# 2026-12561: Feds Launch 'Revolutionary' Paperwork Revolution

2026-12561, Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 5, 24, and 29, is a Federal Register proposed rule from Management and Budget Office, Federal Procurement Policy Office, Defense Department, General Services Administration, National Aeronautics and Space Administration published 2026-06-23, effective Interested parties should submit written comments to the Regulatory Secretariat Division at the address shown below on or before July 23, 2026, to be considered in the formation of the final rule.; PRIA reads it as touching household money (as of 2026-06-30).

- Canonical: https://policyrisk.com/federal-register/2026-12561
- As of: 2026-06-30
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2026-12561
- Title: Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 5, 24, and 29
- Type: Proposed Rule
- Agencies: Management and Budget Office; Federal Procurement Policy Office; Defense Department; General Services Administration; National Aeronautics and Space Administration
- Citation: 91 FR 37676
- Published: 2026-06-23
- Effective: Interested parties should submit written comments to the Regulatory Secretariat Division at the address shown below on or before July 23, 2026, to be considered in the formation of the final rule.
- Comments close: 2026-07-23
- Significant: no
- Touches household money: yes
- Regulation identifier numbers: 9000-AO90
- Last updated: 2026-06-30

## In one line

Feds Launch 'Revolutionary' Paperwork Revolution

## 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!

## Abstract

OFPP, DoD, GSA, and NASA (collectively referred to as the Federal Acquisition Regulatory Council or FAR Council) are proposing to amend the Federal Acquisition Regulation (FAR) to implement Executive Order (E.O.) 14275, Restoring Common Sense to Federal Procurement. The E.O. directs the elimination of excessive acquisition regulations to stop the inefficient use of American taxpayer dollars. The FAR Council is issuing twelve proposed rules that collectively will streamline the FAR in its entirety. This rule proposes revisions to FAR parts 5, 24, 29, and 52.

## Effects PRIA read

- Presolicitation Threshold Raised to $45,000: benefit, low. 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.
- Public Announcement Threshold Raised to $5.5M: mixed, medium. 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: benefit, medium. 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: benefit, medium. 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: mixed, medium. 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 servic…
- Use of Purchase/Fleet Card as Tax Exemption Evidence: benefit, low. 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): benefit, low. 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: mixed, low. 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): benefit, low. 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: mixed, low. 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.

## Related documents

- [2026-19160](https://policyrisk.com/federal-register/2026-19160): Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 16, 17, and 35, 2026-09-18
- [2026-20270](https://policyrisk.com/federal-register/2026-20270): Information Collection; Presolicitation Notice and Response, 2026-10-02
- [2026-20271](https://policyrisk.com/federal-register/2026-20271): Information Collection; Federal Acquisition Regulation Part 11 Requirements, 2026-10-02
- [2026-20127](https://policyrisk.com/federal-register/2026-20127): Submission for OMB Review; Acquisition 360 Voluntary Survey, 2026-10-01
- [2026-20128](https://policyrisk.com/federal-register/2026-20128): Submission for OMB Review; Preaward Survey Forms (Standard Forms 1403, 1404, 1405, 1406, 1407, and 1408), 2026-10-01
- [2026-20126](https://policyrisk.com/federal-register/2026-20126): Submission for OMB Review; Certain Federal Acquisition Regulation Part 28 Requirements, 2026-10-01

## Sources
- [2026-12561 on federalregister.gov](https://www.federalregister.gov/documents/2026/06/23/2026-12561/federal-acquisition-regulation-revolutionary-federal-acquisition-regulation-overhaul-parts-5-24-and)
- [2026-12561 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-06-23/pdf/2026-12561.pdf)

## Related
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- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2026-12561 (as of 2026-06-30).