Decoding the
FAR Overhaul

The Federal Acquisition Regulation (FAR) is undergoing significant revisions designed to streamline procurement processes and enhance efficiency within federal agencies. Recent Executive actions, including Executive Order 14275, “Restoring Common Sense to Federal Procurement,” have set the stage for a comprehensive overhaul of the Government’s acquisition system, with particular emphasis on the U.S. Department of Defense.

Our Decoding the FAR Overhaul site is tracking the “Revolutionary” FAR Overhaul and provides timely information on the overhaul process and the revised FAR Parts as they are posted to the Government’s FAR Overhaul website, ensuring that you are well-positioned to navigate the evolving regulatory landscape for federal acquisitions. Our Government Contracts Practice stands ready to advise contractors on the implications of the FAR Overhaul, how to learn about and adapt to the changing rules, and how to make their voices heard. 

Click a link to jump to one of the sections below:

Executive Order 14275
The FAR Overhaul
FAR Overhaul Approach
Strategic Acquisition Guidance
Key Takeaways on the RFO
Summary of Overhauled FAR Parts
FAR Part 1 (Federal Acquisition Regulations System)
FAR Part 10 (Market Research)
FAR Part 18 (Emergency Services)
FAR Part 34 (Major System Acquisition)
FAR Part 39 (Acquisition of Information and Communication Technology)
FAR Part 43 (Contract Modifications)

Executive Order 14275

On April 15, 2025, President Trump issued Executive Order 14275, “Restoring Common Sense to Federal Procurement,” initiating the most comprehensive overhaul of the Federal Acquisition Regulation (FAR) since its inception over 40 years ago. The Order identifies the current FAR as “an excessive and overcomplicated regulatory framework” that has resulted in “an onerous bureaucracy” and aims to transform it into a streamlined set of essential regulations. EO 14275 establishes a policy direction “to create the most agile, effective, and efficient procurement system possible” by directing that the FAR should contain “only provisions required by statute or essential to sound procurement.” The Order builds upon several other Trump Administration Executive Orders focused on deregulation across federal agencies and improving federal procurements.

The FAR Overhaul

EO 14275 initiated a “revolutionary” overhaul of the FAR. The Office of Federal Procurement Policy (OFPP) and the FAR Council, with the General Services Administration, have established a dedicated landing page on Acquisition.gov called the “Revolutionary FAR Overhaul” (RFO) website. This site serves as the central repository for revised FAR Parts as they are completed and includes:

• Links to “Latest News & Announcements”
• A feedback mechanism for each revised FAR Part through which stakeholders can provide feedback. The FAR Council won’t respond separately to the feedback but is expected to use it in developing the final FAR rules.
• Access to revised FAR Parts and agency deviations
• “Line out” documents showing text removed from original FAR Parts (but, notably, not the text added or revised within the Parts)
• Links to OMB and FAR Council deviation implementation guidance
• Placeholders for future “Buying Guides”

FAR Overhaul Approach

Timeline: EO 14275 sets an aggressive timeline – requiring the OFPP Administrator to work with the FAR Council to amend the FAR within 180 days (by October 13, 2025). Agencies were required to designate senior acquisition officials by April 30, 2025, and to identify FAR provisions inconsistent with the Order’s policy objectives.

Phased Implementation and a “Caveat”: The initiative employs a two-phase approach:

1. Immediate Implementation Through Class Deviations: The FAR Council issues model FAR deviation text on a rolling basis by FAR Part. Agencies are generally directed to issue agency-specific class deviations within 30 days of model text publication on the RFO website. The FAR Council also issued deviation guidance for agencies to follow.
2. Formal Rulemaking: Following issuance of all revised FAR Parts, the FAR Council will undertake formal rulemaking through the notice and comment process as required by 41 U.S.C. § 1707.

With the upload of revised FAR Part 10, the RFO website now also includes a “caveat” that the FAR Council-created deviations include clauses and provisions currently required by statute and Executive Order, but that OMB and the FAR Council will recommend statutory changes to Congress and suggest to the White House rescission of requirements stemming from Executive Orders that are inconsistent with the goals of Executive Order 14275 “to stop the inefficient use of American taxpayer dollars in federal procurement.” Any changes as a result of changes to Executive Orders or statutes will be reflected during the formal rulemaking process.

Strategic Acquisition Guidance

A key element of the RFO is moving non-statutory buying strategies out of the FAR and into OFPP-endorsed “buying guides.” These guides, together with the streamlined FAR, will be known as the Strategic Acquisition Guidance (SAG). According to GSA, the first buying guide will focus on Software-as-a-Service (SaaS) acquisitions, reflecting the Administration’s emphasis on modernizing technology procurement.

Key Takeaways on the RFO

• The RFO initiative represents the most significant transformation of federal procurement regulations in over four decades.
• The initiative provides a unique opportunity for contractors to provide feedback on the entirety of the FAR during both the deviation phase and formal rulemaking.
• Implementation through class deviations creates near-term uncertainty regarding which provisions apply to current and upcoming procurements.
• Contractors should prepare for potential contractual variability but may benefit from reduced administrative burdens in the long term.
• The initiative aims to better align federal procurement with commercial practices, potentially attracting new vendors to the federal marketplace.
• If you want a deep dive on the RFO rollout, you can get it here.

Summary of Overhauled FAR Parts

FAR Part 1 (Federal Acquisition Regulations System)

• Revised Guiding Principles: Emphasizes efficiency and empowers the acquisition workforce. For example, one new principle is that “the contracting officer must have the authority, to the maximum extent practicable and consistent with law, to determine how and when to apply rules, regulations, and policies on a specific contract.”
• Workforce Empowerment: Revised Part 1 counsels that “acquisition team members may assume that if a specific strategy, practice, policy, or procedure is in the best interests of the Government and is not addressed in the FAR, nor prohibited by law (statute or case law), Executive order or other regulation, then they are allowed to use the strategy, practice, policy, or procedure.”
• Sunset Provision: Establishes a four-year expiration date for all non-statutory FAR provisions unless renewed by the FAR Council.
• Streamlined Class Deviation Process: Simplified provisions for agency heads to authorize class deviations with removal of prior NASA and DOD-specific terms and exceptions.
• Revised Public Participation Terms: FAR Subpart 1.5’s provisions were replaced with a single sentence referencing 41 U.S.C. § 1707.
• Minor Changes to Former FAR Subparts 1.6 and 1.7: New Subpart 1.4 (Career Development, Contracting Authorities, and Responsibilities) and new Subpart 1.5 (Determinations and Findings) are similar to former Subparts 1.6 and 1.7.

FAR Part 10 (Market Research)

• Structure Simplified: FAR Part 10 originally contained four sections: 10.000 Scope of part, 10.001 Policy, 10.002 Procedures, and 10.003 Contract clause. The revised version eliminates the separate “Policy” and “Procedures” sections, combining essential elements into a more streamlined “Market research requirements” section.
• Content Eliminated: Several detailed provisions have been removed, including:
  1. Policy statements about ongoing market research for contingency operations, defense against attacks, and disaster relief.
  2. Procedures for conducting market research, including specific techniques and methods.
  3. References to querying the governmentwide database of contracts.
  4. Instructions about reviewing systems like the System for Award Management (SAM) and Federal Procurement Data System (FPDS).
  5. Guidance on customary commercial practices and buyer financing.
  6. Requirements for consideration of sustainable products and services.
  7. Specific references to considering consolidation and bundling deemed redundant to FAR Part 7.
  8. Requirements related to consulting with small business specialists and SBA procurement center representatives.
• Simplified Market Research Requirements: Revised FAR 10.001 establishes straightforward requirements for market research: (1) Agencies must describe their “legitimate” needs; and (2) Agencies must conduct market research appropriate to the circumstances before developing new requirements documents, soliciting offers for acquisitions over the simplified acquisition threshold, and awarding task or delivery orders over the simplified acquisition threshold.
• New Language on Industry Engagement: New Part 10 adds FAR 10.001(c) stating: “Agencies should engage in responsible and constructive exchanges with industry.” It further clarifies that agencies may use different strategies and methods to gather information, provided they comply with existing law and regulation and do not provide unfair competitive advantages or violate procurement integrity requirements.
• Minimizing Information Requests: The revision maintains and strengthens the principle that agencies should not request more than the minimum information necessary from potential sources, moving this requirement to a more prominent position in section 10.001(d).
• Priority Order for Commercial Products and Services: New section 10.001(f) establishes a priority order for procurement decisions. Agencies must procure commercial products and commercial services “to the maximum extent practicable” and must use market research to determine, in the following order of priority, whether:
  1. A commercial product or commercial service on an existing governmentwide contract can meet the agency’s requirements;
  2. The requirements could be modified to use an existing governmentwide contract;
  3. A commercial product or commercial service is available from another source;
  4. A commercial product or commercial service could be modified to meet the agency’s requirements; or
  5. The requirement can only be satisfied by a nondevelopmental item.
• Documentation Requirements: The documentation requirement is simplified to state only that “[a]gencies must document the results of market research in a manner that suits the acquisition’s size and complexity,” removing more prescriptive language from the previous version.
• Associated FAR Part 52 Clauses: Revised FAR Part 10 maintains the requirement to include the clause at 52.210-1 for noncommercial acquisitions over $6 million, but now explicitly references the statutory basis for this requirement (10 U.S.C. 3453(c)).
• Practitioner’s Album: The RFO website added a “Practitioner’s Album” for FAR Part 10, containing:

1. A summary of FAR Part 10 changes
2. FAR Part 10 Line-out documentation
3. “Smart Accelerators” guidance on conducting market research
4. Practitioner’s perspectives on the value of industry engagement
5. Links for the federal acquisition workforce for continuous learning

FAR Part 18 (Emergency Services)

• Simplified Structure: FAR Part 18 has been reduced to just two sections: 18.000 (Scope of part) and 18.001 (Emergency acquisitions), eliminating multiple subparts and detailed requirements.
• Content Eliminated: The overhauled version removes procedural guidance previously contained in the part, including: (i) definitions and procedures for different emergency authorities; (ii) specific contracting methods and techniques for emergency situations; (iii) extensive documentation and approval requirements; and (iv) separate treatment of contingency operations versus other emergencies.
• Flexibility-Based Approach: Revised Section 18.001(a) directs contracting officers to “use the flexibilities included in the FAR to respond quickly for an emergency or urgent need” and references a website called the “Emergency Procurement List” for available flexibilities (many of which were previously in the text of FAR Part 18).
• Streamlined Threshold Guidance: Section 18.001(b) consolidates guidance on micro-purchase and simplified acquisition thresholds by referencing FAR Part 2 definitions and listing five circumstances where thresholds may be raised: (i) supporting contingency operations; (ii) defending against or recovering from various attacks; (iii) supporting international disaster assistance; (iv) supporting emergency or major disaster response; and (v) supporting humanitarian or peacekeeping operations outside the United States.
• Commercial Product or Commercial Service Treatment: New Section 18.001(d) provides authority to treat any acquisition as commercial when the agency head determines the acquisition is to be used to help defend against or recover from cyber, nuclear, biological, chemical, or radiological attack.
• Local Preference: Section 18.001(e) maintains the requirement for award preference to local organizations when contracting for major disaster or emergency assistance under Stafford Act declarations, but removes detailed implementation procedures.
• Wavier of Ocean Transportation by U.S. Flag Vessels: Section 18.001(f) states that Cargo Preference Act provisions may be waived in emergency situations.

FAR Part 34 (Major System Acquisition)

• Reduced Administrative Requirements: Eliminated the requirement for written acquisition strategies by program managers.
• Simplified Procedures: Removed sections detailing competition, mission-oriented solicitation, and various contract types.
• Streamlined Process: Eliminated procedures for concept exploration, demonstration, full-scale development, and full production.

• Associated FAR Part 52 Clauses: Eliminated provisions include FAR 52.201-1 (Acquisition 360: Voluntary Survey), FAR 52.234-2 (Earned Value Management System Preaward Integrated Baseline Review), and FAR 52.234-3 (Earned Value Management System Postaward Integrated Baseline Review). FAR 52.234-1 (Industrial Resources Developed Under Title III of the Defense Production Act) is retained, but its numbering is inconsistently noted and FAR 52.234-4 (Earned Value Management System) remains unchanged.

FAR Part 39 (Acquisition of Information and Communication Technology)

• Clarification of Scope: The revised Part 39 has been renamed from “Acquisition of Information Technology” to “Acquisition of Information and Communication Technology.” According to the accompanying Practitioners Guide, the scope has been clarified to include not only “information and communication technology (ICT),” but also “new and emerging technologies” as well as “Internet of Things” (referred to in the revised rule as “supplies and services that use ICT”). The revised part also includes language that “emphasizes strategies that promote faster acquisition and secure deployment of technology refreshment techniques.”
• Restructured Content: The revised Part 39 has been restructured to address three phases in the acquisition of ITC:
  • The Pre-Solicitation phase, which addresses requirements related to “Management of risk” (significantly streamlined compared to the current version); use of “Modular contracting” (required by statute and largely the same); prohibition on use of labor category qualifications when acquiring “Information technology services” (now discretionary); and criteria for applying “accessibility standards” under Section 508 (also required by statute and largely the same); and
  • The Evaluation and Award phase as well as the Post-Award phase, both of which address agencies’ assessment of Section 508 compliance.
• Deleted Content: The revised Part 39 deletes a number of provisions that are obsolete, are not required by statute, or are to be addressed elsewhere in the FAR or other non-regulatory guidance (e.g., Practitioners Albums, Buying Guides), including:
  • FAR 39.105 (Privacy) and FAR 52.239-1 (Privacy or Security Safeguards) have been deleted as outdated and redundant with the requirements in FAR Subpart 4.19, Basic Safeguarding of Covered Contractor Information Systems;
  • Prohibitions imposed under FAR Subparts 4.20 (Kaspersky prohibition), 4.21 (Section 889 prohibition), 4.22 (prohibition on ByteDance), 4.23 (FASCA orders), and FAR Part 40 (Information Security and Supply Chain Security) have all been deleted from Part 39 as redundant; and
  • References to OMB Circular No. A-130, “Managing Information as a Strategic Resource” (to be addressed in non-regulatory guidance) as well as OMB Circular A-127, “Financial Management Systems” (outdated) have been deleted.
• Practitioners Album: Finally, the revised Part 39 is accompanied by a “Practitioners Album” which includes a line-out and summary of the changes made in the revised Part 39, as well as additional guidance and best practices for the acquisition of ITC.

FAR Part 43 (Contract Modifications)

• Simplified Structure: FAR Part 43 is modestly revised. It retains its four-subpart structure but with relatively minor adjustments focusing on essential modification procedures and authorities.
• Content Eliminated: The overhauled version generally removes commentary on contractor accounting systems and streamlines the process for change order documentation, primarily by eliminating guidance for “field pricing reviews” in new FAR 43.304
• Core Features Retained: Although the part is renumbered, many of the key provisions are retained. For example, FAR 43.201 retains the definition of an “administrative change,” the types of changes (bilateral and unilateral) in overhauled FAR 43.203 are the same, the policy that only contracting officers may execute modifications persists in FAR 43.202, notice requirements are retained in FAR 43.204, and the requirement that funds must be available is retained in FAR 43.205.
• Changes Clauses Retained: Section 43.305 maintains the full suite of Changes clauses (52.243-1 through 52.243-6) with their various alternates for different contract types, reflecting their importance to contract administration.
• Contract Modification Authority Decision Help Guide: The Smart Accelerators portion of the Practitioner’s Album for Part 43 includes a decision tree to assist contracting officers in determining the authority for a change and completion of the retained Standard Form (SF) 30.