Public comment closes Monday, Oct. 19, on three of the twelve proposed rules the Federal Acquisition Regulatory Council is issuing to rewrite the Federal Acquisition Regulation. All three were published Sept. 18. They cover commercial and simplified buying and negotiated contracts (FAR Case 2026-003, 91 FR 59406), contract types and special methods (FAR Case 2026-006, 91 FR 59476), and sealed bidding, bonds and construction (FAR Case 2026-010, 91 FR 59534).
The project, branded the Revolutionary FAR Overhaul, implements Executive Order 14275 of April 15, 2025, which told the council to keep only provisions “required by statute or essential to sound procurement.” For contractors that means fewer clauses and more discretion for contracting officers. For anyone tracking how federal money is spent, it means less detail flowing back to auditors in some places and new sign-off requirements in others.
1. The method: statute stays, guidance moves
Each notice applies the same test. The council reviewed every non-statutory requirement against Section 4 of the order. Requirements that passed stayed in the regulation. Ones judged “beneficial but not essential” moved to non-regulatory guidance such as the new FAR Companion. The rest were deleted.
The proposed rule retains non-statutory requirements that further one or more of the elements of sound procurements, including those requirements that serve as guardrails to protecting taxpayer interests and promote taxpayer confidence in the procurement system.
EXCERPT · FAR Case 2026-003, Section II.A.4
The council also swaps “shall” for “must” or “will” throughout and says none of the plain-language edits are meant to change existing requirements. It is weighing moving every provision and clause into a new Part 52 subpart, so numbers would begin with, for example, 52.4 instead of 52.2. The aim is to keep pre- and post-overhaul versions from being confused, and the council asks for comment on the idea.
2. Commercial buys: one stop, fewer clauses
The biggest structural change is in Part 12. Simplified acquisition and micro-purchase procedures move from Part 13 into Part 12, along with the publicizing rules for commercial buys from Part 5. The statutory authority to use simplified procedures for commercial products and services up to $9 million, or $15 million in certain emergencies or major disasters, would be embedded throughout the part. Part 13 would shrink to noncommercial buys at or below the simplified acquisition threshold.
The omnibus provision 52.212-3 and clause 52.212-5 would go. The council says they provide “incomplete lists” and that removing them shifts the job of deciding which clauses apply from the offeror to the government. “These proposed changes are expected to substantially reduce the number of provisions and clauses included in commercial acquisitions,” the notice says. One oversight term survives: the Comptroller General’s right to examine records moves from 52.212-5(d) into 52.212-4(t).
There is a tightening, too. Today FAR 12.301(d) gives a contracting officer broad discretion to add clauses not listed. Under the proposal, adding a clause not prescribed for commercial buys would require an individual or class deviation under Part 1. Construction could also qualify as a commercial service under a companion case, FAR Case 2026-001, while still following Part 36.
Part 8 would require agencies to use OFPP-designated “required use” governmentwide contracts and to consider “best in class” vehicles before awarding new ones. Part 51 would be folded into Part 8 and eliminated. Agencies could then authorize contractors to use government supply sources under any contract not awarded by sealed bidding. In Part 15, the council would favor negotiation over discussions, revise the definition of “deficiency” and drop exchanges with offerors before a competitive range is set.
3. Contract types and the audit trail
Part 16 adopts E.O. 14402 of April 30, 2026: fixed-price contracts with performance-based considerations become the default, and other types need a written justification signed by the agency head. Contract-type selection shifts from a restrictive to a permissive framework. Types not named in the FAR are allowed if they promote the government’s best interest and are not expressly prohibited by statute.
The audit change sits in clause 52.216-7, Allowable Cost and Payment. Paragraph (l), the reconciliation of total payroll per IRS Form 941 to labor cost distribution, would be removed entirely. Detailed labor rates and hours for time-and-materials contracts would go, subcontract information would be limited to subcontracts above the certified cost or pricing data threshold, and fee computations would no longer be required. The council says this shortens closeout.
Less paperwork for contractors is, by definition, less paper for auditors.
Also under Part 16, contractors that compete for a task or delivery order above the simplified threshold and up to $7.5 million, and lose, could request a brief explanation. The statute sets $5.5 million, but the council uses the inflation-adjusted figure. Part 17 drops the non-statutory five-year cap on contract duration. It also adds language to two option clauses letting both sides agree to toll option deadlines that expire during a lapse in appropriations, relevant with the government on a stopgap that expires Dec. 11.
4. Construction clauses on the cutting list
| FAR item | Title | Stated reason |
|---|---|---|
| 52.236-1 | Performance of Work by the Contractor | Believed to restrict competition on fixed-price contracts |
| 52.236-4 | Physical Data | Covered by 52.236-3 |
| 36.519, 52.236-19 | Organization and Direction of the Work | Non-statutory; conflicts with 52.236-6 |
| 36.212, 52.236-26 | Preconstruction Conference | Permissive text; can be set in solicitation |
| 36.210, 52.236-27 | Site Visit | Invitation for bid can say the same |
| 36.520, 52.236-28 | Preparation of Offers, Construction | Redundant |
| 14.207 | Pre-bid conference text | Unnecessary permission |
The council says the Part 14 and Part 28 changes are mostly internal and not expected to significantly affect contractors.
5. The case, and what happens next
The council’s argument leans on one statistic. Per System for Award Management data, roughly 45 percent of contract dollars in FY 2025 were awarded without competition or with only one offer. The council pairs that with a 20-year decline in participating businesses. The more likely tension in comments is the one the design invites: guidance in the FAR Companion is not binding, and fewer cost submissions mean less for auditors to test.
- Oct. 19: comments close on all three cases at regulations.gov, under Docket Nos. FAR-2026-0003, FAR-2026-0006 and FAR-2026-0010.
- After that: the council must consider comments “in the formation of the final rule.” No notice sets an effective date. The phase-one model class deviations issued in FY 2025 remain the bridge until final rules are published.
- Open item: the possible renumbering of all provisions and clauses into a new Part 52 subpart (52.4 is the example given), on which the council has asked for input.
- Federal Acquisition Regulation: Revolutionary FAR Overhaul Parts 8, 12, 13, 15, 38, 44, and 51 (FR Doc. 2026-19162) — Federal Register · federalregister.gov
- Federal Acquisition Regulation: Revolutionary FAR Overhaul Parts 16, 17, and 35 (FR Doc. 2026-19160) — Federal Register · federalregister.gov
- Federal Acquisition Regulation: Revolutionary FAR Overhaul Parts 14, 28, 36, and 52 (FR Doc. 2026-19158) — Federal Register · federalregister.gov
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