled FAR 32.007 retains the prohibition on agency-specific payment timelines of less than 7 days or more than 30 days from receipt of a proper request. Accordingly, FAR 32.007 does not appear to require agencies to establish a time frame for making contract financing payments, but also does not provide a default rule. However, contract clauses that provide for contract financing payments (e.g., 52.232-16, Progress Payments) instruct contracting officers to “insert date prescribed by agency head; if not prescribed, insert ‘30th’.” Consequently, the default 30-day deadline appears to persist, despite its removal from FAR 32.007.

Paragraph (d) of FAR 32.102 (Description of contract financing methods), which discusses payments for accepted supplies and services that are only part of the contract requirements (i.e., partial deliveries), has been removed as explanatory because payment for partial deliveries is governed by the standard payment clauses and is not a form of contract financing.

Subsection (d) of FAR 32.104, Providing contract financing, states that a contracting officer may provide contract financing in the form of performance-based payments or customary progress payments if several conditions are met. The condition related to the contract price for contractors that are not small businesses has been adjusted from $3.5 million to $3 million.

FAR Part 33 – Protests, Disputes, and Appeals

Part 33 remains intact in substance, given the statutory bases of most of its regulations. As with other parts, Part 33 has been reorganized to follow the acquisition cycle. Like other sections, it has been re-organized into pre-award and post-award actions for ease of reading.

The RFO version includes a new purpose statement at 33.100. This emphasizes that the bid protest process is not intended to serve as a way for offerors to get additional insight or be used by incumbents to delay contract transition.

The RFO FAR Part 33 includes new requirements for agency-level protests:

• 33.104-4(a)(4)(ii): Contracting officers (CO) must report protests to the head of contracting activity “as soon as practicable” after filing.
• 33.104-4(a)(5)(ii): Agencies must give any protester who elects an independent review at a level above a CO a redacted copy of the source selection decision and provide them an opportunity to submit a supplemental statement to the independent review official.

For protests before the Government Accountability Office (GAO), the requirement at FAR 33.104(a)(1), which required protesters to provide the CO a copy of their protest within a day of filing at the GAO, has been moved to FAR 52.233-2.

Overall, the changes to Part 33 are minimal, but what changes have been made are beneficial to contractors..

FAR Part 34 – Major System Acquisition

Updates to FAR Part 34 focus on simplifying the government process for acquiring major systems.

The revisions aim to reduce administrative burdens and encourage commercial solutions. The expectation is that, by streamlining requirements, agencies can more effectively procure complex systems that meet operational needs.

FAR Part 35 – Research and Development Contracting

Part 35 was reorganized into three subparts based on the acquisition lifecycle: 35.1 Presolicitation, 35.2 Evaluation and Award, and 35.3 Postaward. The FAR Council further revised Part 35 to emphasize plain language, remove duplicative content from other sections of the FAR and provide greater flexibility to procurement officials looking to source R&D contracts. The accompanying Practitioner Album notes that these changes were made to attract new companies to the federal procurement marketplace.

FAR 35.005 Work Statement formerly required agencies to articulate their area of research exploration or the objectives of applied research and development to guide contractor R&D efforts. The RFO FAR removes this requirement but will include it in the companion guide to permit procurement officials greater flexibility and discretion in contracting. The RFO FAR also moves the idea of “recoupment,” or recovery of government-funded costs from contractors that take the fruits of their R&D efforts to the commercial marketplace, to the companion guide.

Educational institutions are major contracting partners for R&D, and at first glance, the RFO appears to have removed them from future consideration by eliminating FAR 35.015. However, the Practitioner Album makes clear this is not the case. Instead, educational institutions are considered an organization-type under the RFO FAR 35.201.

Part 36 – Construction and Architect-Engineer Contracts

Part 36 underwent a major revision and reorganization. Notably, Part 36 retains the Biden-era requirement to use Project Labor Agreements on construction projects valued at $35 million or more. There are several other changes that contractors should note:

• 12% Rule: FAR 36.501 and its implementing clause, FAR 52.236-1, mandated that a prime contractor self-perform at least 12% of the work, not inclusive of specialty trade work like plumbing and electrical, to ensure adequate supervision and investment in larger construction projects. The RFO removes this requirement.
• Pre-Award Site Inspections and Preconstruction Conferences: These procedures, formerly found at FAR 36.210, 36.212, 36.522 and 36.523, are no longer mandatory. Instead, agencies will have discretion regarding whether to conduct these activities.
• Sealed Bidding: Construction-specific sealed bidding requirements in FAR 36.213 have been eliminated. Instead, contracting officers will use FAR Part 14 procedures as they would for non-construction procurements.
• Construction Project Magnitude: RFO FAR Part 36 removes the requirement for agencies to disclose the general cost magnitude of construction projects in the solicitation, so contractors may have to perform additional leg work to understand the project specifics before bidding.
• Selection Criteria: FAR 36.602-1 and 36.603 established the selection criteria agencies used to evaluate firms for architect-engineer contracts. The Practitioner Album states that these sections were eliminated to permit “additional flexibility in evaluating offeror qualifications.”

FAR Part 37 – Service Contracting

FAR Part 37 looks quite different, but the changes are almost all organizational rather than substantive. The overhauled Part is now comprised of eight subparts, which differ somewhat in name from the prior subparts—(1) Performance-based Acquisition, (2) Personal Service, (3) Inherently Governmental Functions, (4) Advisory and Assistance Services, (5) Child Care Services, (6) Nonpersonal Healthcare Services, (7) Dismantling, Demolition, or Removal Services, and (8) Other Service Considerations. Each subpart is organized based on the stages of an acquisition.

Although subpart 37.1, Performance-based Acquisitions, is technically a new subpart, it is a consolidation of the policy preference of the former 37.102(a) and the procedural guidance of the former subpart 37.6.

Subpart 37.2, Personal Services, prohibits the use of personal services contracts unless authorized by statute, describes the characteristics of a personal services contract (previously at former 37.104(d)), and advises agencies to avoid the exercise of certain types of supervision or control that would convert a contractor employee into a Government employee.

Subpart 37.3, Inherently Governmental Functions, is now (1) a policy statement that proscribes the award of contracts for the performance of an inherently governmental function and (2) a procedural requirement that agencies must actively administer contracts so as to avoid expanding into inherently governmental functions.

Subpart 37.4, Advisory and Administrative Services (A&AS), is a reorganization and consolidation of the policy and procedural requirements of the former Subpart 37.2. The policy for A&AS contracting, previously encouraged as a “legitimate way to improve Government services and Operations” and allowed “at all organizational levels,” is now allowed only “[w]hen essential to the agency’s mission.”

Subparts 37.5 consolidates the former Part 37’s scattered provisions related to childcare services. Subpart 37.6 Nonpersonal Health Care Services and Subpart 37.7 Dismantling, Demolition, or Removal of Improvements, have been renumbered from 37.4 and 37.3, respectively, and reorganized, though the requirements remain largely untouched.

The new Subpart 37.8, Other Service Considerations, is used as a catch-all for miscellaneous service contract policies and requirements including uncompensated overtime, services of quasi-military armed forces, foreign national severance cost limitations, and use of private sector temporaries.

FAR Part 39 – Acquisition of Information and Communication Technology

The FAR Council has changed the name of FAR Part 39 from Acquisition of Information Technology to Acquisition of Information and Communication Technology . The more inclusive “Information and Communication Technology” (ICT) reflects a wider scope, which includes information technology, Internet of Things Devices, Emerging Technology, and Operational Technology. The new Part 39 also eliminates FAR 39.105 and FAR 52.239-1, Privacy or Security Safeguards, and advises using instead FAR subpart 4.19 and FAR 52.204-21, Basic Safeguarding of Covered Contractor Information Systems and CUI.

Another notable change is that minimum educational or experience requirements for proposed contractor personnel will now be permitted in ICT solicitations. FAR 39.104 used to prohibit such requirements absent a finding of agency need. In addition, despite the Administration’s focus on consolidating government-wide IT procurements at the General Services Administration, RFO FAR Part 39 maintains that agencies should use modular contracting, “i.e., use one or more contracts to acquire information technology systems in successive, interoperable increments,” to acquire major IT systems.

The Practitioner’s Album addresses the changing approach to risk with these deviations. The new focus is on managing, not avoiding, risk.

FAR Part 40 – Information Systems and Supply Chain Security

The new FAR Part 40 has been consolidated into three subparts.

Subpart 40.1, Processing Supply Chain Risk Information, defines “supply chain risk information” and requires that executive agencies share relevant supply chain risk information with the Federal Acquisition Security Council if the agency determines there is a reasonable basis to conclude a substantial supply chain risk associated with a source or covered article exists. This requirement has been shortened and relocated from FAR subpart 4.23.

Subpart 40.2, Security Prohibitions and Exclusions, has simplified and shortened the regulations related to Section 889 and other prohibited contracting activities due to national security concerns. Agencies are prohibited from “contracting, including renewing or extending contracts, with contractors that operate, provide, and/or use certain products or services that violate any of the following prohibitions”:

1. Hardware, software, and services from Kaspersky Lab and its affiliates (previously FAR 40.202(b));
2. Certain Chinese telecommunications and video surveillance equipment and services (previously at FAR 40.202(d));
3. TikTok and ByteDance applications (previously at FAR 4.22);
4. Drones and unmanned aircrafts manufactured or assembled by foreign entities covered by the American Security Drone Act of 2023;
5. Government wide exclusion orders under the Federal Acquisition Supply Chain Security Act (previously at FAR 4.2303);
6. Acquisitions restricted by the Office of Foreign Assets Control (OFAC) (previously at FAR 25.7);
7. Contracting that would violate restrictions of the Accountability and Divestment Act of 2007 (Sudan) and the Iran Sanctions Act (previously in FAR 25.7).

Subpart 40.3, Safeguarding Information, now houses the policies and procedures for safeguarding classified information, relocated from FAR 4.4, and the requirements for the basic safeguarding of Federal Contract Information, relocated from FAR 4.19.

The contract clauses prescribed by FAR Part 40 have been reorganized and consolidated. Five separate provisions—FAR 52.204-24, 52.204-26, 52.204-29, 52.225-20, and 52.225-25—have been merged into one new provision, FAR 52.240-90, Security Prohibitions and Exclusions Representations and Certifications. Seven other clauses—FAR 52.204-23, 52.204-25, 52.204-27, 52.204-28, 52.204-30, 52.225-12, and 52.240-1—have been merged into FAR 52.242-91, Security Prohibitions and Exclusions. Finally, a new Security Requirements clause at FAR 52.240-92 replaces the existing FAR 52.204-2 and a new Basic Safeguarding of Covered Contractor Information Systems clause at FAR 52.240-93 replaces the existing FAR 52.204-21.

FAR Part 41 – Acquisitions of Utility Services

The FAR Council made minimal changes to FAR Part 41. Notably, the definition of utility services has been updated to better reflect modern technology and address the proliferation of broadband internet and information technology services. “Utility services” include continuous services (e.g., electricity, natural or manufactured gas, water, sewerage) used in the United States, but do not include utility services used in a foreign country, nor “broadband internet, non-broadcast television, telecommunications services, information technology services, [or] acquisitions of natural or manufactured gas when not purchased as utility services (i.e., when purchased as commodities).”

Part 42 – Contract Administration and Auditing Services

The FAR Council renumbered and streamlined many subparts, and reduced the overall subparts from 17 to 13 total. RFO FAR 42.1101 broadens the potential uses of past performance information by replacing language limiting its relevance to future source selection purposes. For contracts awarded after April 1, 2026, contractor performance evaluations can be used at any point in the acquisition life cycle, perhaps as a short cut to documenting performance problems that lead to cure notices or default terminations. The new FAR 42.1502 also removes AbilityOne contractors’ exception from performance evaluations, noting the desire to incentivize good contract performance by AbilityOne vendors.

The following content was moved to the FAR Companion:

• FAR 42.002(c) Interagency agreements
• FAR 42.003(b) Cognizant federal agency
• FAR 42.302 Contract administration functions
• FAR 42.401Contract correspondence
• FAR 42.402 Visits to contractors’ facilities
• FAR 42.403 Evaluation of contract administration functions
• FAR 42.501 Postaward orientation
• FAR 42.502 Selecting contracts for postaward orientation
• FAR 42.505 Postaward subcontractor conferences
• FAR 42.705-2(b) Procedures, related to distribution of documentation of indirect contract rates
• FAR 42.1106 Production surveillance and reporting requirements
• FAR 42.1503(d) Evaluation of Federal Prison Industries (FPI) performance

The accompanying Practitioners Album encourages contracting personnel to take an active role in managing their contracts, from initiating kick-off meetings to set expectations to frequent and ongoing contractor assessment outside the formal CPARS process. It further urges contracting personnel to consider alternatives to formal memos when documenting the contract file, including decision logs, email summaries, and infographics.

FAR Part 43 – Contract Modifications

FAR Part 43 underwent a reorganization as opposed to a rewrite and remains relatively unchanged. The Practitioner’s Album notes that this approach was taken to “support uniformity across Government” while clarifying “the process for documenting and definitizing change orders.”

Although the content will be recognizable to those familiar with this Part, information may not be where you last saw it, as the Part has a new numbering system. The key features that remain include:

• Requirements for valid obligations of appropriated funds (31 U.S.C. § 1501, Documentary Evidence Requirement for Government Obligations)
• Prohibition against obligations in excess of available funds (31 U.S.C. § 1341, Anti-Deficiency Act)
• Procedures for resolving contract disputes (41 U.S.C. §§ 7101–7109, Contract Disputes Act of 1978)

The Practitioner’s Album also includes a useful tool from the Defense Acquisition University, the Contract Modification Authority Decisions Help Guide, for Contracting Officers to rely upon when confronted with the need for a change or modification to the contract.

FAR Part 44 – Subcontracting Policies and Procedures

Like the rest of the RFO, Part 44 has been reorganized to align with the stages of acquisition: subpart 44.2, Evaluation and Award, subpart 44.3, Postaward, and subpart 44.4, Subcontracts for Commercial Products and Commercial Services. Despite the structural changes, the overhaul primarily affects the obligations of contracting officers related to the review and approval of subcontracting.

Definitions, now housed in section 44.001, have remained largely unchanged except for the removal of the definition of “approved purchasing system,” which already exists in clause FAR 52.244-2, Subcontracts. The RFO FAR Part 44 does not change the definition of Subcontract in FAR 52.244-2.

The FAR Council reduced and reorganized Subpart 44.2, previously titled “Consent to Subcontracts,” to consolidate policies related to subcontract consent, advance notification, and the contracting officer’s evaluation process. The RFO FAR Part 44 removes several sections regarding the contracting officer’s evaluation process and requirements. FAR 44.202-2(a) previously contained a thirteen-point list of considerations for contracting officers before consenting to a subcontract; this list has been reduced to four high-level situations requiring review, and relocated to FAR 44.201-3(b). Compared to the prior more specific list of requirements, the new list fails to address, for example, whether the contractor has complied with requirements for small business subcontracting and nonprofit purchasing, whether the contractor complied with applicable cost accounting standards in awarding the subcontract, and whether the subcontractor is on the SAM.gov excluded parties list.

The FAR Council consolidates the seven sections of subpart 44.3 related to Contractors’ Purchasing System Review (CPSR) into four subsections: Objectives; Requirements; Responsibilities for granting, withholding or withdrawing approval; and Notice. Sections related to the extent of review, surveillance, disclosure of approval status, and reports have been subsumed by the four new sections. Interestingly, the Practitioner Album states the subpart has been reorganized into five new sections, including FAR 44.301-5, Withholding or withdrawal approval, but the overhauled regulation does not include this section.

The new Subpart 44.4, Subcontracts for Commercial Products and Commercial Services, maintains the same requirements, but now breaks the subpart down into Preference (for commercial products and services), Flowdown (rules for clauses that flow down to subcontracts), and Inapplicable laws (laws that do not apply to commercial products and services) to improve readability.

FAR 44.201-1 and 44.202-2, which provide guidance on notice and consent best practices for commercial time and materials contracts, as well as FAR 44.303, 44.306, and 44.307, which provide procedures for Contractor Purchasing System Reviews, have been moved to the FAR companion guide.

FAR Part 45 – Government Property

There are minimal changes to FAR Part 45. The overhaul made no substantive changes, save for the relocation of certain guidance found at FAR 45.104(b) and (d), 45.201(d), and 45.606(b) to the FAR Companion.

Part 46 – Quality Assurance

FAR Part 46 was not substantially changed, and none of the changes substantially affect contractors. All existing clauses and definitions have been retained. Contractors should note that FAR 46.704, Authority for use of warranties, has been removed. The Practitioner Album’s explains that this language regarding approval for use of warranties need not be included as regulatory language in the FAR.

FAR Part 47 – Transportation

The overhaul retains the substantive requirements and subpart organization of the former FAR Part 47, while streamlining and removing procedural guidance. In addition to relocating a collection of non-statutory sections to the FAR Companion, 33 provisions and contract clauses have been removed.

FAR 47.102, Transportation Insurance, has been moved to the FAR Companion and reserved. The five paragraphs of the former FAR 47.103, Transportation Payment and Audit Regulation, have been reduced to a single sentence directing the reader to 41 CFR part 102-118 for details on the establishment of prepayment audits. The Practitioner Album and Line Out state that FAR 47.105, Transportation Assistance, has been relocated to the FAR Companion, but as of October 1, the overhauled text retains the full section.

Much of Subparts 47.2, Contracts for Transportation and Transportation-related Services, and 47.3, Transportation in Supply Contracts, has been relocated to the FAR Companion. For example, in subpart 47.2, many sections related to the planning and drafting of solicitations and contracts, as well as the more procedural requirements of subpart 47.3, have been relocated.

By contrast, subparts 47.4, Air Transportation by U.S.-Flag Carriers, and 47.5, Ocean Transportation by U.S.-Flag Carriers, were largely untouched, save for plain language edits and the removal of minor non-statutory requirements.

FAR Part 48 – Value Engineering

FAR Part 48 has been revised to reduce word count by nearly 70%. The FAR Council removed several provisions, either because they were already included in Part 52, or they have been moved to the FAR Companion Guide:

• Information covering how to implement value engineering approaches and principles covered by FAR 48.101(b) and FAR 48.103 that was not already covered in the clauses at 52.248-1 and 52.248-3 has been moved to the Companion Guide.
• Information on calculating profit or fees for value engineering change proposal savings that was covered by 48.102(e) has been moved to the Companion Guide.
• Information on establishing sharing periods and rates that was previously in FAR 48.104 has been moved to the Companion Guide.

The update removes definitions of “Government costs,” “negative instant contract savings,” and “net acquisition savings” from 48.001 Definitions but retains them in FAR 52.248-1. RFO FAR Part 48 retain the statutory requirements for value engineering (41 USC § 1711) and the value engineering entry at OMB Circular A-131, Value Engineering (note: The Practitioner Album references OMB Circular A-130 in error)..

Part 49 – Termination of Contracts

FAR Part 49 also did not undergo significant changes, given its statutory bases. The changes to Part 49 are largely rewording, streamlining sections, or adopting plain language. All existing contract clauses referenced in Part 49 have been retained.

Several provisions have been moved to the FAR Companion Guide:

• 49.108-7 Government assistance in settling subcontracts
• 49.113 Cost Principles
• 49.405 Completion by another contractor.

FAR Part 50 – Extraordinary Contractual Actions and the Safety Act

As the Administration made clear in Executive Order 14275, one of the RFO’s goals is to return the FAR to a statutory foundation and retain only those non-statutory procedures that are essential for sound procurement. The Practitioner Album emphasizes that Part 50 does not require revisions to meet that goal, as all subparts, sections, provisions and clauses are either based in statute or are essential for sound procurement. However, Part 50 has been rewritten, with over 500 words removed, in favor of plain language wording of those requirements and procedures.

FAR Part 52 – Solicitation Provisions and Contract Clauses

For now, the revisions to Part 52 track corresponding changes in other sections.

Moving forward, contractors should expect more changes aimed at eliminating non-statutory clauses and increasing procurement efficiency.

FAR Part 53 – Forms

RFO FAR Part 53 is substantially revised. The prior Part 53 contained a list of forms, both standard and optional, and requirements and information applicable to the forms. The revised version is significantly shortened, and the forms that were once in Part 53 have migrated to a new database at acquisition.gov/FARforms. RFO FAR 53.101 now directs readers to Parts 1 through 52 and to the database for specific form requirements. FAR 53.105 has been updated to reflect the digital age and permits that FAR forms can be computer generated without obtaining an exception from the FAR Council as long as there is no change to the name, content, or sequence of the data elements, and the form carries its number and edition date.

RFO FAR 53.108 states that the public may recommend new forms or changes to existing forms by submitting them to the FAR Secretariat. Agencies must submit recommendations for changes to Part 53 forms by following their specific agency procedures.

Per the accompanying Practitioner Album, the FAR Council is seeking to change FAR Part 53 from a static text to a “dynamic system that points to a live, authoritative resource.” While changes to Part 53 previously required the formal rulemaking process, the new database would allow FAR forms to be added, removed, and updated without formal notice and comment rulemaking.