FAR Part 44 Overhaul: What Government Contractors Need to Know About Subcontracting Policies and Procedures

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FAR Part 44 Overhaul: What Government Contractors Need to Know About Subcontracting Policies and Procedures

The Federal Acquisition Regulation (FAR) is being re-written to streamline outdated rules, eliminate inconsistencies, and make contracting guidance more accessible for both agencies and industry. This sweeping modernization—sometimes called the FAR 2.0 initiative—is designed to align procurement with today’s realities: commercial innovation, digital tools, and faster acquisition cycles.

One of the most important updates in this rewrite is FAR Part 44, which governs subcontracting policies and procedures. Subcontracting is at the heart of how federal contracts get done. Large prime contractors often rely on small businesses to deliver specialized services, meet socio-economic goals, or provide niche expertise. At the same time, subcontracting oversight ensures taxpayer dollars are spent wisely and in compliance with federal law.

The updated Part 44 strengthens purchasing system oversight for primes, clarifies consent and notification rules, and creates clearer pathways for small businesses to win subcontracting work.

Let’s break it all down.

What Is FAR Part 44?

FAR Part 44 outlines the framework for how prime contractors manage subcontracts and how contracting officers oversee that process. The rules ensure that subcontracting decisions are fair, competitive, and efficient.

Part 44 covers:

  • Consent requirements – When primes must obtain contracting officer approval before awarding subcontracts.
  • Advance notification requirements – When primes must notify the government about planned subcontract awards.
  • Contractor Purchasing System Reviews (CPSRs) – Oversight processes to evaluate how well primes manage subcontracting.
  • Commercial subcontract treatment – Flow-down requirements, inapplicable laws, and preferences for commercial products and services.

In short: FAR Part 44 makes sure primes manage subcontracting responsibly, while also giving small businesses opportunities to participate.

Key Differences at a Glance

Old FAR Part 44

  • Subcontract consent rules were spread across multiple subsections, often leading to inconsistent application.
  • Notification thresholds varied, and rules for civilian vs. defense agencies were less clear.
  • CPSRs lacked firm timelines, with inconsistent review cycles.
  • Commercial subcontracting requirements were less streamlined, often requiring unnecessary flow-down clauses.

New FAR Part 44 (2025 Overhaul)

  • Streamlined consent rules – If a prime has an approved purchasing system, only subcontracts flagged by the contracting officer require consent. Without approval, more subcontracts trigger the consent requirement.
  • Updated notification thresholds – Clear, agency-specific rules now exist for when primes must notify contracting officers before awarding certain subcontracts.
  • CPSRs on a three-year cycle – Contracting officers must evaluate the need for a CPSR at least once every three years, ensuring consistent oversight.
  • Commercial subcontract simplification – Emphasizes commercial products and services, excludes certain laws, and limits flow-down requirements only to essential clauses.
  • Reaffirmed consent limitations – Explicitly bars contracting officers from approving problematic subcontract structures, like cost-plus-percentage-of-cost.

Consent and notification requirements have always been a core part of Part 44, but the update makes them clearer and easier to apply.

  • Consent requirements now depend heavily on whether a contractor has an approved purchasing system. With approval, consent is only needed for specifically identified subcontracts. Without approval, consent applies more broadly.
  • Advance notification requirements are now clearly divided between defense agencies (DoD, Coast Guard, NASA) and civilian agencies. Each must notify contracting officers before awarding cost-plus-fixed-fee or certain fixed-price subcontracts that exceed either the simplified acquisition threshold (SAT) or 5% of the contract value.

For contractors, this means you’ll want to seek purchasing system approval whenever possible. Having approval reduces oversight burdens and gives you more autonomy in subcontracting.

Contractor Purchasing System Reviews (CPSRs)

The updated Part 44 strengthens CPSR requirements.

  • Regular cycle: Contracting officers must assess whether a CPSR is needed at least every three years.
  • Surveillance plans: CPSRs must be conducted under a documented plan that involves contracting, audit, pricing, and technical specialists.
  • Approval standards: Purchasing system approval is granted only when practices are efficient and adequately protect the government’s interests.

For primes, CPSRs create real pressure to demonstrate compliance. For small businesses, this creates opportunity. Primes under CPSR review need reliable subcontractors to show competitive, efficient, and compliant practices.

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Commercial Subcontracts and Flow-Down Rules

Part 44 now reinforces the preference for commercial products and services. This aligns with the broader FAR overhaul, which pushes federal agencies to buy commercial whenever possible.

Key updates:

  • Commercial preference – Primes and subcontractors must incorporate commercial products and services to the maximum extent practicable.
  • Flow-down requirements – Only clauses listed at FAR 52.244-6 apply to commercial subcontracts, reducing compliance burdens.
  • Inapplicable laws – A full list of laws that don’t apply to commercial subcontracts is published at acquisition.gov, providing clarity for primes and subs alike.

For small businesses that sell commercial products or services, this is a win. It means fewer barriers to entry and a faster path to getting picked up by primes.

Why These Changes Matter for Small Businesses

The FAR Part 44 overhaul directly impacts subcontracting opportunities. Here’s why:

  1. Primes need subs more than ever. With CPSRs on a three-year cycle, primes need competitive, capable small business partners to demonstrate efficiency.
  2. Commercial focus levels the playing field. Many small businesses sell commercial products and services. The updated rules make it easier for them to plug into federal subcontracting without getting buried in compliance.
  3. Consent and notification clarity helps. With clearer rules, small businesses can better understand when primes will need approval to bring them on board—and position themselves accordingly.

Finding Subcontracting Opportunities with FedBiz365

Here’s where FedBiz365 gives contractors a competitive edge:

  • Teaming Opportunity Tracking – See which primes are winning contracts and are likely to need subs.
  • CPSR Indicators – Track which primes may be undergoing purchasing system reviews, making them more open to partnering.
  • Visibility into Large Awards – Spot subcontracting opportunities tied to major awards before they’re widely advertised.
  • Beyond SAM.gov – Access opportunities and intelligence that don’t always show up in public postings.

FedBiz365 helps you get proactive. Instead of waiting for a subcontracting call, you can target the right primes at the right time.

How FedBiz Access Can Help

Our team has over 24 years of experience helping small businesses succeed in government contracting. With the FAR Part 44 changes, here’s how we can support you:

  1. FedBiz365 Market Intelligence – Identify teaming and subcontracting opportunities in real time.
  2. SAM & DSBS Optimization – Ensure primes find your business when searching for subcontractors.
  3. Capability Statements – Tailored documents that make it easy for primes to understand your value in a subcontracting role.
  4. Engagement Coaching – Practical guidance on how to approach primes and present yourself as a reliable partner during CPSR-driven reviews.

Final Takeaways

  • The FAR Part 44 overhaul strengthens oversight of subcontracting while making it easier for commercial small businesses to compete.
  • Key updates include streamlined consent rules, clearer notification thresholds, mandatory CPSR cycles, and simplified flow-down requirements.
  • For small businesses, this means more subcontracting opportunities—if you’re visible and prepared.
  • FedBiz365 helps you stay ahead by tracking primes, CPSRs, and teaming opportunities so you can position your business as the subcontractor of choice.

Don’t wait for opportunities to pass you by. Call us at: (844) 628-8914 or Schedule a complimentary consultation with a FedBiz Specialist today and learn how to turn the FAR Part 44 changes into a growth strategy for your business.

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FedBiz makes renewals so easy and simple which is great as when doing it directly with the gov't is so much more complicated! It was great working with Ashley Futral on on our latest renewal - she saved me so much time! She also helped sort out issues that came up with SAM that I don't think we could have solved on our own. Thank you!
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3 weeks ago
Ashley Futral was extremely helpful with renewing our sam.gov entity registration. She was always prompt with responding to emails and made the process go smoothly.
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4 weeks ago
Ashley is on another level!!! Very knowledgeable and helpful. Great to work with year over year!! Thumbs Up!!!!!!!
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4 weeks ago
Ashley Futral and the team at FedBiz Access provided outstanding support throughout my certification process. As the owner of a disabled veteran-owned logistics company, navigating the requirements can be complex—but Ashley made it seamless. Her professionalism, responsiveness, and deep knowledge of the process helped position my company for success in the government contracting space. Highly recommended for any business looking to grow strategically.
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1 month ago
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Ice King LLC
1 month ago
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1 month ago
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2 months ago
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2 months ago
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2 months ago
2025/2026 UPDATE: Cassie and her team at FedBizAccess continue to provide us with professional and reliable support for SAM registration and other government contracting needs.

2024 UPDATE: We continue to rely on FedBizAccess to help us stay on top of our SAM registration. Thanks again for making this an easy process for us, Cassie!

Original Review: We hired FedBizAccess several years ago to help us manage our federal contractor profile through the SAM database. Throughout the years they have been quick to respond to our requests. The past few years more of our focus has been outside the federal contracting arena and we hadn’t required their help. This year, though, we hit a snag renewing our SAM profile since we had a slight change in our company name. We reached out to FBA for help, and Cassie Elbanay responded immediately. She has been critical in helping us navigate the process. She is very knowledgeable, personable, and an overall professional. We are confident work will be done correctly and successfully when Cassie and her team are on the case. It has been a pleasure working with her, and I look forward to continuing our firm’s partnership with her and her team at FBA.
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2 months ago
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2 months ago
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Joyce Kamau
2 months ago
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2 months ago
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3 months ago
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Tamarah
3 months ago
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3 months ago
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4 months ago
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4 months ago
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4 months ago
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John Anderson
4 months ago
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Rifles Only
5 months ago
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arnoldo renteria
5 months ago
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5 months ago
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5 months ago
Mrs. Elbanay continues to be consistently efficient and proficient concerning all all SAM matters. We have worked with her for several years and always go back to her with any SAM or government agency matters. She is pleasant person who listens and resolves any situation and/or subject brought to her attention. Summarizing, she is second to none and we look great forward to working her again.

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Julia Perez
5 months ago
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cathy deLeon
5 months ago
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Meghan Ruth
5 months ago
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Jessica Sumner
5 months ago
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5 months ago
Cassie was patient and professional in updating my FedBiz account information.
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Warren Gatson
6 months ago
Fedbiz has been the needle in the Haystack!
Frank Krebs became Executive Service Contractor's mentor with the information and resources , his professional and friendly approach ESC were awarded a contract with the City of Chapel Hill! Its was a Darn Good Investment!!!
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Shedrick Amin
6 months ago
I recently had the pleasure of working with Fed Bizz Access to renew my SAM.gov registration, and I cannot speak highly enough of the exceptional service I received. From the outset, the process was streamlined, efficient, and handled with the utmost professionalism.

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Jay Reyes
6 months ago
⭐️⭐️⭐️⭐️⭐️ Outstanding Service & World-Class Expertise

Working with Mya Plant at FedBiz has been nothing short of exceptional. From start to finish, Mya demonstrated professionalism, attention to detail, and a true passion for helping small businesses shine.

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Terrell Scott
6 months ago
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Leon Carr
6 months ago
Cassie Elbanay is a consistent and diligent professional when it comes to my business renewal for SAMS!
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Apar Fones
6 months ago
Ashley Futural was a lot of help finishing the process to get registered. She was very knowledgeable and answered any questions I had.
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John Diaz
6 months ago
Ashley is very knowledgeable and works very efficiently in the renewal of our SAM registration. Highly recommend her and her organization, FEDBIZACCESS.
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LaToya Greene
6 months ago
Ashley Futral is very helpful and knowledgeable. She replies to my emails promptly when I have any questions throughout the year. I appreciate her professionalism and customer service.
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Donovan Wright
6 months ago
Very professional and effective service oriented organization and Team guaranteeing the best outcome.
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Debbie Goodin
6 months ago
Ashley Futral is our go-to person for all our Fed Biz needs and questions. We trust her knowledge 100%!
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6 months ago
Ashley is amazing. She is always willing to help me walk through the whole process and answer any questions I have along the way!
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Anthony Padro
6 months ago
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Clinton Nguyen
6 months ago
I just wanted to take a moment to express how grateful I am for Cecelia's incredible support throughout the WOSB certification process. Cecelia, at FedBiz, has been absolutely wonderful to work with. Her professionalism, efficiency, and kindness have made a significant difference. She's been instrumental in guiding us through each step, ensuring that we understand and meet all requirements. Cecelia's dedication and hard work have truly made the process smoother and more manageable for us. I can't thank her enough for all the help she has provided.
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Bruce W. Reyle Real Estate Appraisal Company
6 months ago
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