Massive changes are coming to the way the federal government does business and if you’re a contractor, you can’t afford to ignore them. For the first time in over 40 years, the Federal Acquisition Regulation (FAR), which is the rulebook for how the government buys everything from pencils to satellites, is getting a top-to-bottom rewrite. This isn’t just an update; it’s a transformation. Whether you’re a seasoned federal contractor or a small business preparing to enter the market, these changes could directly impact how you win contracts, manage compliance, and grow your revenue.

Whether you're a long-time federal contractor or a small business eyeing your first government contract, the Federal Acquisition Regulation News coming and changes in FAR rules and regulations will shape how you bid, win, and perform on contracts. Here’s what you need to know to stay ahead of the curve.

What’s Driving the FAR Rewrite?

First issued in 1984, the Federal Acquisition Regulation has grown into a sprawling, complex regulatory structure spanning dozens of parts, clauses, and supplementary regulations. Over the years, it’s been amended hundreds of times, often in response to new legislation, policies, and priorities. The result? A bloated system that’s often hard to navigate, especially for small and mid-sized businesses.

This rewrite is a long-overdue effort to consolidate, simplify, and modernize the FAR. Lawmakers and acquisition professionals have made it clear: the status quo is no longer acceptable. They’re calling for a system that’s faster, fairer, and more efficient—and that better reflects the realities of modern government contracting.

What Is FAR Consolidation?

At the heart of the rewrite is FAR consolidation. This is a streamlining of overlapping rules, outdated clauses, and duplicate guidance. The idea is to eliminate inconsistencies and combine similar provisions, creating a more cohesive, user-friendly structure.

For contractors, this could mean:

• Fewer redundant certifications and disclosures
• Simpler proposal requirements
• Clearer contract clauses
• More consistent interpretation across agencies

This is welcome news for many firms, especially those bogged down by the administrative burden of staying compliant. By consolidating and clarifying rules, the government hopes to reduce compliance costs and accelerate procurement timelines.

Modernization of Language and Structure

Beyond consolidation, the FAR rewrite will focus on updating the language and format of the FAR to align with today’s digital and business environments. This includes:

• Plain-language revisions to make the FAR more understandable.
• A reorganized table of contents and navigation structure for digital usability.
• More consistent definitions and cross-references across clauses.
• Integration with eProcurement tools and contract management software.

These updates are meant to help both seasoned professionals and new entrants understand the rules quickly, reducing errors and boosting efficiency across the acquisition process.

Key Policy Changes Expected

While the full details of the rewrite are still in progress, here are some of the policy changes likely to emerge:

1. More Flexibility in Contract Types

The government is expected to allow greater use of commercial item contracts, Other Transaction Authorities (OTAs), and Agile procurement models. This would help agencies tap into fast-moving industries like cybersecurity, AI, and cloud computing.  However, OTAs also bring with them their own unique brand of risk as they are often “white space” for negotiable language and/or incorporation of non-standard terms and conditions.

2. Focus on Performance-Based Outcomes

Contracts may shift further away from rigid deliverables toward performance-based requirements, where payment and evaluation are based on outcomes, not just activity. This approach could favor contractors who focus on value, efficiency, and innovation.

3. Stronger Cybersecurity Standards

The rewrite is also expected to incorporate enhanced cybersecurity requirements aligned with frameworks like NIST 800-171 and CMMC 2.0. Federal contractors, especially those working with controlled unclassified information (CUI), should prepare for heightened scrutiny.

4. Equity and Accessibility

While the primary focus of the FAR rewrite is simplification and modernization, broader procurement trends continue to emphasize increasing access for small, disadvantaged, and minority-owned businesses. Though not the central thrust of the current rewrite, agencies may continue pursuing policies that promote supplier diversity, streamline registration processes, and improve access to set-aside opportunities through parallel initiatives or future rulemaking.

How Might the FAR Rewrite Impact Contractors

Faster Proposal Development

With simplified requirements and fewer redundant documents, contractors may be able to build compliant proposals more quickly. This can give small and mid-sized businesses a competitive edge in the fast-moving procurement environment.

Shifting Compliance Risk

By clarifying rules and reducing ambiguity, the rewrite very likely will shift some compliance risks.  For example, less emphasis on things like small business subcontracting could result in lower subcontract small business program risks.  However, increased emphasis on cybersecurity may heighten these risks.  The intent of the FAR rewrite, from where we stand, is to focus the compliance risk where the administration feels it most matters – not eliminate all compliance risk.  Contractors will need to understand where the compliance focus is shifting.

Early industry insights indicate that, at minimum, statutory requirements will remain.  That likely includes Cost Accounting Standards (CAS) and other requirements incorporated through law.  Contractors can track the shift in compliance risk through changes to FAR, but also changes in audit programs, Memorandums to Regional Directors (MRDs), and similar publicly available documents that inform U.S. Government personnel and contractors on how to navigate the massive change.

Shifting Evaluation Criteria

Agencies may adopt new evaluation frameworks focused more heavily on past performance, innovation, and cost-effectiveness. Contractors should consider updating internal metrics and client success stories to align with these trends.

What Should Government Contractors Do Now?

1. Stay Informed

Monitor Federal Acquisition Regulation news regularly from trusted sources like the Federal Register, GSA, and industry sites like Federal News Network. Changes may roll out in phases, with opportunities for public comment. It’s also important to note that FAR parts 2, 34, and 52 are already out as of May 2^nd, 2025.

2. Reassess Your Compliance Posture

Take stock of your current policies, internal controls, and recordkeeping processes. Are your processes compliant with those areas of shifting compliance risk.  RKI can assist you with evaluating your readiness for increased audit scrutiny in those areas that appear to be gaining focus.

3. Plan for Technology Integration

As procurement moves further into the digital realm, contractors will need to modernize their proposal and contract management tools. Cloud-based platforms, compliance dashboards, and data analytics will play a larger role under the new rules.

4. Train Your Team

New policies mean new responsibilities for proposal teams, project managers, and accounting staff. Invest in FAR training to help your team interpret and implement the revised FAR rules and regulations effectively.

How RKI Can Help

At RKI, we specialize in helping government contractors prepare for change. Whether it's optimizing your accounting system, ensuring compliance with CAS preparing for DCAA audits, or navigating the shifting procurement landscape, our team has you covered.

We are actively monitoring the FAR rewrite process and will continue to publish updates, insights, and best practices to help clients make strategic decisions. Our goal is to turn regulatory updates into growth opportunities for your business.  As has always been the case for U.S. Government contractors, the rules are a barrier to entry.  As such, those who can comply can compete.  Let us help you be first in line for doing so.

Partner With Experts to Stay Ahead of the Curve

The FAR rewrite represents both a challenge and an opportunity for government contractors. It’s a chance to shed outdated processes, simplify compliance, and compete more effectively in the federal space.

By staying proactive, investing in preparation, and partnering with experts like RKI, your business can turn this evolving regulatory environment into a strategic advantage.

Ready to prepare for the new FAR? Contact RKI today to schedule a free consultation and stay ahead of the change.