What your GovCon needs to know about the FAR Overhaul

Government contracting is undergoing one of the most significant regulatory shifts in recent memory. The Federal Acquisition Regulation (FAR) Overhaul initiative represents a philosophical change in how the federal government approaches procurement. The initiative aims to remove outdated, duplicative, or overly prescriptive requirements, and replace them with clear and concise guidance. The goal is to create space for agencies to tailor acquisitions to their missions.

For small government contractors (GovCons), the impact will be felt in every stage of the business development lifecycle, from bid strategy to contract execution. Understanding these changes to the FAR now will be essential to maintaining compliance and positioning competitively as the overhaul progresses. 

Where we are now 

So far, updates have been issued for 27 of 52 FAR parts. Each updated section comes with a “Practitioner Album” that provides side-by-side comparisons of old and new language, practical checklists, and decision-making tools for acquisition professionals.  

These changes reflect a move toward plain-language provisions, shifting away from verbose, prescriptive regulations to concise, easy-to-navigate rules that focus on statutory or executive mandates.  

Agencies are already beginning to adopt portions of the revised FAR, even before the full overhaul is complete, which is creating a mixed landscape where contractors must be aware of which version governs each procurement. 

Key trends 

One of the most notable changes is the increased flexibility agencies now have in designing procurement approaches. By stripping out rigid procedural details, the revised FAR empowers contracting officers to tailor acquisition methods to mission needs, potentially allowing for faster award timelines and more innovative solutions. This flexibility could be a double-edged sword for small businesses. Those who understand the new rules can use them to their advantage, while those who lag behind may find themselves outpaced. 

The modernization of IT procurement is another key theme. FAR Part 39 now explicitly incorporates emerging technologies, Internet of Things (IoT) devices, and modern cybersecurity requirements, while eliminating clauses that are now covered elsewhere in governmentwide security policies. This change opens the door for forward-leaning GovCons to bring more advanced, commercially available solutions into federal contracting. 

Finally, there’s a deliberate shift toward managing rather than avoiding risk. By emphasizing thoughtful risk assessment over rigid rule-following, the overhaul encourages contracting officers to pursue acquisitions that balance mission urgency with compliance—potentially streamlining awards for smaller, targeted procurements. Notably, Part 19 (Small Business Programs) has yet to be updated, but early changes to Part 6 hint at adjustments to how socioeconomic contracting requirements are applied, which could reshape set-aside opportunities in the near future. 

Strategies for small GovCons 

Small government contractors should view compliance not just as a requirement, but as a differentiator. Establishing formal internal policies, clear oversight mechanisms, and proactive self-certifications now will position your business to respond quickly to evolving rules. Investing in recognized compliance certifications—such as approved business systems—can further strengthen your standing with contracting officers. 

Training should also be a priority. Make sure your capture teams, project managers, and legal advisors are well-versed in the updated FAR language, Practitioner Albums, and related buying guides. This will not only improve your ability to remain compliant but will also enable your team to spot opportunities for creative acquisition strategies. 

GovCons should be prepared to leverage the newfound flexibility in the FAR to propose tailored procurement approaches, whether that’s through modular IT deployments, commercial item solutions, or risk-based acquisition plans. Participating in a mentor-protégé program can be particularly valuable during this period of change, helping small businesses expand their agency relationships, gain insights into evolving procurement processes, and strengthen proposal strategies. 

Moving forward 

The FAR overhaul is a recalibration of the contracting environment. Small GovCons that embrace these changes early, invest in readiness, and approach compliance as a competitive strength will be better equipped to thrive. 

With agencies moving at different speeds to adopt the revisions, adaptability will be as important as preparation. Those who can navigate this evolving terrain with clarity and confidence will not only keep pace but may find themselves leading the way. 

Interested in learning more about how to prepare your GovCon for what lies ahead? Connect with a Unanet expert today.