Breaking Down the New FAR Part 1 Overhaul: What Government Contractors Need to Know

The Federal Acquisition Regulation (FAR) serves as the cornerstone of federal procurement, guiding how government agencies acquire goods and services. In 2025, a significant rewrite of FAR Part 1 is underway, aiming to modernize and streamline the acquisition process. This overhaul presents both opportunities and challenges for government contractors. Let’s delve into the key changes and their implications.

Understanding the FAR Overhaul

The Office of Federal Procurement Policy (OFPP) and the Federal Acquisition Regulatory Council (FAR Council) have initiated a comprehensive review of the FAR, with the first phase focusing on Parts 1, 34, and 52. The primary objectives are to:

• Simplify regulations to reduce administrative burdens.
• Encourage innovation and flexibility in procurement.
• Enhance the efficiency and effectiveness of the acquisition process.

This initiative aligns with the broader government effort to reform procurement practices, as highlighted in recent executive actions emphasizing speed and flexibility in acquisitions .

Key Changes in FAR Part 1

1. Guiding Principles Emphasizing Mission and Efficiency The revised FAR Part 1 underscores the importance of meeting agency missions efficiently and effectively. It promotes:
   • Prioritizing commercial solutions over custom-built ones.
   • Delegating decision-making authority to the lowest appropriate level.
   • Encouraging innovation and risk management rather than risk avoidance.
   These principles aim to foster a more agile and responsive acquisition environment .
2. Regulatory Sunset Provisions A notable addition is the introduction of a four-year sunset clause for non-statutory FAR provisions. This means that any regulation not required by law will automatically expire unless renewed, ensuring that outdated or unnecessary rules are periodically reviewed and either updated or eliminated.
3. Streamlined Agency Acquisition Regulations Agencies are now encouraged to avoid redundant or conflicting regulations. Any deviations from the FAR must be justified and documented, promoting consistency across federal procurement practices.
4. Enhanced Role of Contracting Officers The rewrite clarifies the responsibilities and authority of contracting officers (COs), emphasizing their role in:
   • Ensuring compliance with laws and regulations.
   • Making sound business judgments.
   • Engaging with industry partners to achieve procurement objectives.
   This empowerment of COs is intended to facilitate more effective and timely decision-making in acquisitions.

Implications for Government Contractors

1. Opportunities for Commercial Vendors The emphasis on commercial solutions opens doors for businesses offering ready-made products and services. Contractors with commercial offerings can expect a more straightforward procurement process, with fewer customization requirements and faster acquisition timelines.
2. Need for Proactive Engagement With COs gaining more autonomy, building relationships with them becomes crucial. Understanding their needs and demonstrating how your offerings align with agency missions can position your business favorably. FedBiz Access offers direct-to-contracting-officer marketing through our Federal Connections Package and MatchMaker services. We also provide engagement coaching to help contractors effectively communicate with COs.
3. Staying Informed on Regulatory Changes The introduction of sunset clauses means that regulations will evolve more rapidly. Contractors must stay abreast of changes to ensure compliance and adapt their strategies accordingly.

Navigating Deviations and Class Deviations

The revised FAR Part 1 outlines procedures for individual and class deviations:

• Individual Deviations: Applicable to a single contract action, requiring approval from the agency head or designee.
• Class Deviations: Affecting multiple contract actions, these require coordination with the FAR Council and are subject to specific approval processes.

Understanding these mechanisms is vital for contractors seeking exceptions or alternative approaches in procurement.

Importance of Determinations and Findings (D&Fs)

D&Fs are formal documents that justify certain procurement decisions. The updated FAR Part 1 provides clearer guidance on:

• The content and structure of D&Fs.
• The authority required for approval.
• The circumstances under which D&Fs are necessary.

Contractors may encounter D&Fs in various contexts, such as sole-source justifications or deviations from standard procedures.

In Summary

The 2025 rewrite of FAR Part 1 represents a significant shift towards a more streamlined and flexible federal acquisition system. For government contractors, this presents an opportunity to align offerings with agency missions, engage proactively with COs, and adapt to a dynamic regulatory environment.

FedBiz Access has been a trusted partner in the government marketplace for over 24 years. From registration to award, we provide comprehensive support to help businesses succeed in federal contracting. Schedule a complimentary consultation with a FedBiz Specialist today to navigate the evolving landscape of government procurement.