Washington, D.C. – In a significant move today, the Office of Management and Budget’s Office of Federal Procurement Policy, alongside members of the FAR Council, unveiled a simplified regulatory framework for small business contracting, in a collaborative effort with the Small Business Administration (SBA). Small businesses are often viewed as the backbone of the U.S. economy.
Currently, there are approximately 34 million small businesses in the nation, accounting for over 40 percent of U.S. economic activity and generating two out of every three net new private sector jobs. This renewed focus on bolstering small business presence in the federal contracting arena is a key objective of the Revolutionary Federal Acquisition Regulation Overhaul (RFO), which aims to revert the FAR to its foundational principles. This transformation utilizes plain language while discarding unnecessary rules that do not contribute to effective procurement.
The newly released coverage simplifies processes and reduces hurdles for small businesses vying for contracts, while still upholding essential policies that require agencies to reserve new contracts when two or more competitive small businesses can undertake the work. Furthermore, the FAR revisions are designed to enhance competition within the 8(a) business development program, ensuring that small and disadvantaged businesses are equipped to secure work once they graduate from this program.
“The streamlining and sensible governance introduced by the RFO represents a once-in-a-generation opportunity for both agencies and the extensive community of small business contractors. This initiative will facilitate easier access for small businesses to the federal marketplace, allowing agencies to harness their talents to fulfill mission objectives,” stated Dr. Kevin Rhodes, senior advisor to OMB Director Russell Vought.
The ongoing efforts to preserve set-asides and enhance the competitiveness of 8(a) awards complement other recent regulatory simplifications by the FAR Council via the RFO, which aim to fortify small business engagement.
The SBA is committed to working closely with the FAR Council to maintain coherence between its updates to government-wide small business contracting rules and the latest changes made public today.
BACKGROUND
The Revolutionary FAR Overhaul is heralded as the most consequential reform to the FAR in its 41-year existence. As the FAR Council moves forward with the first phase of this overhaul, they have alleviated over 1,600 cumbersome requirements that previously burdened agencies and contractors alike. These reforms open doors for innovative small businesses, manufacturers, and new participants who have historically been sidelined from federal contracts.
The revised FAR and accompanying non-regulatory resources will collectively establish the Strategic Acquisition Guidance (SAG), providing a practical foundation that enables agile responses and effective delivery of mission capabilities.
Looking ahead, during the second phase of the RFO, the FAR Council will proceed with formal rulemaking and solicit public remarks via the Federal Register. The proposed regulations will draw from the initial phase’s deviations, community feedback from the RFO website, agency insights, and additional relevant contributions.
Key regulatory streamlining measures enacted by the FAR Council, which are projected to bolster small business involvement, include:
- A reduction of boilerplate government-specific mandates not mandated by statute or executive order for commercial work, lessening the burden for many contracts involving small business contractors;
- An increased reliance on simplified acquisition methods that will expedite the transition from solicitation to award, thereby reducing costs associated with carrying and other transactions;
- A more straightforward approach to accessing government-wide and agency-wide task and delivery order contracts by promoting “on-ramps” to existing contracts and set-asides for orders below these contracts, both recognized under the RFO as vital tools for sound procurement;
- A greater focus on post-award debriefings that will equip small businesses with critical insights needed to enhance their competitiveness in future bidding processes;
- Streamlined procedures that will ultimately ease the process for contractors to register and maintain their status to conduct business with the Federal Government via the System for Award Management;
- Highlighting non-regulatory best practices in the new FAR Companion and Practitioner Albums to expedite the adoption of methods that reduce barriers to small business engagement, including the use of technical demonstrations that allow small firms to showcase their capabilities akin to their approach in the private sector, rather than getting embroiled in expensive proposal-writing gambits.
Additionally, directives from the OMB, adopted as part of the RFO by the FAR Council, encourage agencies to consider government-wide contracts when procuring commercial products and services, which is poised to increase small business awards under contracts established by the General Services Administration (GSA). This includes the OASIS+ family of contracts, celebrated as premier government-wide agreements to procure services while fortifying the contractor base across HubZone small businesses, service-disabled veteran-owned small businesses, women-owned small businesses, and other small disadvantaged firms. OASIS+ encompasses a comprehensive range of professional, technical, and support services that are crucial for various governmental missions.
For further details regarding the RFO, visit: https://www.acquisition.gov/far-overhaul
