FAR 2.0: The Big Overhaul That’s Changing How the Government Buys

If you work in or around federal contracting, you’ve probably heard the buzz: the Federal Acquisition Regulation (FAR) is getting its biggest facelift in over 40 years. This massive rewrite, called FAR 2.0 or more formally, the Revolutionary FAR Overhaul (RFO), isn’t just a minor tweak. It’s designed to be a full-scale modernization to bring some much-needed common sense and simplicity to the complex world of government procurement.

Kicked off by Executive Order 14275 in April 2025, the overhaul aims to cut the red tape, ditch outdated rules, and make the FAR more practical and efficient, especially for small businesses and newcomers to federal contracting. Agencies like the GSA, DoD, and NASA, along with the Office of Federal Procurement Policy (OFPP), are leading the charge.

Goals of FAR 2.0

One of the biggest goals of FAR 2.0 is to make the FAR easier to understand. That means conforming it to plain language, cutting out rules that aren’t required by law, and focusing more on results than rigid processes. Instead of being stuck in procedural quicksand, the idea is that contracting officers and businesses will have more room to make smart, flexible decisions.

Another major change is the move toward what’s being called “Strategic Acquisition Guidance” (SAG). Think of this as helpful how-to content — like buying guides — that replaces overly prescriptive rules with practical tips for buying smarter. These guides aren’t regulations, but they will be there to help agencies get better results without getting lost in legal jargon.

How FAR Changes are Being Implemented

The implementation is happening in two phases. First, agencies are using model class deviations — temporary rule changes — to test out the new approach. Then, those changes will go through the normal rulemaking process, complete with public comments. The first wave of rewrites, rolled out in May 2025, covered FAR Parts 1, 34, and 52.

Perhaps the most impactful changes so far pertain to FAR Part 10, which deals with market research — essentially, how the government determines what’s available in the marketplace before making a purchase. Under FAR 2.0, Part 10 has been streamlined to give agencies more freedom in how they do market research. By virtue of the most recent changes, agencies are no longer locked into specific methods. Whether it’s talking to vendors, holding reverse industry days, or setting up panels of experts, the approach can now be tailored to fit the acquisition.

There’s also a much stronger emphasis on using commercial solutions. Agencies are encouraged to look at what’s already being offered in the private sector — or available through existing contracts—before developing new requirements from scratch. This serves the purpose of saving time and taps into the innovation happening in the commercial market.

Another FAR Part 10 update: market research is now required before several major acquisition steps, like developing requirements documents or issuing certain solicitations. So, if you’re in the contracting space, expect more questions and outreach early in the process — especially for projects above the simplified acquisition threshold. Interestingly, while many older rules are being dispensed or rewritten, FAR Part 10 will retain a few cornerstones. For example, FAR 52.210-1 (Market Research) still applies for big-ticket, non-commercial buys over $6 million. So, while the new FAR is more flexible, it’s not completely unstructured.

According to the EO, the OFFP, FAR Council, and agency leadership have 180 days from the issuance of the EO, mid-October, to complete the FAR overhaul. In the meantime, contractors should keep a close eye on updates, especially on Acquisition.gov, where new buying guides and deviation language are being posted regularly. It’s also smart to get involved in the public comment process — this is your chance to help shape the rules you work under every day.

FAR 2.0 Key Takeaways

Bottom line: FAR 2.0 is a big deal. Its aim is to bring clarity where there was confusion, flexibility where there was rigidity, and a modern mindset to a system that’s long overdue for one. Whether you’re a contracting officer, a government contractor, or just curious about federal acquisition, this overhaul is worth watching — and even more worth understanding.

Ed DeLisle is a partner in the Government Contracts Group at Thompson Hine, LLP in Washington, D.C. He counsels his clients on government compliance and procurement matters and represents his clients on bid protests and claims in connection with government work.