Feds Launch Revolutionary Acquisition Rule Cleanup
Published Date: 6/23/2026
Proposed Rule
Summary
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!
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Non‑statutory Rules Moved to Guidance
If you sell to the Federal Government, the rule strips non‑statutory ‘‘how to’’ requirements out of FAR parts 3 and 49 and moves many of those items into non‑regulatory guidance (like the FAR Companion). The rule keeps statutory obligations but removes duplicative or obsolete regulatory text to make compliance simpler and clearer.
Stronger Protections for Bid Markings
If you submit proposals, contracting officers must now notify you and provide a written justification period before canceling or ignoring markings on bid or proposal information. The rule also states that proposals remain exempt from disclosure under 41 U.S.C. 4702 regardless of marking disputes and aligns marking review with procurement integrity procedures.
Audits for Settlements Become Risk‑Based
The rule would change FAR 49.107 so audits of prime contractor and subcontractor termination settlement proposals are permissive and risk‑based instead of mandatory. The certified cost or pricing data threshold is removed as an automatic trigger, giving the termination contracting officer discretion to require audit support when risk warrants it.
Shorter Deadlines for Termination Submissions
The rule shortens several contract termination deadlines: inventory schedules drop from 120 days to 60 days after termination, inventory extension requests must be made within 30 days of termination notice, termination settlement proposals drop from 1 year to 90 days, and contractor extension requests drop from 1 year to 60 days. Contractors may still request more time when justified.
Clearer Clause Applicability and Subcontract Flow‑Downs
The rule updates clause prescriptions to clearly show when specific FAR clauses apply to commercial products, COTS items, and commercial services, and clarifies whether clauses must flow down to commercial subcontracts. The preamble includes tables showing proposed applicability for many clauses (for example, several 52.203 clauses are marked to apply to commercial products and services).
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Key Dates
Department and Agencies
Related Federal Register Documents
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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!
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The USDA is proposing to lower the value used to calculate extra fees on imported cotton, so importers pay the same as U.S. cotton growers. This update keeps the fees fair and reflects changes since 2024. Importers and businesses dealing with cotton products should weigh in by July 23, 2026, before the new rules take effect.