FAR Update Launches New Era for Commercial Buying
Washington, D.C. – Today, the White House Office of Management and Budget’s Office of Federal Procurement Policy announced the launch of a historic update to the Federal Acquisition Regulation (FAR), marking the most significant reform to federal commercial buying procedures in over four decades. This action is part of the Revolutionary FAR Overhaul (RFO), which is returning the FAR to its statutory roots, rewritten in plain language, while removing non-statutory rules when they are not essential to sound procurement.
Under today’s action, agencies are authorized to immediately begin eliminating one-third of requirements from their future contracts that are not required by statute or executive orders and have little to do with contract outcomes. This deregulation, combined with more streamlined buying procedures, will make it easier for agencies to leverage commercially-available solutions, including the innovations of small businesses, to provide better, more cost-effective services to taxpayers.
“The old rules were built for paperwork; the new rules are built for performance. With each deviation, we’re clearing out red tape and making space for better value, timely delivery, and more robust competition. This will open the door for increased participation by innovative small business manufacturers, new entrants, and others who have not traditionally been willing or able to work with our agencies,” said Dr. Kevin Rhodes, senior advisor to OMB Director Russell Vought.
OFPP along with FAR Council is releasing the FAR Companion Guide, Practitioner’s Albums, and Category Guide.
Also, as part of today’s announcement, OFPP is directing agencies to use government-wide contracts for common commercial products and services including “best-in-class” and “preferred” contracts, rather than maintaining their own contracts. New criteria will be created by OFPP to qualify as a “Best in Class” contract for mandatory use in ways that align with the Administration’s priorities, including the best deal for taxpayers. Where a best-in-class contract does not meet needs, the agency will be expected to consider other “preferred” governmentwide contracts.
Other actions announced by OFPP include:
Upcoming releases of the RFO will focus on emerging technologies, pricing transparency, and agency accountability.
BACKGROUND
The FAR is the primary set of rules that governs how federal agencies purchase goods and services. It ensures consistency, fairness, and transparency across government contracts, helping agencies obtain the best value while complying with federal laws and policies.
The Revolutionary FAR Overhaul is the most significant reform to the FAR in its 41-year history. To date, the FAR Council has provided relief from more than 500 burdensome requirements for agencies and contractors, with over 1,000 total expected to be eliminated by the time the regulatory roll-back is complete. These reforms open the door for increased participation by innovative small businesses, manufacturers, new entrants, and others who have not traditionally worked with federal agencies.
The streamlined FAR and non-regulatory resources will collectively form the Strategic Acquisition Guidance (SAG) that provides a common-sense authoritative foundation for nimble response and delivery of mission capability.
https://www.whitehouse.gov/briefings-statements/2025/08/auto-draft-2708/