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The FAR overhaul's second round covers 16 more parts, including commercial items, competition and contract types

Proposed rules published Sept. 18 rewrite FAR parts that govern how agencies buy commercial products, run competitions and choose contract types. With 36 parts now proposed, contractors and federal buyers should review drafts during the 30-day comment window.

A laptop computer on a glass-top table
A laptop computer on a glass-top table. Photo: Carlos Muza / Unsplash

Article summary

  • Why it matters: The Federal Acquisition Regulation decides how the U.S. government buys almost everything. The rewrite now underway changes the rules companies must follow to sell to federal agencies and the processes agency procurement teams use. The second set of proposed rules covers some of the most heavily used parts, including commercial products and services, simplified acquisitions, negotiated competition and contract types.
  • What to do first: Read the proposals that touch your contracts and comment during the 30-day window if a change would affect you.
  • Map current contracts to new rules. Note which clauses are likely to change at the next modification or option.
Sept. 18, 2026
second set of proposed rules published
16
FAR parts in the second set
36
FAR parts proposed so far, plus Part 52 clauses
30 days
comment period for each set
On this page
  1. The details
  2. Timeline so far
  3. Why the second set matters more to most suppliers
  4. How to comment
  5. Who should pay attention
  6. What procurement teams should do
  7. What to watch next
  8. The bigger picture

The details

The Revolutionary FAR Overhaul entered formal notice-and-comment rulemaking on June 23, 2026, with a first set of proposed rules covering 20 FAR parts and associated clauses, according to law firm Wiley. A second set followed on Sept. 18, covering 16 more parts. Each set has a 30-day public comment period.

FAR parts in the second set:

Part Subject
8 Required sources of supplies and services
9 Contractor qualifications
12 Acquisition of commercial products and services
13 Simplified acquisition procedures
14 Sealed bidding
15 Contracting by negotiation
16 Types of contracts
17 Special contracting methods
27 Patents, data and copyrights
28 Bonds and insurance
35 Research and development contracting
36 Construction and architect-engineer contracts
38 Federal supply schedule contracting
44 Subcontracting policies and procedures
47 Transportation
51 Use of government sources by contractors

Part titles are the standard FAR part names.

Wiley notes that the second-round proposals go further than the interim class deviation text agencies have been using, and some fold in other pending rulemakings. Related actions this summer included a proposed consolidated security and supply chain framework (Part 40), a revised framework for controlled unclassified information, and updated Part 16 deviation text implementing an executive order on preferring fixed-price contracts.

A final set of four notices covering the remaining FAR parts is expected in 2026. Those will also be proposals; no final rules have been issued yet.

How the overhaul started. The Office of Management and Budget launched the Revolutionary FAR Overhaul on May 2, 2025 with memo M-25-25, implementing Executive Order 14275, “Restoring Common Sense to Federal Procurement,” according to Sheppard Mullin. In the first phase, the FAR Council drafted model deviations for all 53 FAR parts, agencies adopted them through class deviations, and the Council received nearly 1,600 comments. The stated goals are to return the FAR to its statutory basis, rewrite it in plain language and remove most non-statutory rules. The Council plans 12 proposed rules in total, with Part 52 clauses updated as it goes.

What the first set changed. The June proposals, which closed for comment on July 23, would cut about half of the information required for SAM.gov registration, raise sole-source approval authority to $10 million for Defense, NASA and Coast Guard contracting officers and to $900,000 elsewhere, and let agencies disclose redacted technical evaluations and source selection decisions in agency-level protests. They also proposed replacing mandatory audits of termination settlement proposals with a risk-based approach and shortening deadlines: settlement proposals would be due 90 days after termination rather than one year, and inventory schedules 60 days rather than 120. That change would not apply to commercial contracts under Part 12.

Timeline so far

Date Step
June 23, 2026 First set of proposed rules: 20 FAR parts and associated clauses
Summer 2026 Related proposals: Part 40 security and supply chain framework, controlled unclassified information, Part 16 fixed-price deviation text
Sept. 18, 2026 Second set of proposed rules: 16 FAR parts
Later in 2026 Final set of four notices covering the remaining parts
After comments Final rules, part by part

Each set carries a 30-day comment period. Check the docket for each notice for the exact closing date, since it runs from publication in the Federal Register.

Why the second set matters more to most suppliers

The first set covered foundational parts of the regulation. The second reaches the parts most suppliers deal with every day. Part 12 governs how agencies buy commercial products and services, Part 13 covers the simplified procedures used for smaller purchases, Part 15 covers negotiated competitions, and Part 16 decides which contract types agencies use. Part 44 changes matter to anyone selling as a subcontractor, because primes pass FAR requirements down through their supply chains. Even companies that never hold a federal contract directly can feel these changes through flow-down clauses.

How to comment

  1. Find the notice for the FAR part you care about on regulations.gov.
  2. Compare it with the current text and the class deviation your agencies are using.
  3. Explain the effect with specifics: cost, time, number of contracts affected.
  4. Propose wording. Comments that suggest alternative text are easier for drafters to use.
  5. Coordinate with your trade association, which may file a combined comment.

Who should pay attention

You are… Focus on Why
A commercial supplier selling to agencies Parts 12, 13, 38 Commercial terms, simplified buys and schedules
A services or construction contractor Parts 15, 16, 36 Competition rules and contract types, including fixed-price preference
A prime contractor Parts 9, 44 Responsibility determinations and subcontracting rules
An agency procurement team All, especially 8, 13, 15, 16 How you run acquisitions day to day

What procurement teams should do

  • Read the proposals that touch your contracts and comment during the 30-day window if a change would affect you.
  • Map current contracts to new rules. Note which clauses are likely to change at the next modification or option.
  • Watch fixed-price preference. If you sell services under cost-type contracts, prepare for more fixed-price structures.
  • Track the security framework. The proposed Part 40 consolidates supply chain and security requirements that affect suppliers.

What to watch next

  • The final set of proposed rules later in 2026.
  • Final rules after comments are reviewed.
  • Agency deviations that apply changes before final rules.

The bigger picture

The overhaul is meant to simplify federal buying and make it easier for commercial companies to sell to the government, the same goal behind the Pentagon’s move away from Cost Accounting Standards described in our defense supplier coverage.

Questions procurement teams are asking

What is the Revolutionary FAR Overhaul?

An effort to rewrite the Federal Acquisition Regulation, the rules for how U.S. agencies buy goods and services. After interim class deviations, it entered formal notice-and-comment rulemaking in June 2026.

Which FAR parts were in the September 2026 proposed rules?

Parts 8, 9, 12, 13, 14, 15, 16, 17, 27, 28, 35, 36, 38, 44, 47 and 51, with associated Part 52 clauses, according to Wiley.

Which FAR parts are in the second set of proposed rules?

Parts 8, 9, 12, 13, 14, 15, 16, 17, 27, 28, 35, 36, 38, 44, 47 and 51, covering areas such as commercial acquisitions, simplified procedures, negotiated contracting, contract types, schedules and subcontracting.

Do FAR changes affect subcontractors?

Yes. Prime contractors flow many FAR clauses down to their suppliers, so changes to parts such as 44 on subcontracting policies can reach companies that never hold a federal contract directly.

How we reported this

This story draws on 2 sources, listed below, and reflects figures as reported on September 25, 2026. The sections on why it matters and what procurement teams should do are Procurement Signal analysis. It is not legal or financial advice. See our editorial standards.

Sources

  1. Wiley — FAR Overhaul rulemaking
  2. Sheppard Mullin — Revolutionary FAR Overhaul update: rulemaking phase begins

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