The Revolutionary FAR Overhaul (RFO) continues to progress.

Article by: Nicholas Perry, Associate & Aiden McCabe, Summer Associate

The Revolutionary FAR Overhaul (RFO) continues to progress. On June 23, 2026, the FAR Council launched Phase II of the initiative through the release of four coordinated rulemakings that collectively revise more than 20 FAR parts. According to the FAR Council, these changes will simplify and modernize the federal procurement system by rewriting the FAR in plain language, aligning its structure with the acquisition lifecycle, eliminating duplicative and non-statutory requirements, and shifting detailed procedures to non-regulatory guidance. The proposed rules also introduce substantive changes to the FAR, such as increased approval thresholds for certain sole-source awards (reflecting a provision of the FY26 National Defense Authorization Act) and accelerated timelines for submission of termination settlement inventory schedules and proposals.  

Overall, this is not just a reshuffling of previous regulations. According to the FAR Council, the changes announced in these rulemakings represent a significant transition from a prescriptive, compliance-driven regime to a more flexible, principle-based system that seeks to expand contracting officer discretion, reduce administrative burden, and reshape how contractors and agencies interpret and apply FAR requirements.  

Comments from the public and industry are due by July 23, 2026. 

Focus on Flexibility, Speed, and Efficiency in Public Procurement. A recurring RFO theme, also reflected in these proposed rules, is channeling requirements through existing contract vehicles rather than conducting brand new procurements (which can be longer and more costly). This is most evident in revised FAR Part 7, which is reorganized around tailored acquisition planning and which now emphasizes the use of existing contract vehicles and the earlier consideration of modified or commercial solutions.  

Another example of the FAR Council’s focus on speed and efficiency is proposed FAR Part 33, which adds a new purpose statement for the bid protest system that emphasizes the “efficient resolution of protests,” minimization of “disruption to contract awards,” and the quick resolution of procurement errors. Proposed Part 33 also removes text duplicating the Government Accountability Office’s (“GAO”) bid protest regulations and points users to 4 CFR Part 21 (the GAO’s regulations), reducing the risk of discrepancies between the FAR and the GAO’s rules. 

Consolidation of Security and Supply-Chain Requirements. Proposed FAR Part 40 consolidates national security and supply-chain security requirements into one part, harmonizes the “reasonable inquiry” standard used to assess contactors’ efforts to comply with certain security prohibitions and exclusions, and standardizes a 72-hour reporting timeframe for various security disclosure and reporting requirements. It also includes new provisions of the FAR implementing a prior rulemaking related to the government’s Controlled Unclassified Information (“CUI”) Program as it relates to contractors. The proposed rule creates new solicitation and contract provisions that require contractors to, for example, report CUI incidents and comply with federal cybersecurity standards. 

Reduction of Administrative Burden on Contractors. FAR Part 4 streamlines the current contractor registration and reporting system by keeping entity-level representations/certifications (e.g., size, socioeconomic status, etc.) in the online System for Award Manage (“SAM”) while moving procurement-specific ones into solicitations. Specifically, FAR 52.204-8, Annual Representations and Certifications, is removed in its entirety, SAM provisions consolidating entity-level obligations are revised, and reporting for commercial acquisitions are reduced by excluding several existing Part 4 clauses. Ultimately, the FAR Council’s goal seems to be easing SAM-profile maintenance and cutting recurring update requests. 

Finally, there is also a continued focus on clarifying the “new” FAR’s text to make it simpler and more usable for contractors. For example, the proposed rules simplify and clarify FAR Part 6, Competition Requirements, without substantively changing competition policy or procedures, by removing redundant text, focusing on core statutory authorities for other-than-full-and-open competition, and updating justification and authorization thresholds.