The Federal Acquisition Regulation (FAR)—the federal government’s ultimate guide for acquisition—is a 2,000+ page rulebook (some may use as a doorstop it’s so large) that has become a hot topic of conversation in the Trump Administration. A recent Executive Order (EO) directs relevant procurement officials to review the FAR and come up with FAR 2.0 within 180 days. The order also requests a thorough review of the federal procurement system to see where it can be made more streamlined and efficient.
While this is not the first time an EO has called for big changes to the federal government procurement system, this order proposes the most significant changes in decades. Let’s dive into what we know so far and what it could mean for federal contractors.
What is the Federal Acquisition Regulation (FAR)?
The Federal Acquisition Regulation, or better known as the FAR, was created over 40 years ago to establish uniform procedures for federal procurement. The FAR is governed by the Department of Defense (DoD), the General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA).
The FAR consists of 53 parts and is supplemented by several agency-specific regulations such as the Defense Federal Acquisition Regulation (DFARS). It’s safe to say that the FAR is a cumbersome document, which is to be expected when it involves the federal government. But the question today is—is it too much?
This is what the Trump Administration’s thinks. The recent Executive Order, “Restoring Common Sense to Federal Procurement” states that doing business with the federal government has become costly and inefficient, and the FAR has become more of a barrier than a guide to procurement. We’ll cover the proposed changes in the next section.
FAR 2.0 Executive Order
The new administration’s goal is to remove barriers while allowing for expansion of national and defense industrial bases. The idea is the FAR should only contain provisions required by statute or essential for procurement.
The EO directs the Administrator, in coordination with the other members of the Federal Acquisition Regulatory Council (FAR Council), the heads of relevant agencies, and appropriate senior acquisition and procurement officials to take appropriate actions to amend the FAR within 180 days. This would put us at the start of Q1 for the federal 2026 Fiscal Year.
Here’s a breakdown of the specific actions mentioned in the EO:
- Each federal agency should designate a senior acquisition or procurement official within 15 days of EO publication to work with the Office of Federal Procurement Policy (OFFP) and FAR Council.
- The OFFP, FAR Council, heads of agencies and their chosen officials must amend the FAR to only include required or necessary provisions.
- The Director of the Office of Management and Budget (OMB) must consult with the OFFP to issue a memo providing guidance related to this order.
- The OFFP must direct all agencies to adhere to the ten-for-one requirement outlined in a previous EO for all proposals. This requirement mandates that any agency publicly proposing a new regulation must identify at least 10 regulations to repeal.
What Do the Changes to the FAR Mean for Federal Contractors?
If you have been around for a while, or even a year or two, you’ve seen how any changes to the FAR aren’t taken lightly. Adding a new FAR clause involves a multi-step process that starts with a proposed rule, then stages of review and comment, modification, and then formal publication. This whole process takes several months if not a year (or more).
However, this EO is directing parts of the FAR to be reduced, which isn’t a common occurrence, so it may be a faster process.
Right now, we don’t know exactly what clauses or sections of the FAR will be impacted and just how much. But the Trump Administration made clear they plan to make significant changes, which means the procurement process will inevitably be different.
The EO mentions removing non-statutory language which could streamline compliance requirements, potentially making it easier to maintain compliance. Less regulations may also reduce barriers to entry for small businesses. We could on the other hand see less clauses surrounding socio-economic set-asides. Additionally, the fast-paced timeline without the review and comment period may leave less room for industry and contractors like you to put their two cents in, but right now we don’t know what the process will look like yet.
It’s important to keep a close eye on this the next few months to see what areas of the FAR are identified.
Looking Ahead to the Future of GovCon
FAR 2.0 is just one part of the many changes happening under the Trump Administration. Are you tracking the Executive Orders and how they impact you? Or pivoting your marketing strategy to secure more business in this changing market? Check out our blogs below to learn more:
- GSA to Significantly Expand Federal Procurement Under New EO
- Top 10 Things Federal Contractors Should Do During a New Presidential Administration
- What the New Administration Could Mean for SLED Markets
Check out our blog for more articles related to this topic. If you have more questions about the changes, or would like help positioning your GSA Schedule contract for success, we would be happy to help you.
