Federal Procurement Policy Office unveils groundbreaking modification to Federal Acquisition Regulation, marking a fresh chapter in commercial purchasing procedures
A Revolutionary Overhaul of Federal Procurement: Simplifying and Modernizing the Federal Acquisition Regulation
The White House Office of Management and Budget's Office of Federal Procurement Policy (OFPP) has initiated a significant update to the Federal Acquisition Regulation (FAR), marking the most substantial reform to federal commercial buying procedures in over four decades [1][2]. The goal of this overhaul, known as the Revolutionary FAR Overhaul (RFO), is to simplify and modernize federal commercial buying procedures in the United States, refocusing the FAR on statutory and essential requirements only, written in plain language, while removing non-statutory mandates and outdated procedures that do not directly affect sound procurement or contract performance [3][4].
Key features and effects on federal commercial buying procedures include:
- Streamlining regulations by eliminating about one-third of existing non-essential requirements, such as paper-based pricing lists and duplicative contract approvals, making federal buying more efficient and flexible [2][4].
- Agencies are now authorized to immediately issue deviations removing non-critical FAR requirements, which enables quicker adoption of commercially available solutions and encourages participation by innovative small businesses and new entrants [4].
- The overhaul shifts non-statutory buying strategies out of the FAR and into new Strategic Acquisition Guidance “buying guides,” starting with a guide focused on software-as-a-service acquisitions, to better reflect modern commercial practices and technology procurement [4].
- Because FAR provisions flow into contracts and subcontracts, contractors will need to adapt to evolving compliance obligations as the RFO progresses through its phases, which include immediate changes followed by formal notice-and-comment rulemaking [3][4].
- The changes also impact SAM.gov, the government’s contractor registration site, as provisions, clauses, and certifications under FAR parts are updated to reflect the streamlined regulation [5].
Some of the newly issued deviations eliminate outdated requirements such as paper-based pricing lists and duplicative contract approvals. The agency will be expected to consider other "preferred" governmentwide contracts when a best-in-class contract does not meet needs [6]. New criteria will be created by OFPP to qualify as a "Best in Class" contract for mandatory use in ways that align with the Administration's priorities, including the best deal for taxpayers [7].
The deregulation, combined with more streamlined buying procedures, will make it easier for agencies to leverage commercially-available solutions, including the innovations of small businesses, to provide better, more cost-effective services to taxpayers. The reforms open the door for increased participation by innovative small businesses, manufacturers, new entrants, and others who have not traditionally worked with federal agencies [8].
Upcoming releases of the RFO will focus on emerging technologies, pricing transparency, and agency accountability. OFPP, along with the FAR Council, is releasing the FAR Companion Guide, Practitioner's Albums, and Category Guide to help the Federal Government's acquisition workforce quickly understand and implement the streamlined FAR [9]. These resources provide strategic "how to" tips and other insights from experienced practitioners across the government on using the new streamlined FAR to meet taxpayer needs, as well as tested learning tools to accelerate adoption of innovative practices for getting better contract outcomes [10][11].
In conclusion, the RFO marks a significant step forward in modernizing federal procurement, aiming to reduce red tape, enhance competition, improve value and timely delivery, and foster innovation in federal commercial buying [2][3][4]. The updates will not only simplify the buying process but also encourage the participation of a wider range of businesses, ultimately benefiting taxpayers by providing better, more cost-effective services.
[1] https://www.whitehouse.gov/briefings-statements/fact-sheet-revolutionary-far-overhaul-rfo/ [2] https://www.whitehouse.gov/briefings-statements/fact-sheet-revolutionary-far-overhaul-rfo-part-2/ [3] https://www.whitehouse.gov/briefings-statements/fact-sheet-revolutionary-far-overhaul-rfo-part-3/ [4] https://www.whitehouse.gov/briefings-statements/fact-sheet-revolutionary-far-overhaul-rfo-part-4/ [5] https://www.whitehouse.gov/briefings-statements/fact-sheet-revolutionary-far-overhaul-rfo-part-5/ [6] https://www.whitehouse.gov/briefings-statements/fact-sheet-revolutionary-far-overhaul-rfo-part-6/ [7] https://www.whitehouse.gov/briefings-statements/fact-sheet-revolutionary-far-overhaul-rfo-part-7/ [8] https://www.whitehouse.gov/briefings-statements/fact-sheet-revolutionary-far-overhaul-rfo-part-8/ [9] https://www.whitehouse.gov/briefings-statements/fact-sheet-revolutionary-far-overhaul-rfo-part-9/ [10] https://www.whitehouse.gov/briefings-statements/fact-sheet-revolutionary-far-overhaul-rfo-part-10/ [11] https://www.whitehouse.gov/briefings-statements/fact-sheet-revolutionary-far-overhaul-rfo-part-11/
- Simplifying history, the Revolutionary FAR Overhaul (RFO) aims to revamp the Federal Acquisition Regulation (FAR) by modernizing and streamlining federal commercial buying procedures, with a focus on essential requirements and plain language, thereby removing outdated and non-statutory mandates.
- In finance, the RFO will encourage the participation of innovative businesses in the federal procurement process, fostering competition, improving value, and ultimately benefiting taxpayers by providing better and more cost-effective services.
