From Red Tape to Results: What Contractors Need to Know About the FAR Rewrite

Let’s face it—doing business with the federal government isn’t for the faint of heart. Between complex registrations, rigid compliance rules, and thousands of pages of acquisition regulations, even seasoned contractors have found themselves tangled in red tape. But change is on the horizon.

On April 15, 2025, the President issued a bold directive—an Executive Order to reform the Federal Acquisition Regulation (FAR), the sprawling set of rules that governs nearly every aspect of how the government buys goods and services. For contractors, this could be one of the most significant shakeups in decades.

So, what does this FAR rewrite mean for you? Is it just another policy update, or a real opportunity to improve how you do business with the government?

Let’s break it down.

What Is the FAR and Why Is It Being Rewritten?

The Federal Acquisition Regulation (FAR) is essentially the federal government’s rulebook for buying everything—from IT services to fighter jets, pencils to power plants. It was created more than 40 years ago with the goal of standardizing procurement processes across federal agencies.

And it’s grown. A lot.

Today, the FAR is over 2,000 pages long. Over time, the regulation has ballooned into an overly complex and burdensome system. It’s been criticized by lawmakers, federal agencies, and contractors alike as being inefficient, duplicative, and more of a barrier than a blueprint for effective purchasing.

Enter the April 2025 Executive Order, titled “Restoring Common Sense to Federal Procurement.” This order sets a clear mission: streamline the FAR, remove unnecessary provisions, and create a more agile and effective procurement system.

A Snapshot of the Executive Order: Key Takeaways

Here are some of the most impactful components of the Executive Order:

1. Simplicity and Efficiency First

The new policy mandates that the FAR should only include regulations that are:

• Required by law, or
• Essential to sound procurement and national interests

If a rule doesn’t check one of those boxes, it’s on the chopping block.

2. A Fast-Moving Timeline

Within 180 days, the FAR Council and the Office of Federal Procurement Policy (OFPP) must begin amending the FAR to reflect the new streamlined vision. That’s not a distant goal—it’s happening now.

3. Agency Alignment

Each agency has just 15 days from the Order’s issuance to assign a senior procurement official to collaborate on aligning their agency’s FAR supplements with the new reform goals. That means the changes won’t just stop at the FAR—they’ll ripple into agency-level rules too.

4. “Ten-for-One” Deregulation Policy

As new supplemental regulations are proposed, agencies must adhere to a policy of removing 10 outdated rules for every new one added (unless the new rule is mandated by law). This aggressive stance is designed to prevent future regulatory bloat.

5. Regulatory Sunset Clause

Even existing FAR provisions that survive the initial cut may expire after 4 years unless they are renewed. This ensures that the FAR stays lean and current, not bloated with outdated language.

What This Means for Government Contractors

These changes may sound procedural, but their implications for contractors are huge. Here’s how the FAR reform could directly impact your business:

1. A Less Onerous Procurement Process

The simplification of rules and removal of unnecessary compliance hurdles could mean:

• Shorter proposal development time
• Fewer “gotcha” clauses in RFPs
• Easier entry into the federal marketplace for small and mid-sized businesses

2. More Opportunities for New Entrants

With fewer hoops to jump through, the government is signaling that it wants to broaden the vendor pool. This is especially good news for:

• Disadvantaged and certified small businesses
• Vendors new to federal procurement
• Commercial companies with limited government contracting experience

3. Shifts in Agency Evaluation Criteria

As procurement rules simplify, evaluation practices may focus more on:

• Performance and innovation
• Best value rather than lowest price
• Past performance and capabilities

So, it’s a good time to invest in strong marketing materials—like a compelling Capability Statement and a standout SAM/DSBS profile.

4. Supplemental Regulations May Shrink

Agency-specific procurement rules (like the DFARS for DoD or the GSAM for GSA) are also under review. This means fewer “extra” compliance layers and potentially faster contract awards across agencies.

Risks to Watch

While this reform is promising, there are a few things to watch for as the FAR is rewritten:

• Uncertainty in the short term. As rules are being amended, deviations and interim guidance may make the procurement environment more dynamic (or even confusing) in the coming months.
• Adjustments to compliance procedures. While the long-term goal is simplification, contractors may need to adjust internal processes in the near term to stay aligned with evolving interim guidance.
• Procurement staff learning curve. Contracting officers will also be adapting to these new rules, and there could be bumps in the road while the new procedures are fully adopted.

What You Can Do to Stay Ahead

If you’re a current or aspiring federal contractor, don’t sit on the sidelines while this transformation unfolds. Here’s how to stay proactive:

✔️ Review Your NAICS Codes

Make sure your business is aligned with the correct NAICS codes. Choosing the wrong code can be a silent killer when it comes to eligibility and visibility.

✔️ Optimize Your SAM and DSBS Profiles

Agencies use these systems to find vendors—don’t let your first impression be an incomplete or outdated profile. Now is a good time to make sure your registration is current and optimized.

✔️ Update Your Capability Statement

If the rules are getting simpler, make sure your pitch isn’t overly complex. Highlight your core capabilities clearly and concisely.

✔️ Watch for FAR Council Updates

The Federal Register and acquisition.gov will publish new rules and deviation guidance as the FAR is amended. Stay subscribed or partner with a firm that monitors these updates for you.

✔️ Consider a Strategic Marketing Push

With fewer barriers, more vendors will enter the playing field. To stand out, you’ll need a strategy that includes:

• Targeted outreach to Contracting Officers
• Market research to find ideal opportunities
• Strong branding and collateral

The Bigger Picture: A Cultural Shift in Federal Buying?

At its core, this Executive Order isn’t just about cutting regulations—it’s about changing the culture of federal procurement. It’s about putting mission results ahead of paperwork. It’s about inviting more innovation, agility, and diversity into the federal supplier base.

It signals that the government no longer wants to be the hardest customer to work with—it wants to be a smart, accessible, and mission-driven partner.

For contractors, this is a window of opportunity. A chance to reset your strategy, reintroduce yourself to the marketplace, and grow your share of federal contracts.

Need Help Navigating the Transition?

At FedBiz Access, we’ve been helping businesses succeed in the government marketplace for over 24 years. From registration to award, we’re your partner in navigating changes like these and positioning your business for success.

Whether you’re brand new or looking to sharpen your approach during this time of transition, our team of experts is ready to help.

👉 Schedule a complimentary consultation with a FedBiz Specialist today. Let’s build your success—together.