The Office of Federal Procurement Policy Launches Landmark Update to FAR, Ushering in a New Era for Commercial Buying

Summary

The Office of Federal Procurement Policy (OFPP) announced the most significant rewrite of the Federal Acquisition Regulation (FAR) in over 40 years as part of the Revolutionary FAR Overhaul (RFO). The update returns the FAR to its statutory roots, streamlines commercial buying, and removes non-statutory requirements that do not improve contract outcomes. Agencies can immediately eliminate roughly one-third of non-statutory contract requirements and adopt simplified procedures to accelerate access to commercial solutions, including those from small businesses and new entrants. OFPP also rolled out practitioner resources and directed greater use of government-wide “best-in-class” and “preferred” contracts. Future RFO releases will target emerging technologies, pricing transparency, and agency accountability.

Key topics

• Scope and intent of the Revolutionary FAR Overhaul (RFO) and its “plain language” rewrite focused on statutory foundations.
• Immediate deregulation allowing agencies to eliminate about one-third of non-statutory requirements in future contracts.
• Emphasis on commercial buying and reducing red tape to improve value, delivery speed, competition, and small business participation.
• Direction to use “best-in-class” and other preferred government-wide contracts, with new criteria aligning to Administration priorities.
• Retirement of FAR Parts 38 and 51; modernization and consolidation of procedures into an updated FAR Part 8.
• Centralization of supply chain security policies into a single FAR part to improve usability for agencies and contractors.
• Simplifications to System for Award Management (SAM) registration and maintenance for contractors.
• Practitioner resources: FAR Companion Guide, Practitioner’s Albums, Category Guide; together with the streamlined FAR form the Strategic Acquisition Guidance (SAG).
• Progress metrics and outlook: relief from 500+ burdensome requirements to date, with 1,000+ expected by completion; upcoming focus areas include emerging tech and pricing transparency.

Notable quotes

• “The old rules were built for paperwork; the new rules are built for performance. With each deviation, we’re clearing out red tape and making space for better value, timely delivery, and more robust competition. This will open the door for increased participation by innovative small business manufacturers, new entrants, and others who have not traditionally been willing or able to work with our agencies,” — Dr. Kevin Rhodes, senior advisor to OMB Director Russell Vought.
• Described as the most significant reform to federal commercial buying procedures “in over four decades.”