Common sense is set to become a cornerstone of federal contracting, aiming to enhance mission delivery, reduce costs, and boost competition for the world’s largest buyer.
WASHINGTON, D.C. — The Office of Management and Budget (OMB) has announced the first in a series of three proposed rule releases as part of the Revolutionary Federal Acquisition Regulation (FAR) Overhaul. This marks a pivotal step in the most comprehensive update of the Federal Acquisition Regulation (FAR) since it was established over 40 years 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,” stated OFPP Administrator Dr. Kevin Rhodes.
The proposed rules initiate the formal integration of streamlined acquisition policies into the FAR, following earlier implementation through temporary deviations by agencies last year. These proposed rules, covering 17 parts of the FAR, aim to establish a more straightforward regulatory framework, written in plain language, which aligns more closely with legal statutes and prioritizes speed.
The proposed changes focus on value-driven strategies employed by leading commercial enterprises. Notable modifications in this proposal include:
- Replacing a complex five-page regulation on the creation of written acquisition plans with a concise one-page practitioner tip sheet, along with the authority to use oral acquisition plans when suitable.
- Substituting a universal requirement to involve auditors in settlement proposals over $2 million from terminations with a risk-based method to decide where audits are necessary. This practical approach is already reducing the time needed to conclude lower-risk settlements, allowing more focus on protecting taxpayers in higher-risk situations.
The proposed rules also introduce a crucial new regulatory sunset process, which mandates a comprehensive review of rules with public input at least every four years to avoid unnecessary growth of the FAR.
The FAR Council plans to release two additional proposed rule packages aimed at simplifying the remainder of the FAR. This will replace decades of accumulated acquisition requirements with a procurement system that is clearer, faster, and better aligned with mission objectives. Further details on the Revolutionary FAR Overhaul, including proposed rules, resources for implementation, and FAQs, can be found at acquisition.gov/far-overhaul.
