Push for 'FAR 2.0' Acquisition Overhaul Intensifies
A major push to overhaul the Federal Acquisition Regulation, dubbed "FAR 2.0," is gaining momentum, with the Defense Acquisition University actively preparing the workforce for change. Multiple proposals aim to streamline procurement, digitize processes, and break down cultural barriers that stifle innovation, signaling a potential "FAR Revolution" for government contracting.
The current "FAR 2.0" or "Revolutionary FAR Overhaul" was initiated by President Trump's Executive Order 14275, "Restoring Common Sense to Federal Procurement," on April 15, 2025. The order aims to create a more agile and efficient procurement system by directing a comprehensive rewrite of the Federal Acquisition Regulation, the first in its 40-year history. The core directive is to strip the FAR down to only provisions required by statute or those deemed essential for sound procurement. This overhaul intends to eliminate what is described as an "excessive and overcomplicated regulatory framework" that has grown to over 2,000 pages, creating barriers for businesses, especially new entrants and small businesses. Non-statutory rules that remain may be subject to a four-year sunset clause, requiring reauthorization. This reform effort draws heavily on the findings of past studies, including the 2019 report from the Section 809 Panel. Established by Congress in 2016, the panel issued 98 recommendations to modernize defense acquisition, focusing on leveraging the dynamic commercial marketplace and enabling the workforce. Many of its proposals, like streamlining commercial buying and increasing certain acquisition thresholds, have already been partially enacted in prior National Defense Authorization Acts. A parallel initiative, the GSA's "OneGov" strategy, seeks to centralize federal purchasing to eliminate redundant contracts and leverage the government's buying power as a single entity. Launched in April 2025, OneGov's first phase targets IT and software procurement by negotiating directly with original equipment manufacturers (OEMs) like Google, Adobe, and Oracle for enterprise-wide agreements with standardized terms and significant discounts. To accelerate the overhaul, the Office of Management and Budget submitted 16 legislative proposals to Congress in July 2025. Key proposals include raising the Cost Accounting Standards (CAS) applicability threshold from $2 million to $35 million, which would exempt nearly half of currently covered contractors. Other proposals aim to significantly increase the Simplified Acquisition Threshold and the Micro-Purchase Threshold over five years. The overhaul process is being implemented in phases, with the FAR Council issuing class deviations as interim guidance until formal rules are published. The Office of Federal Procurement Policy (OFPP) is also using a crowdsourcing campaign, running until January 12, 2026, to gather feedback from industry and government stakeholders before formal rulemaking begins. This is not the first attempt at acquisition reform. The Competition in Contracting Act of 1984 and the Federal Acquisition Streamlining Act of 1994 were major efforts to increase competition and simplify processes. Critics of the current system argue that decades of regulatory buildup have created enormous administrative burdens, stifling innovation and making it difficult for non-traditional companies to do business with the government. Proponents believe this "FAR Revolution" will lower barriers for tech companies and small businesses by reducing compliance costs and streamlining processes. The focus is shifting from a complex, rule-based system to one that prioritizes commercial-style buying, speed, and flexibility, potentially changing how a vast range of goods and services, from software to major weapons systems, are acquired.
