A NEW ERA IN FEDERAL CONTRACTING: WHAT THE FAR OVERHAUL MEANS

An executive order document with a gavel resting on it.

Written By: Ashlianne Shigley, Vertosoft Government Contracts Program Manager

The landscape of federal acquisition is embarking on one of its most comprehensive and far-reaching reforms in recent history. As announced in Executive Order 14275 – Restoring Common Sense to Federal Procurement, issued by the Trump administration in April 2025, the Federal Acquisition Regulation (FAR) is undergoing a top-to-bottom rewrite intended to simplify and modernize the government’s contracting framework. Preliminary details of the initiative have been published on WhiteHouse.gov and Acquisition.gov. A copy of the Executive Order can be seen here.

The goal is to simplify, clarify, and modernize the FAR to better serve both government buyers and commercial contractors. The initiative is being led by the Office of Federal Procurement Policy (OFPP) in coordination with the FAR Council, which includes representatives from the General Services Administration (GSA), the Department of Defense (DoD), and the National Aeronautics and Space Administration (NASA).

Focus Areas of the FAR Rewrite

The FAR rewrite is centered on three primary objectives:

  1. Clarity: Rewrite provisions using plain language to improve comprehension and reduce legal and technical ambiguity.
  2. Structure: Reorganize content for easier navigation and improved alignment with how users navigate and apply the FAR.
  3. Accessibility: Enhance formatting and referencing to make the FAR more usable amongst a broader range of stakeholders.

In addition to changes in regulatory text, OFPP-approved “buying guides” will be released to replace most non-statutory regulations. Together, these materials will be known as the Strategic Acquisition Guidance (SAG).

The revised FAR will preserve provisions that are either required by law or are critical to ensuring streamlined, secure, and cost-effective procurement. Agencies will also be expected to bring their supplemental regulations into alignment with the revised FAR.

Status of Released Guidance

On May 2nd, 2025, agency-specific guidance was issued for:

  • FAR Part 1: Federal Acquisition Regulation System
  • FAR Part 34: Major System Acquisition

These documents provide federal agencies with directions on how to begin implementing the changes outlined in the Executive Order.

Guidance for FAR Part 52, which covers Solicitation Provisions and Contract Clauses, has not yet been released and is currently listed as to be determined. Since Part 52 governs the inclusion of contract clauses in federal solicitations and awards, future updates are expected to carry substantial implications for both agencies and vendors.

Looking Ahead

This overhaul will not happen overnight. As the Office of Federal Procurement Policy (OFPP) and the FAR Council roll out changes section by section, we at Vertosoft will stay agile and proactive.

We will continue to share updates, guidance, and insights as the FAR overhaul unfolds, particularly regarding how FAR Part 52’s evolution affects direct government contracting and the broader federal IT landscape. If you have questions in the meantime, please reach out to our Contracts Department, [email protected].