Biggest FAR Overhaul in 40 Years

On August 15, 2025, the Office of Federal Procurement Policy (“OFPP”) at the Office of Management and Budget (“OMB”) announced the most sweeping changes that the Federal Acquisition Regulation (“FAR”) has experienced in the preceding four decades.  The OMB is seeking to minimize the hoops contractors must jump through to work with the federal government.  It believes that these changes will spur increased participation by small business manufacturers, new entrants, and others who have not traditionally been willing or able to work with the federal government.

“Clearing Out Red Tape”

To begin, the White House immediately authorized agencies to begin eliminating one-third of requirements from future contracts that are not required by statute, executive order, and/or have little to do with contractual outcomes.  At this point, the FAR Council has removed over 500 requirements.  It is expected that when the overhaul is complete, more than 1,000 requirements will be eliminated.

FAR Resources to Be Released

Along with this change, the OFPP and FAR Council are planning to release three documents relevant to contracting with the federal government:

• The FAR Companion Guide;
• The Practitioner’s Albums; and
• The Category Guide.

These documents will help achieve OFPP’s goals by providing tips and tools from experienced government contractors to get better contract outcomes.  The Category Guide will also help explain the “Best in Class” and “Preferred” government contracts (discussed below).

“Best in Class” and “Preferred” Contracts

While spurring competition, the Administration is also attempting to streamline buying procedures.  The OFPP has directed agencies to use government-wide contracts (“GWACs”) categorized as “Best in Class” or “Preferred” to satisfy their commercial needs, rather than relying on individual agency-level contracts.  These categorizations will ensure the government is getting the best deal on the goods and services it purchases, benefiting taxpayers.

Currently, “Best in Class” contracts are a preferred government-wide solution because they meet high standards of pricing and performance.  The OFPP plans to establish new criteria for the “Best in Class” contracts.  Agencies will be required to initially fulfill their needs through “Best in Class” contracts, before moving onto “Preferred.”  If necessary, they can then establish their own contract or purchase goods from outside these two sources.