Recent Updates on FAR Parts

The Federal Acquisition Regulation (FAR), the rulebook for how the United States buys goods and services, just received a major update. Since mid-July, there have been updates to FAR rules in an effort to reduce the word count and rewrite them in "plain language". These efforts are all because of the FAR Overhaul that President Trump signed on April 15th, 2025. Thus far, these rewrites have been successful, with nearly one-fifth of the word count already removed. However, these changes don't just impact readability, and regardless of the industry you operate in, understanding these changes could shift how you pursue opportunities. Here's the essential information you need to know about the recent updates.

What's Changing?

The latest revisions from the Office of Federal Procurement Policy (OFPP) and FAR center around these specific parts:

• Part 35: Research & Development (R&D) Contracting
• Part 36: Construction and design contracts
• Part 29: Taxes
• Part 31: Contract Cost Disciplines and Procedures

Parts 35 & 36

The revisions that were made to these parts were the most significant. FAR Part 35 was 5,517 words about R&D contracting; now it's 2,871 words, with mostly duplicative guidelines being deleted. These changes:

• Added uncertainty to how the government will respond to small businesses in R&D projects
• Added flexibility to Statements of Work, allowing contractors flexibility defining solutions and deliverables
• Reduced the emphasis on sustainable, environmentally friendly designs in federal construction
• Increase options for defining R&D objectives, removing limitations on parties contracting for R&D

These shifts mark major changes for small businesses and firms that focus on innovation and R&D. These are shifts that may impact on how contracts are structured, evaluated, and awarded.

Parts 29 & 31

Part 29 of the rewrite deals with taxes, and Part 31 covers how contract pricing and costs are determined. The good news? These parts remained largely unchanged, which is a relief for contractors who use specialized account software and government-focused CPA's. Notable, FAR 35.006 had suggested, "the use of cost-reimbursement contract is usually appropriate" for R&D contracting. Eliminating FAR 35.006 may help enable start-ups and non-traditional vendors to participate in contracting, since agencies may now be more open to firm fixed price R&D arrangements.

Part 31 also saw some deletions. Many definitions were adjusted, including ones ties to labor, materials, and moving-related costs. This will likely result in higher compliance costs and more training for the transitions on these new regulations.

Mark Your Calendars

The FAR Council is open and accepting feedback for these regulation changes. Mark your calendars if you'd like to submit comments on any of the parts:

• Parts 29 & 31: By Septembers 1st, 2025
• Parts 35 & 36: By September 8th 2025
• Part 50: By September 15th, 2025

Federal contracting and the regulations regarding compliance are always changing. As these FAR regulation updates roll out, stay informed with our professional research team at JetCo Solutions. Our research tools keep up informed on all things GovCon, so get in touch with us today if you have any questions.