OMB Advances Revolutionary FAR Overhaul with Formal Publication of Regulatory Changes

OMB Advances Revolutionary FAR Overhaul with Formal Publication of Regulatory Changes

Proposed changes will make common sense the hallmark of federal contracting and help the world’s largest buyer accelerate mission delivery, save money, and strengthen competition.

WASHINGTON, D.C. — The Office of Management and Budget (OMB) announced the first of three releases of proposed rules to implement the Revolutionary Federal Acquisition Regulation (FAR) Overhaul, marking the next major milestone in the most significant transformation of the Federal Acquisition Regulation (FAR) since its creation more than four decades ago.

“Federal acquisition should not be measured by how well people navigate paperwork. It should be judged by whether agencies can deliver capability faster, attract stronger competition, and get better value for the American taxpayer,” said OFPP Administrator Dr. Kevin Rhodes.

The proposed rules begin the formal process of embedding streamlined acquisition policies into the FAR after agencies began implementing those reforms through temporary deviations last year. Together, the proposed rules cover 17 FAR parts and advance a simpler regulatory framework written in plain language, more closely aligned with statute, and structured for speed.

The proposed rules emphasize value-driven strategies used by successful commercial businesses. Specific changes in this package include:

Replacing a detailed five-page directive-filled regulation on preparing written acquisition plans with a one-page practitioner tip sheet and regulatory authority to use oral acquisition plans where appropriate. 

Replacing a one-size-fits all mandate to coordinate with auditors on settlement proposals above $2 million stemming from terminations with a risk-based approach to determine where audits are needed.  This new common-sense approach is already saving months of time closing out lower risk settlements and allowing attention to be better spent protecting taxpayers on higher risk matters. 

The proposed rules also include an important new regulatory sunset process that involves the comprehensive review of rules with public input not less than every four years to prevent future wasteful growth of the FAR. 

The FAR Council intends to publish two additional proposed rule packages that will streamline the balance of the FAR, replacing decades of accumulated acquisition requirements with a procurement system that is clearer, faster, and better aligned with mission needs. Additional information on the Revolutionary FAR Overhaul, including proposed rules, implementation resources, and frequently asked questions, is available on acquisition.gov/far-overhaul.