The White House announced on Friday the most sweeping overhaul of federal procurement rules in four decades, immediately eliminating one-third of contract requirements that aren’t mandated by law.
The reforms aim to slash red tape that has long deterred small businesses and innovative companies from competing for government contracts worth hundreds of billions annually.
The Office of Federal Procurement Policy’s update to the Federal Acquisition Regulation (FAR) represents the first phase of the Revolutionary FAR Overhaul. The initiative strips away non-statutory rules deemed unnecessary for sound procurement.
“The old rules were built for paperwork; the new rules are built for performance,” said Dr. Kevin Rhodes, senior advisor to Office of Management and Budget Director Russell Vought. “With each deviation, we’re clearing out red tape and making space for better value, timely delivery, and more robust competition.”
Rhodes added that the changes 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.”
The overhaul consolidates key procedures under a modernized FAR Part 8. It retires Parts 38 and 51 entirely.
Agencies must now use government-wide contracts for common commercial products and services rather than maintaining their own. The Office of Federal Procurement Policy will establish new criteria for “best-in-class” contracts aligned with administration priorities.
Gone are outdated requirements like paper-based pricing lists and duplicative contract approvals. The changes also streamline contractor registration in the System for Award Management.
To support the transition, OFPP released three new resources. The FAR Companion Guide offers strategic implementation tips from experienced government practitioners.
Practitioner’s Albums provide tested learning tools for better contract outcomes. The Category Guide includes practical advice for leveraging best-in-class and preferred government-wide contracts.
The FAR Council has already provided relief from more than 500 burdensome requirements. Officials expect to eliminate over 1,000 total by completion.
Future phases will address emerging technologies, pricing transparency, and agency accountability. The streamlined FAR and new resources will form the Strategic Acquisition Guidance foundation for nimble mission delivery.