Major Overhaul of Federal Buying Rules Looms
A significant overhaul of federal procurement rules, dubbed "FAR 2.0," is reportedly on the way for 2026. The changes, promoted by the Defense Acquisition University, aim to streamline solicitations and emphasize digital, outcome-focused contracting. This push for speed, combined with initiatives like "OneGov" to unify portals, signals a major shift in how the government, particularly the Pentagon, buys technology and innovation.
The "Revolutionary FAR Overhaul" was initiated by Executive Order 14275, "Restoring Common Sense to Federal Procurement," in April 2025. The stated goal is to create a more agile and efficient procurement system by rewriting the Federal Acquisition Regulation (FAR) in plain language and removing provisions not explicitly required by statute. This effort, led by the Office of Federal Procurement Policy (OFPP), aims to reduce compliance burdens, especially for small businesses and new entrants into the federal marketplace. This regulatory overhaul coincides with the Pentagon's push to accelerate technology adoption, shifting to what it calls a "wartime footing" for acquisition. This involves replacing slow, bureaucratic processes like the Joint Capabilities Integration Development System (JCIDS) with forums that tie funding directly to warfighting priorities and encourage rapid prototyping. The goal is to deliver "85 percent solutions" quickly rather than waiting for a perfect solution that arrives too late. The GSA's "OneGov" strategy complements this push for speed by centralizing federal purchasing to leverage the government's collective buying power. Initially focused on IT software and cloud solutions, OneGov negotiates enterprise-wide deals directly with original equipment manufacturers like Google, Adobe, and Microsoft, aiming for significant cost savings and standardized security. This shift centralizes buying, creating fewer but higher-value opportunities for contractors. For tech startups, this evolving landscape presents both challenges and opportunities, particularly concerning the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These key funding sources for small business R&D lapsed on October 1, 2025, creating uncertainty as Congress debates reauthorization. A proposed 2025 reauthorization act seeks to make the programs permanent and significantly increase their funding allocations over seven years. Underpinning the drive for faster tech acquisition is the DoD's formal adoption of ethical principles for Artificial Intelligence. In 2020, the Pentagon established five core principles for AI development: responsible, equitable, traceable, reliable, and governable. These principles guide all DoD AI initiatives and require contractors to align their solutions with these standards, ensuring human accountability remains central to military decision-making.
