Small businesses have an opportunity this month to voice their input on the new Federal Acquisition Regulation (FAR) overhaul. In late September, the Federal Acquisition Regulatory (FAR) Council released new model deviation text for Federal Acquisition Regulation (FAR) Part 19, which applies to small business contracting. This release is part of the broader Revolutionary FAR Overhaul (RFO) initiative, designed to simplify the FAR using plain language and to remove non-statutory and non-essential content.
The new model deviation isn’t final yet—it’s an interim draft that agencies can adopt through their own class deviations. Comments on the FAR Part 19 model deviation are open until November 3, 2025, so let’s review what’s changing, how it differs from the current FAR, and what these shifts could mean for small business contractors.
What is FAR Part 19?
FAR Part 19 governs small business programs, including:
- Size standards
- Determination of small business size for small business programs
- Set-asides for small and socioeconomic businesses
- 8(a) program participation
- Recertification requirements
- Protests and contracting officer discretion
The new FAR Part 19 will be renamed from “Small Business Programs” to Small Business.”
What’s Changing in FAR Part 19?
The new model deviation for Part 19 reorganizes the regulation and makes several significant changes. Here are the highlights:
Reorganized Structure
The new layout groups requirements by acquisition stage rather than by program type. The idea behind this change is to make the text easier to navigate and to consolidate definitions and clauses that were previously scattered. The new layout groups are:
- Presolicitation
- Evaluation and award
- Post-award
The “Rule of Two” Expanded
The “Rule of Two,” which requires a set-aside when two or more small businesses can perform at fair market prices, is still present. However, with the FAR Part 19 change, the rule will no longer be limited to socio-economic programs, but will apply to all small businesses. Contracting Officers must consider an overall small business-set aside before moving on to one of the socio-economic programs.
The updated language also makes it clear that Contracting Officers have greater discretion when applying set-asides at the order level under multiple-award contracts. According to the draft, the “Rule of Two” cannot be used as a basis for protest, meaning that on vehicles like GSA MAS or Governmentwide Acquisition Contracts (GWACs), small business contractors could face more full-and-open competition than before.
Order-Level Recertification Removed
The FAR Part 19 overhaul will eliminate the need for small businesses to re-represent their size status at the task order level. In other words, the size of a business during a task order competition will be based on the size standard assigned at the time the contract was awarded. Future size status will be evaluated during contract modifications or exercising option periods.
8(a) Program Adjustments
The revised Part 19 also introduces changes to how the 8(a) Business Development Program is managed, including:
- A requirement will be automatically released from the 8(a) Program if the follow-on contract is set aside under other socio-economic programs. COs do not need to formally notify or request this change.
- When an acquisition is below the Simplified Acquisition Threshold (SAT), COs must first conduct the acquisition as a competitive 8(a) order using SBA-approved government-wide contracts before turning to 8(a) sole source awards.
What Regulations Were Retained in FAR Part 19?
Content retained in the FAR Part 19 includes:
- Exclusion of Particular Source or Restriction of Solicitation to Small Business Concerns (10 U.S.C. § 3203 and 41 U.S.C. § 3303): This statute allows a government agency to exclude a particular source from a solicitation or restrict it to a small business concern under specific circumstances.
- Small Business Act (15 U.S.C. §§ 631 et seq): this act is for the government support and protection of small businesses
- Small Business Concerns (41 U.S.C. § 3104): this statute was created to ensure a fair portion of federal government procurement should be awarded to small business concerns.
The Impact of FAR Part 19 Changes on Small Businesses
Just like any new law or policy, there are pros and cons to the revision of FAR Part 19. Let’s review some of the impacts below:
Next Steps for FAR Part 19
Because this is a model deviation, each federal agency will decide whether (or how) to adopt it. GSA has already released Class Deviation RFO-2025-19, while other agencies are expected to follow. The comment period for FAR Part 19 closes November 3, 2025, giving small businesses an opportunity to shape the final rule.
Preparing for Future Changes in Federal Procurement
By now, you are probably understanding that change in federal procurement is happening in big waves, and it isn’t going to slow down anytime soon. Phase I of the Revolutionary FAR Overhaul ended on September 30, and the second Phase began on October 1st. The plan is to continue rewriting the rest of the FAR parts while the current updates are implemented. It’s important you are staying on top of these updates and adjust your contract accordingly.
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