FAR Council Issues Second Round of FAR Overhaul Proposed Rules Covering 16 FAR Parts: Analysis of Proposed Parts 8, 12, 13, 15, 16, 17, 35, 38, 44, and 51, Plus Associated FAR Part 52 Clauses

September 25, 2026

NOTE: This is the second of two installments of Wiley’s analysis covering proposed rules issued by the FAR Council on September 18, 2026. Our first installment was issued on September 23, 2026.

What: The Federal Acquisition Regulatory Council (FAR Council) issued the second set of proposed rules to implement Executive Order (EO) 14275, Restoring Common Sense to Federal Procurement, covering 16 parts of the Federal Acquisition Regulation (FAR), plus the related clauses in Part 52. (The proposed rules can be found here, here, here, and here.) The FAR Council has now initiated eight of 12 proposed rulemakings that collectively will rewrite the entire FAR. The formal notice-and-comment rulemakings represent Phase Two of the “Revolutionary FAR Overhaul” (RFO) process that began in 2025, when the FAR Council began posting model class deviations to each FAR Part that virtually all federal agencies have adopted.

This second installment of our analysis covers the proposed changes in FAR Cases 2026-003 and -006, covering FAR Parts 8, 12, 13, 15, 38, 44, and 51, plus the associated FAR Part 52 clauses and Parts 16, 17 and 35, plus the associated FAR Part 52 clauses, respectively. The first installment covered FAR Cases 2026-010 and -011, covering FAR Parts 14, 28, and 36, plus the associated FAR Part 52 clauses and Parts 9, 27, and 47, plus the associated FAR Part 52 clauses, respectively. 

When: The proposed rules were published in the Federal Register on September 18, 2026, with comments due 30 days after publication (October 19, 2026). The proposed rules do not state when the FAR Council expects to issue final rules or when those final rules will become effective. The shortened comment period indicates the FAR Council intends to move quickly.

What It Means for Contractors: The biggest impacts to contractors from these proposed rules are likely to arise from the changes in FAR Parts 12 and 15, which streamline and reduce procurement requirements for the acquisition of commercial products and services and significantly revise the regime for communications with contractors during a procurement. An overview of key revisions in the two FAR Cases covered by this alert is below.

FAR Case 2026-003 addresses the overhaul of FAR Parts 8, 12, 13, 15, 38, 44, and 51, along with the related clauses in Part 52.

• The FAR Part 8 proposed rule largely codifies the framework of the model deviation text and continues its reorganization and simplification efforts such as removing guidance related to programs governed by other regulatory schemes. Consistent with the deviation text, the proposed rule relocates Part 51’s contractor access requirements to Part 8, transfers Federal Supply Schedule ordering procedures to GSA’s FAR supplement, and removes vehicle leasing clauses. Consistent with this proposed rule, on September 22, 2026, GSA published a proposed rule to move the ordering procedures from the FAR to the General Services Administration Acquisition Regulation (GSAR) and direct ordering activities to use the GSAR procedures for Schedule orders.

The proposed rule continues the emphasis on using existing contract vehicles rather than soliciting and awarding new contracts, beginning with mandatory use of (to-be-designated) governmentwide “required use” contracts or Blanket Purchase Agreements (BPAs), followed by consideration of “best in class” and other existing contracts and BPAs when the agency’s needs cannot be met by a “required use” vehicle. Under proposed FAR 8.104, the head of the contracting activity must approve exceptions to the mandatory use of “required use” vehicles. Agencies also must authorize contractors to obtain supplies on the AbilityOne Procurement List from DLA, GSA, and VA if the items are available through those agencies’ distribution facilities. Similarly, agencies must obtain supplies on the Procurement List from DLA, GSA, or VA distribution facilities if available, or otherwise from the designated nonprofit agency.

• Proposed FAR Part 12 retains the deviation’s reorganization to follow the acquisition lifecycle and consolidation of all commercial acquisition requirements into Part 12 as a “one-stop shop.” The proposed rule revises language in Part 12 to emphasize the statutory mandate to procure commercial products and services, such as renaming FAR 12.101 as “Requirements” and rephrasing the policy provisions as directives. Consistent with proposed FAR Part 1, proposed FAR 12.201-1(c) and (d) encourage agencies to use additional innovative approaches and flexibilities to procure commercial products and services. The proposed rule also maintains the deviation text’s clarification that construction may be procured as a commercial service; proposed FAR 12.200(b) clarifies that Part 12 operates with Part 36 for those acquisitions.

In response to comments that the FAR deviation did not address small business set asides for purchases above the micro-purchase threshold but below the simplified acquisition threshold (SAT), proposed FAR 12.103(b) clarifies that all acquisitions above the micro-purchase threshold must be set aside if required by FAR 19.104-1.

Proposed FAR 12.107 adds an exception to the FAR deviation’s restriction on requiring noncustomary software information. The Government may require documentation of specific modifications to commercial software or its documentation that are made at government expense to meet solicitation requirements. Vendors would need to price any resulting nonstandard documentation requirement. Additional software rights would still require mutual agreement.

Proposed FAR 12.201-1 caps individual purchases under single-award BPAs at the SAT and retains the deviation text’s $9 million or authorized $15 million ceilings for orders under BPAs with multiple suppliers.

Responding to complaints about duplicative guidance across Parts 5 and 12, proposed FAR 12.202 places more commercial notice requirements directly in Part 12. It also extends the default combined synopsis/solicitation requirement from acquisitions above the SAT to those expected to exceed $20,000. Exceptions remain, including pre-solicitation notices that may be followed by direct solicitation at or below the SAT.

Proposed FAR 12.205 replaces the FAR deviation’s clause tables with individual prescriptions for inclusion of clauses that expressly authorize commercial use. Although the RFO website indicates the intent of this change is to prevent inclusion of clauses not intended for commercial contracts, proposed FAR 12.205(c)(2) permits agencies to include clauses lacking an express commercial prescription through an individual or class deviation. Contractors would need to check both the prescription and any applicable deviation to determine if a clause is appropriately included in a commercial contract. The proposed rule also allows agencies to tailor provisions and clauses, but they must identify such tailoring. Certain provisions, such as paragraphs (b) and (c) of FAR 52.212-2, addressing options and contract formation, cannot be tailored. As in the deviation text, the proposed rule removes FAR 52.212-3 and 52.212-5.

• Proposed FAR Part 13 maintains the major revisions of the deviation text, which moved much of the part to Part 12, and makes two new substantive changes in response to public comments. First, contracting officers (COs) are no longer required to make formal Determinations and Findings that only one source is reasonably available before proceeding with a sole source acquisition under this part. Instead, they need only “[d]ocument the decision and the basis for the decision to conduct a sole source acquisition.” The preamble states that this change “reduces the administrative burden on COs while maintaining necessary accountability.” Second, the proposed rule adds solicitation and publication guides for COs, which are intended to reduce the need to cross-reference FAR Parts 5 and 12. The proposed rule also transfers the fast payment procedures in Subpart 13.4 to FAR Part 32.
• Proposed FAR Part 15 includes several substantive revisions, in addition to retaining the deviation’s “quality of life” changes to wording and reorganization to follow the acquisition lifecycle.

In the presolicitation and solicitation phase addressed in proposed FAR Subpart 15.1, the proposed rule deletes references to early exchanges with industry that were in original FAR 15.201 and deviation FAR 15.101 and consolidates those activities with the acquisition planning provisions in proposed FAR Part 7. The proposed rule streamlines the instructions related to phased acquisitions, now located at proposed FAR 15.102-4, and provides significantly more detail on acquisitions using an advisory multistep process under proposed FAR 15.104-8, which some agencies have used for several years. It also adds prescriptions to proposed FAR 15.109 for including clauses in solicitations and contracts, particularly those involving procurement of commercial products and services. Proposed FAR 15.106 revises the long-standing “late is late” rule to conform with proposed Part 12 and its deviation text: COs may accept late proposals received before award when doing so is in the Government’s best interest and would not unduly delay the acquisition. Nonetheless, contractors should still prepare to submit proposals on time rather than rely on this discretionary authority.

The definitions in proposed FAR 15.001 and the related provisions in proposed FAR 15.202 and 15.204 continue the deviation FAR’s changes to how the Government and offerors communicate during an acquisition. Consistent with the deviation text, “discussions” are replaced by “negotiations,” and the opportunity to respond to adverse past performance information may occur only during clarifications, which are entirely discretionary. Under the proposed rule, clarifications provide offerors an opportunity to resolve minor errors or clarify aspects of a proposal, but they do not “result in an opportunity for offerors to submit a proposal revision,” which can be requested or allowed only “as the result of negotiations.” In addition, the CO can request additional information during clarifications “provided it does not alter the cost/price or other material elements of the proposal or cure a material omission in the proposal,” suggesting that minor changes to a proposal could be permitted during clarifications. The proposed rule does not explain the difference between clarifying an aspect of a proposal, including by submitting additional information, and providing a proposal revision. Proposed FAR 15.204-2(b)(2) maintains the deviation’s authorization for COs to (i) “further negotiate” with only one offeror without negotiating with other offerors and (ii) negotiate for increased performance above mandatory minimums or lowered performance above the minimums in exchange for a decreased price.

The proposed rule tracks the deviation text on award and postaward procedures, contracting pricing, and unsolicited proposals with minor wording changes.

• The proposed rule eliminates FAR Part 38 in full to avoid duplication with the rules and procedures for the Federal Supply Schedules program in Subpart 538.2 of the GSAR.
• Proposed FAR Part 44 features few changes from the model deviation text. The proposed rule reinserts original FAR language cautioning that designating subcontractors during contract negotiations does not necessarily satisfy advance notification and consent requirements. The proposed rule also adds clarifying language to ensure COs insert the appropriate subcontracting clause based on the nature of the prime contract. Notably, the FAR Council did not clarify the Part 44 definitions of “subcontract” or “subcontractor,” retaining the current, arguably ambiguous FAR Part 44 definitions for those terms.
• The proposed rule eliminates FAR Part 51 in full and moves those policies to Part 8.

FAR Case 2026-006 includes the overhaul of Parts 16, 17, 35, and the relevant clauses in FAR Part 52.

• Proposed FAR Part 16 maintains the major revisions from the model deviation text (as discussed in our previous alert) and makes several additional substantive changes related to selecting contract types. Consistent with Executive Order 14402, Promoting Efficiency, Accountability, and Performance in Federal Contracting and the class deviation, the proposed rule adheres to the preference for fixed price contracts and imposes additional justification and approval requirements if using other than fixed price and firm-fixed price, level of effort contracts. The proposed rule clarifies that agencies may procure consumption-based solutions, which will be considered a firm-fixed price contract, where supplies and services are billed based on actual use of fixed-price units. In addition, the proposed rule reflects the shift from a restrictive to permissive framework in contract type selection, including by adding Alternate I to FAR 52.216-1, Type of Contract, which would allow offerors an opportunity to propose an alternative contract type. Under the proposed rule, when selecting a contract type, agencies will be required to assess whether the Government’s resources are adequate to plan for, award, and administer the selected contract type.

Additionally, proposed FAR Part 16 creates a new post-award notification and brief explanation requirement at FAR 16.607-4 for task and delivery orders valued between the SAT and $7.5M. The proposed rule clarifies that the brief explanation “would not provide a debriefing at the level of detail currently afforded to unsuccessful awardees over $7.5 million, however, this information is expected to benefit entities by improving future offers.”

• Proposed FAR Part 17 replaces the five-year period of performance cap on contracts for supplies and services and instructs agencies to follow applicable statutory or regulatory limits on contract duration. It also provides additional flexibility for COs seeking to increase the quantity ordered or extend the period of performance. The proposed rule revises FAR 52.217-6, Option for Increased Quantity, and FAR 52.217-7, Option for Increased Quantity – Separately Priced Line Item, to allow the clauses to be used in contracts for the purchase of services and when procuring additional requirements during contract performance. Proposed FAR Part 17 also revises FAR 52.217-8, Option to Extend Services, to allow the clause to be used with task and delivery orders for requirements other than services. Finally, proposed FAR Subpart 17.8 establishes a new definition of “complex, specialized, or substantial design and construction services” and prohibits the use of reverse auctions when procuring such services.
• According to the FAR Council, the revisions to FAR Part 35 are not expected to have a significant impact on contractors, subcontractors, or the Government. Proposed FAR Part 35 clarifies that the purpose of research and development contracts is to advance scientific and technical knowledge and apply that knowledge to achieve agency and national goals. The proposed rule also clarifies when a contract, grant, cooperative agreement, or other transaction should be used. Proposed FAR Part 35 removes language on providing solicitations to a reasonable number of technically qualified sources and requires the Government to continually search for and develop information on competitive sources. Finally, the proposed rule clarifies that the Government may use the evaluation procedures in FAR Part 35 alone or in conjunction with the evaluation procedures in FAR Part 15.

Wiley’s Government Contracts Practice has provided timely breakdown and thought leadership on every aspect of the FAR and DFARS overhaul on its FAR and DFARS Overhaul site and will continue to report on this second phase of the FAR overhaul process.

Caleb McClay, an Associate at Wiley Rein LLP, contributed to this alert.