Feds Promise Revolution in Boring Contract Rules Overhaul
Published Date: 9/18/2026
Proposed Rule
Summary
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!
Analyzed Economic Effects
11 provisions identified: 9 benefits, 1 costs, 1 mixed.
Fixed-Price Procurement Preferred
The proposed rule makes fixed-price contracts with performance-based terms the default and adds new written justification and agency-head approval requirements when an agency uses other contract types (see new 16.104). Agencies must follow those new approval steps at specified contract-value thresholds.
Offerors Can Propose New Contract Types
The rule would let offerors propose alternative contract types that are not explicitly listed in the FAR (see Alternate I to provision 52.216-1). You could propose a different contract form if it promotes the Government's best interest and is not prohibited by law.
Consumption-Based Solutions Treated as Fixed-Price
The rule defines "consumption-based solution" and says metered supplies or services (for example, cloud capacity billed by usage) may be bought as fixed-price units; buying fixed-priced units on usage is treated as a firm-fixed-price contract.
On‑Ramps and Off‑Ramps for Multi‑Award Contracts
The proposed rule would add policies for "on-ramping" (adding) and "off-ramping" (removing) contractors from multiple-award contracts and adds Alternates I and II to clause 52.216-22 to provide various cancellation policies. This is meant to keep vendor pools current and competitive.
Less Burden for Cost Audit Submissions
The proposed revisions to clause 52.216-7, Allowable Cost and Payment, remove several detailed data requirements (for example, certain subcontract information, detailed time-and-materials cost breakdowns, payroll reconciliation) and relocate summary information to simplify incurred cost audit submissions and speed contract closeout.
R&D Preference for Well‑Established Firms Removed
The proposed FAR part 35 changes would remove language that favored providing solicitations to only a "reasonable number of responsible sources" and the preference for "well-established" entities. The FAR Council says this preference conflicts with full and open competition and publicizing rules.
Blanket Purchase Agreements Allowed Under Multi‑Award Contracts
If finalized, contracting officers could issue Blanket Purchase Agreements (BPAs) under multiple-award contracts using fair opportunity procedures when authorized by the contract. This would let agencies place BPAs within the scope of existing multi-award vehicles.
Brief Explanations for Unsuccessful Order Competitors
For task or delivery orders with total price above $7,500,000, contracting officers must notify contractors who competed but were not awarded and follow FAR part 15 procedures for postaward notifications or debriefings. For orders above the simplified acquisition threshold but not exceeding $7,500,000, contracting officers must provide a brief explanation on written request.
Clarified Cost‑Incentive Contract Cost Accounting
The rule clarifies that fixed-price cost incentive contracts are hybrid contracts and that established final indirect cost rates (FICR) must be used to calculate costs. If a contractor lacks an established FICR, they should follow the process in paragraph (d) of clause 52.216-7 to establish one.
Modernized Options for Quantities and Extensions
The proposed rule removes limitations so clauses 52.217-6 and 52.217-7 (Option for Increased Quantity) can apply to services as well as supplies, and renames 52.217-8 to Option to Extend so it can be used for extending ordering periods or periods of performance for up to six months to ensure continuity.
Reverse Auction Ban for Complex Construction
The proposed rule implements a statutory prohibition on using reverse auctions for "complex, specialized, or substantial design and construction services" above the simplified acquisition threshold (SAT). It adds a definition for these services and updates related clauses (52.217-10 through 52.217-12).
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Key Dates
Department and Agencies
Related Federal Register Documents
2026-19159, Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 9, 27, and 47
The government is shaking up how it buys stuff by cutting out confusing rules that waste taxpayer money. This big update affects companies and agencies working with the government, making the process simpler and smarter. If you want to weigh in, send your comments by October 19, 2026, before these changes become official and start saving money and time.
2026-19162, Federal Acquisition Regulation: Revolutionary FAR Overhaul Parts 8, 12, 13, 15, 38, 44, and 51
The government is shaking up how it buys stuff by simplifying big rules that slowed things down and wasted money. This affects contractors, agencies, and taxpayers by cutting red tape in key buying steps, making deals faster and smarter. Comments on these changes are open until October 19, 2026, so get ready for a smoother, more efficient federal buying process soon!
2026-19158, Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 14, 28, 36, and 52
The government is shaking up how it buys stuff by simplifying key rules in the Federal Acquisition Regulation. This affects contractors and agencies working with parts 14, 28, 36, and 52, aiming to save taxpayer money and cut red tape. Comments on these changes are open until October 19, 2026, so get ready to weigh in!
2026-16680, Submission for OMB Review; Privacy Training
Under the provisions of the Paperwork Reduction Act, the Regulatory Secretariat Division has submitted to OMB a request to review and approve an extension of a previously approved information collection requirement regarding privacy training.
2026-16681, Submission for OMB Review; Prohibition on Contracting With Entities Using Certain Telecommunications and Video Surveillance Services or Equipment
Under the provisions of the Paperwork Reduction Act, the Regulatory Secretariat Division has submitted to OMB a request to review and approve an extension of a previously approved information collection requirement regarding the prohibition on contracting with entities using certain telecommunications and video surveillance services.
2026-16678, Submission for OMB Review; Contract Financing
The government is asking for approval to keep collecting info from contractors about how they want to get paid during contracts. This affects companies working with the government, who must share details about payment schedules and amounts. Comments are open until September 14, 2026, so now’s the time to speak up if you have thoughts!
Previous / Next Documents
Previous: 2026-19159, Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 9, 27, and 47
The government is shaking up how it buys stuff by cutting out confusing rules that waste taxpayer money. This big update affects companies and agencies working with the government, making the process simpler and smarter. If you want to weigh in, send your comments by October 19, 2026, before these changes become official and start saving money and time.
Next: 2026-19162, Federal Acquisition Regulation: Revolutionary FAR Overhaul Parts 8, 12, 13, 15, 38, 44, and 51
The government is shaking up how it buys stuff by simplifying big rules that slowed things down and wasted money. This affects contractors, agencies, and taxpayers by cutting red tape in key buying steps, making deals faster and smarter. Comments on these changes are open until October 19, 2026, so get ready for a smoother, more efficient federal buying process soon!