From Idea to Implementation: Starting the Process To Amend the FAR

In the administration’s first 100 days in office, multiple executive orders (EO) were signed to update federal procurement. Several initiatives released across the federal market include the OneGov Strategy, procurement consolidation and the Army Transformation Initiative. The latest action is a complete overhaul to the Federal Acquisition Regulation (FAR) in response to the April 15th EO 14275, “Restoring Common Sense to Federal Procurement”.

There are three primary aims the FAR EO calls for:

1. The appropriate amendment action and elimination of excessive acquisition regulations not required by statute within 180 days.
2. Agencies to work with the Office of Federal Procurement Policy (OFPP) and the FAR Council to align and streamline agency-specific FAR supplements with the FAR reform efforts.
3. When a new final rule is issued for the FAR, any provisions not required by statute will expire after four years without renewal.

As of May 2, 2025, the first round of documents has been released addressing regulation changes to the FAR. The FAR contains principal rules and guidelines for the federal acquisition system and is an authority governing acquisitions of goods and services by executive branch agencies. It is organized into Parts 1-53 and is divided into further subparts and subsections addressing different aspects of federal procurement.

According to the OMB memo, the initiative will involve a “series of government-wide and agency-level actions that move federal buyers away from a regulatory-based, compliance-driven mindset to a more practical, efficient and timely problem-solving approach.” The official Revolutionary FAR Overhaul initiative is being led by the OFPP, in coordination with FAR Council members including, the General Services Administration (GSA), National Aeronautics and Space Administration (NASA) and Department of Defense (DOD).

There were three sections of the FAR addressed in the initial round of the overhaul effort, primarily by considerably reducing the original length, simplifying language and removing non-statutory rules. The first is FAR Part 1, which describes the federal acquisition regulation system and was revised by removing duplicative regulations and creating more straightforward buying guides for acquisition teams. While sticking to its statutory roots, it encourages acquisitions teams to follow strategies in the best interest of the government, even if not specifically addressed in the FAR. Companies should be communicating with contracting officers and acquisition teams to understand how they can adapt and utilize these new regulations, as well as demonstrating how their solutions are cost-effective and in the best interest of the government.

Part 34 is the second part addressed, which covers major systems acquisitions and earned value management. The goal of the revision is to reduce the amount of paperwork and compliance documentation, cutting red tape to focus on clearer and more flexible requirements. One example of this is specifically around the elimination of several provisions for the use of Earned Value Management Systems (EVMS), essentially allowing the flexibility of judgement for system compliance to be made by acquisitions teams. By clarifying and simplifying complicated compliance requirements, there will be a reduced burden on vendors and partners for compliance documentation. Technology companies can take advantage of the reduced burden to create more opportunities to accelerate innovation and respond to competition in the marketplace. 

In the revisions made to Part 52, which covers solicitation provisions and contract clauses, there are significant reductions to language as well. The breadth of contract clauses and provisions has often been a hinderance to the speed of acquisition process. However, the new approach shifts the decision-making authority to contracting officers and acquisition teams to allow freedom to exercise their own initiative and business judgement when applying contract clauses and provisions. With new FAR regulations, it is encouraged for acquisition teams to pursue new and creative approaches to streamline buying goods and services that are most advantageous to the government. Consequently, vendors and partners may see increased potential to speed up the acquisition process, new acquisition strategies and the implementation of a more risk management approach rather than strict compliance in the buying process. 

It is important to note, these changes are to be implemented immediately as the government issues class deviations for procurement shops. The remainder of the FAR overhaul will be released on a rolling basis along with the model deviation guidance to kickstart FAR streamlining. Agencies are adapting to new guidance for FAR supplements and will be reporting on the implementation of the deviations released to date starting July 15. As industry waits for the remainder of updates to be made to buying guidance supplements, there are a few things to watch out for in the coming weeks and months. Industry should expect to see faster acquisitions and a potential increase in competition as streamlined regulations may attract new market entrants. Technology companies will also be impacted by newly expected buying guides focused on technology, infrastructure and national defense, which will likely fall in line with the continued focus on commercial and cost-effective solutions. To be successful, it will be vital for companies to stay informed, communicate with their contracting officers and demonstrate cost-effective value in their solutions.

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About the Author:
Nikki Hamlin is a senior analyst on the TD SYNNEX Public Sector Market Intelligence team covering trends across the federal market. Nikki has more than 8 years of experience in federal procurement research and analysis, providing critical insights to support businesses in making informed decisions across civilian and defense agencies.