FAR Part 1 simplification: What government contractors need to know

The Federal Acquisition Regulation (FAR), a vital framework guiding procurement for the federal government, is undergoing a significant transformation under the guidance of Executive Order 14275: Restoring Common Sense to Federal Procurement. With this overhaul, the aim is to streamline processes, reduce unnecessary complexity, and ensure cost-efficient government procurement – an idea that we can all get behind.  

The first release of this work happened with details on all the proposed reductions for Part 1 of the FAR on May 5th.  Let’s look at the proposed changes, what they could mean for contractors, and how you can provide feedback on the proposed updates. 

The FAR rewrite goal and timelines 

The FAR has long served as the backbone for federal contracting procedures, offering a uniform guideline for agencies and entities conducting business with the government. However, it has been a while since anyone took a look at simplifying it, and instead many parts have been added – causing it to balloon to over 3,000 pages. The new FAR council was established last month, but rumors said the process had already begun before the executive order.  

The objective of the FAR rewrite is clear: 

• Simplify processes by removing regulatory redundancies 

• Minimize administrative burdens faced by contractors and agencies 

• Foster greater agility in procurement 

• Prioritize cost-efficiency without sacrificing transparency or public interest 

The timeline is pretty rapid. The goal is to complete the process by October 12th of this year with agency leads already assigned and groups formed. There will be an established 4 year overlap period for existing regulations to be phased out and a public comment period over the next few months.  

Why is Part 1 significant?  

• It establishes the guiding principles for the Federal Acquisition System.  

• It defines responsibilities for compliance and agency-specific regulations. 

• It sets performance standards for contracting officers.  

The revision of FAR Part 1 is particularly critical because it refines how procurement policies are implemented across agencies, directly shaping contractor interactions with the government.  

Proposed changes in FAR Part 1  

Quantitative analysis 

• Total lines in the document: 2,030 lines 

• Struck-through lines: 1,520 lines 

• Percentage of content proposed to be removed: Approximately 75% 

• Reduction in page count: The document will be reduced from 40 pages to approximately 10 pages, assuming an average of 50 lines per page. 

Here’s a closer look at the key changes being proposed and what they could signal:

1. Removal of the guiding principles statement (1.102) 

What changed: The vision emphasizing best-value delivery to customers, integrity, and public trust will no longer be explicitly outlined.  
What this means: This could de-emphasize principles like public accountability and customer satisfaction in favor of a leaner, task-oriented procurement process.

2. Elimination of performance standards (1.102-2) 

What changed: Specific standards for maximizing competition, minimizing costs, and conducting business with fairness and openness are removed.  
What this means: The removal may lead to a more flexible (but potentially less consistent) application of contracting practices across agencies. 

What changed: The oversight responsibilities of key federal bodies like the GSA, DoD, and NASA are no longer explicitly outlined.  
What this means: This change implies a potential decentralization of compliance oversight, which may result in inconsistent application of policies across agencies. 

4. Agency-specific regulations (1.301) 

What changed: Agencies’ ability to issue supplemental acquisition regulations will now be limited.  
What this means: Contractors may see streamlined, uniform regulations but reduced flexibility for adjustments in agency-specific scenarios. 

What Changed: The removal of provisions allowing deviations (both individual and class) from the FAR when necessary.  
What This Means: Contractors may face a more rigid system with fewer opportunities for innovative procurement approaches. 

What changed: Fewer mechanisms for public feedback on FAR changes.  
What this means: This could reduce transparency and stakeholder influence on pivotal policy decisions. 

What changed: Policies for officer training, selection, and responsibilities are altered.  
What this means: Contractors may encounter more variations in the quality and expertise of contracting officers. 

Key concerns for contractors  

While the intent behind these changes is clear—to streamline the procurement system and remove inefficiencies—there are concerns about the broader implications for government contractors.  

1. Reduced transparency: Removing public feedback mechanisms could lead to reduced accountability, affecting the fairness of the procurement process.  

2. Compliance challenges: Without centralized oversight and the ability to deviate, contractors may struggle to adapt to varied agency practices.  

3. Risk of oversight gaps: Declining roles for performance standards and officer accountability could increase risks related to non-compliance and inefficiency.  

What contractors should do now  

1. Stay updated  Keep an eye on updates posted on regulatory platforms like Acquisition.gov to remain informed about any further proposed changes.  

2. Provide feedback The General Services Administration (GSA), NASA, OFPP, and other bodies are welcoming input on the proposed changes. Contractors can submit feedback here. This is your chance to voice concerns, advocate for your interests, or seek clarity on the changes. 

3. Evaluate impacts Review your current contracts and processes to identify areas likely to be affected by the changes to FAR Part 1. Pay particular attention to compliance requirements, deviations, and amended oversight roles. 

4. Engage experts Policy changes in FAR may have legal and operational implications. Consider consulting procurement experts or legal advisors to better understand how these changes will affect your business. 

Ensuring you stay ahead 
Despite the challenges posed by these revisions, businesses that adapt early will likely gain a competitive edge. By staying informed, providing feedback, and leveraging resources, contractors can align themselves with the new requirements and position their businesses for long-term success. 

The proposed updates to FAR Part 1 will undoubtedly reshape the framework governing federal procurement. While the goal of greater efficiency and simplicity is commendable, contractors need to contemplate how this massive change will impact their business today and in the future.