On September 18, 2026, the Revolutionary FAR Overhaul (“RFO”) continued its rulemaking phase with the release of a second batch of four proposed rules (the “Proposed Rules”). Collectively, the Proposed Rules cover an additional 16 parts of the FAR (plus associated Part 52 clauses). The Proposed Rules are available here: FAR Case 2026-003, FAR Case 2026-006, FAR Case 2026-010, and FAR Case 2026-011. Comments for all four New Proposed Rules are due by October 19, 2026.
Where Are We In The RFO Process?
With the June 23, 2026 publication of the first four proposed rules in the Federal Register (see our blog here), we entered Phase 2 of the RFO process – the official rulemaking phase – where the FAR Council will eventually publish all FAR Parts as proposed rules, solicit feedback from industry, and then issue final rules. The RFO Phase 2 rule-making process has been organized in 12 FAR Cases. The second batch of four proposed rules was released last night, continuing that process. If you’re keeping score, for proposed rules: 8 FAR Cases down, 4 to go.
Overview of The Second Four Proposed Rules
So, what do these next four Proposed Rules cover? We’re glad you asked! Below we provide a high-level overview of what is covered in each Proposed Rule, and here’s a handy table:
|
FAR Case |
FAR Parts Covered |
Comment Deadline |
|
2026-003 |
8, 12, 13, 15, 38, 44 and 51 |
October 19 |
|
2026-006 |
16, 17 and 35 |
October 19 |
|
2026-010 |
14, 28 and 36 |
October 19 |
|
2026-011 |
9, 27 and 47 |
October 19 |
FAR Case 2026-003, Covering Parts 8, 12, 13, 15, 38, 44 and 51 (and associated Part 52 clauses)
This Proposed Rule covers the following FAR Parts:
- Part 8 - Required Sources of Supplies and Services
- Part 12 - Acquisition of Commercial Products and Commercial Services
- Part 13 - Simplified Procedures for Noncommercial Acquisitions
- Part 15 - Contracting by Negotiation
- Part 38 - [Removed and Reserved]
- Part 44 - Subcontracting Policies and Procedures
- Part 51 - [Reserved]
This is one of the more significant Proposed Rules in the second batch, covering seven FAR Parts that touch on some of the most commonly used procurement vehicles and procedures. The most significant substantive changes appear to be to Parts 8, 12, 13, and 15.
Starting with Part 8, the FAR Council removed the Best-in-Class mandate and instead made it a prioritized consideration after determining there is no available Office of Federal Procurement Policy “required use” contract or BPA that meets the need of the agency. This is a meaningful rollback from the model deviation. Industry argued that the Best-in-Class mandate would reduce small business participation, reduce competition, and undermine the government's commitment to supporting small businesses. The result of this change is that it provides the acquisition team more discretion to procure commercial products and commercial services from governmentwide vehicles that best support the agency mission, and allows for continued competition amongst small businesses.
For Part 12, the FAR Council addressed several industry concerns. Industry noted that the RFO Part 12.200(b) language was unclear and created confusion by giving directions for procuring construction under FAR Part 12 but then requiring the use of FAR Part 36 for construction contracts. The FAR Council clarified that FAR Part 12 is to be used in conjunction with FAR Part 36 when “procuring construction as a commercial service.” The FAR Council also addressed the application of provisions and clauses: language was added to FAR 12.205(a) and (b) to direct acquisition professionals to incorporate clauses prescribed in other parts of the FAR only if the clause is explicitly prescribed for commercial acquisitions — preventing the incorrect inclusion of non-commercial clauses in commercial contracts and reducing administrative burden on both the government and contractors. Finally, the proposed rule requires set-asides for small business concerns in procuring supplies or services with an anticipated dollar value above the micro-purchase threshold but at or below the simplified acquisition threshold (with a cross-reference added to FAR Part 19).
Turning to Part 13, industry argued that requiring a Contracting Officer to make a Determinations and Findings (“D&F”) that only one source exists under FAR 13.101(b) contradicts the simplified nature of FAR Part 13. It appears the FAR Council agreed (sort of): the language was revised to delete the D&F requirement, stating instead that COs may solicit from a single source based on a “documented decision” to conduct a sole source acquisition. We’ll see if a “documented decision” is meaningfully different than a D&F, but the FAR Council explains that requiring a “documented decision” instead of a “D&F” reduces the administrative burden on COs while maintaining necessary accountability, ensuring that simplified acquisitions remain efficient and agile, allowing for faster procurement cycles without sacrificing the integrity of the decision-making process.
Part 15 contains perhaps the most headline-grabbing change in this Proposed Rule: a revision to the “late is late” rule. The proposed rule amends the policy to permit contracting officers (at their discretion) to accept late proposals when they determine that doing so is in the Government’s best interest and would not unduly delay the contract award. The FAR Council also expanded the definitions section to include definitions for “clarifications,” “competitive range,” and “negotiations,” attempting to enhance clarity and consistency of the rule.
FAR Case 2026-006, Covering Parts 16, 17 and 35 (and associated Part 52 clauses)
This Proposed Rule covers the following FAR Parts:
- Part 16 - Types of Contracts
- Part 17 - Special Contracting Methods
- Part 35 - Research and Development Contracting
This Proposed Rule contains meaningful updates to all three Parts, with particularly notable changes to Parts 16 and 17 that will have a direct practical impact on contracting officers and contractors alike.
For Part 16, first, on contract type monitoring: industry requested that contractors be required to provide tools to track usage and/or require notifications at predefined milestones. The FAR Council adopted notification requirements at milestones set by the 2026 National Defense Authorization Act (“NDAA”). Requiring specific notification requirements in the FAR is intended to allow for consistent application across the Federal Government and to make it easier for contractors to accommodate these notification thresholds. Second, on consumption-based solutions: industry requested clarification on the ability to establish consumption-based contract types by adding firm-fixed-unit-price type under fixed-price contracts. The FAR Council adopted consumption-based solutions under FAR 16.202, Firm-Fixed Price Contracts, empowering contracting officers with the explicit authority to establish consumption-based contract types, giving agencies the flexibility to acquire supplies and services based on actual usage while maintaining the structure and predictability of a fixed-price contract.
For Part 17, regarding options: the model deviation replaced the “reasonable likelihood” requirement for exercising contract options with a “probability” standard, which industry argued created a more ambiguous and potentially higher threshold, increasing administrative burden on defense contractors when building and pricing proposals. The FAR Council reverted to the “reasonable likelihood” language in the proposed rule, retaining a clear standard for exercising contract options and preventing unnecessary administrative burden and pricing complexity for defense contractors. The proposed rule expands the use of FAR Clause 52.217-8 (renamed “Option to Extend”) to cover both task-order contracts and delivery-order contracts for requirements other than services (expanding its reach to cover both services and supplies). The rationale here is to ensure the continuity of critical deliveries, particularly during unforeseen delays such as protests on follow-on IDIQ contracts, and to provide contracting officers with the flexibility to maintain uninterrupted operations and ordering periods without issuing sole-source bridge contracts.
For Part 35, the FAR Council made three changes aimed at promoting flexibility and competition in R&D contracting. First, the proposed rule reinstates previously removed language regarding the purpose and application of research and development, including types of agreements that may be entered into as a result of Broad Agency Announcements (“BAAs”) or other R&D solicitations, giving contracting officers clear, codified guidance on the appropriate types of agreements to use in these solicitations. Second, the proposed rule removes language requiring agencies to solicit from only “a reasonable number of responsible sources,” aligning with full and open competition requirements, ensuring capable start-ups and small businesses are not excluded from R&D opportunities, and expanding the pool of potential sources for R&D. Third, the proposed rule clarifies that FAR Part 35’s general R&D evaluation procedures can be used independently, combined with BAA procedures under FAR 35.102, or combined with FAR Part 15 evaluation procedures. This is intended to clarify that FAR Part 15 procedures are not required for BAAs and to give contracting officers maximum flexibility.
FAR Case 2026-010, Covering Parts 14, 28 and 36 (and associated Part 52 clauses)
This Proposed Rule covers the following FAR Parts:
- Part 14 - Sealed Bidding
- Part 28 - Bonds and Insurance
- Part 36 – Construction and Architect-Engineer Contracts
Here, it is worth highlighting two notable changes, both of which are focused on improving clarity and consistency.
For Part 14, industry requested greater specificity regarding the exceptions to the “late bid” rule in FAR 14.301. The FAR Council removed the description of the “acceptable evidence” exception from the “late bid” rule and added a definitions section in FAR 14.001, with a detailed definition of “acceptable evidence” now provided.
For Part 36, there is one notable change relating to debriefings. Industry noted that the rewrite of FAR Subpart 36.6 neither mentioned nor compelled the Government to provide feedback, as the debriefing language from legacy FAR 36.607(b) had been deleted. The proposed rule now includes instructions in FAR 36.202-3(g) regarding debriefings in accordance with FAR Part 15, aligning the debriefing process for construction and architect-engineer procurements with a consistent and standardized framework intended to provide contractors with a more predictable process for receiving feedback.
FAR Case 2026-011, Covering Parts 9, 27 and 47 (and associated Part 52 clauses)
This Proposed Rule covers the following FAR Parts:
- Part 9 - Contractor Qualifications
- Part 27 - Patents, Data, and Copyrights
- Part 47 – Transportation
Unlike some of the other Proposed Rules in this second batch, the FAR Council’s response to industry feedback for FAR Case 2026-011 was relatively limited. For Parts 9 and 27, the FAR Council considered the public feedback received but determined that the recommendations (e.g., refinements to the applicability of patent indemnity clauses in Part 27 and the scope of FAR 9.104-3(b) regarding contractor qualifications) were sufficiently addressed within the existing policy as proposed. Public feedback received for Part 47 was limited to administrative correction suggestions. As a result, contractors should not expect major substantive departures from the model deviations for these Parts, though the plain language revisions and structural reorganization that have characterized the RFO process throughout will still be reflected in the final text.
Conclusion
The Revolutionary FAR Overhaul continues to be a massive undertaking. While many of the revisions will not have a major impact on contractors (e.g., plain language edits, reorganization, streamlining, etc.), other changes will have significant impacts. We will continue to follow this process closely, and all contractors should do the same. As a reminder, the comment period for the second batch of four Proposed Rules closes October 19, 2026.
For additional guidance on FAR Overhaul developments, please review our latest blog posts here or visit our Revolutionary FAR Overhaul Tracker webpage.