Feds Launch 'Revolutionary' Paperwork Revolution
Published Date: 6/23/2026
Proposed Rule
Summary
The government is shaking up how it buys stuff by simplifying rules in parts 5, 24, and 29 of the Federal Acquisition Regulation. This change affects all federal agencies and contractors, aiming to save taxpayer money and cut red tape. Comments on the proposed changes are open until July 23, 2026, so get ready to weigh in!
Analyzed Economic Effects
10 provisions identified: 6 benefits, 0 costs, 4 mixed.
Public Announcement Threshold Raised to $5.5M
The rule increases the discretionary public announcement threshold for significant contract awards from $4,500,000 to $5,500,000 and makes public announcement permissive rather than mandatory. Agencies may choose whether to issue public announcements for awards below $5,500,000.
Commercial Rules Consolidated in FAR Part 12
Requirements related to commercial acquisitions are moved out of FAR Part 5 into FAR Part 12 so all commercial acquisition policies are in one place. The proposed change also updates prescriptions to make clause applicability to commercial products, commercial services, and COTS items explicit.
Privacy Clauses Apply to Commercial Acquisitions
The proposed rule explicitly applies FAR clauses 52.224-1 (Privacy Act Notification), 52.224-2 (Privacy Act), and 52.224-3 (Privacy Training) to commercial products, commercial services, and COTS items. It also proposes that clauses 52.224-2 and 52.224-3 flow down to commercial subcontracts.
Certain Tax Clauses Apply to Commercial Work
The FAR Council proposes that certain tax-related clauses — including 52.229-6 (Taxes‑Foreign Fixed‑Price Contracts), 52.229-11 (Tax on Certain Foreign Procurements—Notice and Representation), and 52.229-12 (Tax on Certain Foreign Procurements) — will apply to commercial products, commercial services, and COTS items.
Presolicitation Threshold Raised to $45,000
If you sell to the Federal Government, the lower presolicitation posting threshold in FAR Table 5-2 is increased from $25,000 to $45,000. That means more lower-value opportunities may follow the shorter 10-day minimum posting period instead of the prior longer posting tier.
Use of Purchase/Fleet Card as Tax Exemption Evidence
FAR 29.304(b) is revised to clarify that a Government Purchase Card or Fleet Card is acceptable evidence to support a claim for exemption from state or local taxes when contracting with the Government.
Privacy Training Section Removed (Duplication)
The rule removes FAR section 24.301 (Privacy Training) because it duplicated clause 52.224-3, consolidating the training requirement into the clause instead of the part.
No Change for Contracts at or Below the SAT
The proposed rule states it would not change the prescriptions of the included provisions and clauses with respect to applicability to solicitations and contracts valued at or below the simplified acquisition threshold (SAT).
Afghanistan Tax Clauses Removed (Unmappable)
The rule removes FAR 29.402-4 and associated clauses and definitions tied to taxes for foreign contracts in Afghanistan (including clauses 52.229-13 and 52.229-14) because the relevant Status of Forces Agreement expired in 2021.
Small Businesses Must Familiarize with RFO Rewrites
All small entities that want to contract with the Federal Government will need to review the reorganized and streamlined FAR; the proposal notes 401,196 entities in SAM were small for at least one NAICS code as of January 2026. Familiarization costs are described as minimal and one-time.
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Key Dates
Department and Agencies
Related Federal Register Documents
2026-19160, Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 16, 17, and 35
The government is shaking up how it buys stuff by simplifying key contract rules in parts 16, 17, and 35 of the Federal Acquisition Regulation. This change affects federal agencies and contractors, aiming to cut red tape and save taxpayer money. Comments on the proposed changes are open until October 19, 2026, so get ready to weigh in!
2026-20270, Information Collection; Presolicitation Notice and Response
The government wants to keep collecting info about presolicitation notices, which help agencies plan buying stuff. They’re asking the public to share thoughts on how useful this info is and how to make it easier to provide. This extension would last three more years, with comments due by December 1, 2026, but no new costs are expected.
2026-20271, Information Collection; Federal Acquisition Regulation Part 11 Requirements
The government agencies in charge of buying stuff (like DoD, NASA, and GSA) want to keep collecting info under a rule called FAR Part 11 for three more years. They’re asking the public to share thoughts by December 1, 2026, on how to make this info collection easier and more useful. This won’t cost extra money but helps keep government buying smooth and clear.
2026-20127, Submission for OMB Review; Acquisition 360 Voluntary Survey
The government is asking for approval to keep using the Acquisition 360 Voluntary Survey, which lets companies give feedback on how the government handles contract talks and debriefings. This survey helps agencies improve how they work with vendors before awarding contracts. If you’re a business interested in government contracts, your input matters! Comments on this plan are open until November 2, 2026, and there’s no cost to participate.
2026-20128, Submission for OMB Review; Preaward Survey Forms (Standard Forms 1403, 1404, 1405, 1406, 1407, and 1408)
The government is asking to keep using six preaward survey forms that help check if contractors can do the job before signing a contract. This affects contractors and contracting officers who need to prove financial strength, reliability, and ability to deliver on time. Comments on this request are open until November 2, 2026, with no new costs expected.
2026-20126, Submission for OMB Review; Certain Federal Acquisition Regulation Part 28 Requirements
If you’re a contractor working with the federal government, you’ll want to know that some paperwork rules about bonds and payment protections are up for review and extension. These rules help make sure contractors provide the right guarantees on projects, especially construction ones over $35,000. Comments on these rules are open until November 2, 2026, so get ready to weigh in if this affects you!
Previous / Next Documents
Previous: 2026-12560, Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 6, 7, 10, 18, 26, 37, and 41
The government is shaking up the Federal Acquisition Rules to make buying smarter, faster, and less wasteful for everyone involved—from agencies to contractors. These changes cut red tape in key areas like planning, competition, and small business support, aiming to save taxpayer money and speed up deals. If you work with federal contracts, get ready to adapt by late July 2026 when public feedback closes!
Next: 2026-12562, Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 3 and 49
The government is shaking up how it buys stuff by cutting confusing rules in parts 3 and 49 of the Federal Acquisition Regulation. This change affects contractors and agencies, aiming to save taxpayer money and speed up buying processes. Comments are open until July 23, 2026, so jump in and share your thoughts!