On May 6, 2025, the Federal Acquisition Regulatory Council (FAR Council) published draft revisions to the Federal Acquisition Regulation (FAR) as part of a sweeping, phased update known as the Revolutionary FAR Overhaul (RFO). The initial draft revisions—covering FAR Parts 1, 34, and 52—are now open for public comment through September 30, 2025, at 12:00 PM EST. However, in a major break from traditional practice, federal agencies are being directed to begin immediate adoption of the draft text through FAR deviations. This allows new procurement standards to take hold before the conclusion of formal rulemaking—raising serious questions about government contractor input, regulatory stability, and transparency.
Background: A Presidential Directive for Modernization
In an effort to reduce government inefficiency, increase competition, and protect taxpayer dollars, President Trump issued Executive Order 14275 directing a transformational update to the FAR. The Office of Federal Procurement Policy (OFPP)—in collaboration with the Department of Defense (DOD), National Aeronautics and Space Administration (NASA), and General Services Administration (GSA), all members of the FAR Council—is leading the initiative.
According to OMB Senior Advisor Dr. Kevin Rhodes, the RFO aligns with the Administration’s commitment to transparency in deregulation, “reducing bureaucracy to accelerate procurement, reduce costs, and increase competition.”
What’s Changing (So Far): Parts 1, 34, and 52
- Part 1
-
- Introduces a mandatory four-year sunset clause for all non-statutory FAR provisions.
- Removes much of the background and context language that guides users of the FAR.
- Part 34 (Major System Acquisition)
-
- Curtails Earned Value Management System (EVMS) requirements and Integrated Baseline Review (IBR) language into concise directives, eliminating detailed policy and procedural guidance.
- Part 52 (Solicitation Provisions and Contract Clauses)
-
- Updates cross-references and clause triggers to align with the revised Parts 1 and 34, again paring back explanatory context.
The Four-Year Sunset Clause
One of the most consequential changes is in FAR Part 1:
“All FAR sections that are not required by statute must expire 4 years after the effective date of the sections,
unless renewed by the Federal Acquisition Regulatory Council.”
This clause means that any provision not explicitly mandated by law will automatically lapse after four years unless the FAR Council extends it. While presumably intended to periodically cull and streamline the FAR, this sunset provision creates the potential for rule instability, as program offices and contractors may find themselves operating under constantly shifting requirements.
Strategic Acquisition Guidance (SAG): Replacing Regulation with Playbooks
In tandem with reducing FAR text, OFPP is introducing a new framework called Strategic Acquisition Guidance (SAG). These plain-language, scenario-specific guides are intended to eventually replace many non-statutory FAR provisions, giving contracting officers more discretion while simplifying compliance for contractors. The first SAG will focus on Software as a Service (SaaS) acquisitions, a priority area for agencies adopting agile development and fast-track ATO processes.
Rolling Implementation: A “Runaway Train”?
The RFO website confirms that agencies are expected to adopt the draft revisions immediately via FAR deviations—even before formal notice-and-comment rulemaking concludes. GSA already issued such deviations for FAR Parts 1 and 34. You can view those deviations here and here.
This “adopt first, finalize later” strategy risks undermining public participation, potentially turning the rulemaking process into a rubber stamp. Contractors and trade groups may find it difficult to influence finalized text once operational norms have already shifted.
What the RFO Promises
The RFO initiative touts several benefits:
- Elimination of non-statutory and duplicative regulations, including Diversity, Equity, and Inclusion (DEI) clauses—many of which have already been rescinded via class deviations (e.g., FAR 52.222-21 through -29).
- Replacement of burdensome procedural content with SAG, initially focused on fast-moving sectors like cloud software.
- Faster, more competitive procurement.
How to Participate
- Follow Updates: Available on the RFO website.
- Review the drafts: Available here.
- Submit comments: comments on current proposed changes are due by September 30, 2025 at 12:00 pm EST. Industry input may be best chance to ensure that the final FAR overhaul strikes the right balance between efficiency, transparency, and oversight.
If you have questions about the RFO or have been impacted by the administration’s recent executive orders, please contact Sam Finnerty or another member of PilieroMazza’s Government Contracts Group. Also visit our Government Contract Executive Orders resource center for additional coverage.
________________
If you’re seeking practical insights to gain a competitive edge by understanding the government’s compliance requirements, tune into PilieroMazza’s podcasts: GovCon Live!, Clocking in with PilieroMazza, and Ex Rel. Radio.
