White House Unveils Sweeping FAR 2.0 Reforms to Cut Bureaucracy and Accelerate Government Buying

Publication Date: August 16, 2025

Overview

The White House announced a major update to the Federal Acquisition Regulation (FAR) on August 15, 2025, through the Office of Federal Procurement Policy (OFPP), as part of the ongoing Revolutionary FAR Overhaul (RFO), also known as FAR 2.0.

This reform aims to simplify federal procurement processes by eliminating unnecessary rules, promoting plain-language guidelines, and prioritizing performance over paperwork. By focusing on statutory essentials, the changes seek to enhance competition, reduce costs for taxpayers, and facilitate access for innovative suppliers, including small businesses.

This marks the most substantial revision to the FAR in over 40 years, building on earlier executive orders to modernize how the U.S. government, the world’s largest buyer, acquires goods and services.

Facts

The FAR, established in 1984, serves as the primary regulation governing federal agencies’ purchases of supplies and services using appropriated funds, ensuring consistency, fairness, and transparency.
Agencies are now authorized to eliminate one-third of contract requirements that are not mandated by statute or executive orders and have minimal impact on outcomes, effective immediately.
The update streamlines commercial buying procedures to better leverage commercially available solutions, with a focus on innovations from small businesses and new market entrants.
OFPP released supporting resources, including the FAR Companion Guide with strategic tips for using the streamlined FAR, Practitioner’s Albums for learning tools on innovative practices, and a Category Guide with advice on maximizing best-in-class government-wide contracts.
Agencies must prioritize government-wide contracts, such as “best-in-class” or “preferred” options, over maintaining their own; new criteria will qualify contracts for mandatory use aligned with administration priorities like taxpayer value.
Specific actions include retiring FAR Parts 38 and 51, consolidating information and supply chain security policies into a single part, eliminating outdated requirements like paper-based pricing lists and duplicative approvals, and modernizing FAR Part 8.
Upcoming RFO phases will address emerging technologies, pricing transparency, and agency accountability.
The RFO has already provided relief from over 500 burdensome requirements, with a goal of eliminating more than 1,000 in total.

Perspectives

Office of Management and Budget (OMB)/Office of Federal Procurement Policy (OFPP): As the lead agency, OMB emphasizes that the reforms shift focus from bureaucracy to results. Senior Advisor Dr. Kevin Rhodes stated, “The old rules were built for paperwork; the new rules are built for performance. With each deviation, we’re clearing out red tape and making space for better value, timely delivery, and more robust competition.”
Department of Defense (DoD): DoD supports the overhaul for its potential to enhance mission delivery. Principal Director John M. Tenaglia noted, “This Revolutionary FAR Overhaul, coupled with our overhaul of the DFARS, will significantly streamline business practices enabling DoD to timely deliver capabilities and lethality for our nation’s warfighters.”
General Services Administration (GSA): GSA views the changes as a catalyst for efficiency and industry engagement. Acting Administrator Stephen Ehikian said, “This is about permanent change in how the government partners with the private sector to accelerate innovation and promote competition. We’re cutting the outdated red tape and focusing on value for American taxpayers.”
Coalition for Government Procurement: This industry group advocates for reducing non-essential clauses in commercial contracts. In their white paper on rolling back provisions imposed since the Federal Acquisition Streamlining Act of 1994, they argue that such reforms will lower barriers for contractors and align with statutory intent to promote commercial practices.
PilieroMazza (Government Contracts Law Firm): Representing contractors, the firm expresses caution about the implementation process. They stated that the “adopt first, finalize later” strategy for deviations “risks undermining public participation, potentially turning the rulemaking process into a rubber stamp,” highlighting concerns over transparency and regulatory stability.
Public Procurement International (Procurement Policy Analysts): This group critiques the phased approach for lacking full explanations and coordination. They noted that while changes are modest, “the implementing class deviations are being issued without the normally required notice and comment,” which could complicate enforcement and invite legal challenges.

Considerations

Streamlining the FAR could reduce administrative burdens in the short term, leading to faster acquisitions and cost savings, while fostering long-term innovation by attracting more small businesses and startups to federal contracting.
Enhanced use of government-wide contracts may standardize procurement across agencies, improving efficiency and competition, but requires robust criteria to ensure “best-in-class” designations prioritize taxpayer value without limiting options.
Centralizing supply chain security policies simplifies compliance for contractors and agencies, potentially strengthening national security in the near term, though ongoing updates will be needed to address evolving threats like cybersecurity risks.
The elimination of non-statutory rules may increase workforce flexibility, but could create inconsistencies if agencies adopt deviations unevenly, underscoring the need for comprehensive training to maintain fairness.
Broader adoption of plain-language guidelines and non-regulatory tools like buying guides supports agile responses to emerging technologies, positioning the U.S. to lead in global procurement practices over time.