Update on Recent Transformations by the FAR Revolutionary Group

Update on Recent Transformations by the FAR Revolutionary Group - Uncovering the Modifications Made

The Federal Acquisition Regulation (FAR) is undergoing a significant overhaul, with the latest revisions aiming to streamline procedures, clarify socioeconomic program requirements, and modernize contracting processes.

One of the key areas of focus is Part 12, which emphasizes commercial acquisition and seeks to simplify and streamline the process. In fact, one-third of the clauses previously associated with Part 12 have been removed. This part of the FAR now allows contracting officers to use simplified acquisition procedures up to a value of $7.5 million, a significant increase from the previous limit.

The construction industry is expected to be affected by these changes, as construction projects under $7.5 million may now be treated as commercial items. This could lead to a more efficient and cost-effective approach to construction projects within this value range.

Another groundbreaking development is the inclusion of the Small Business Innovation Research (SBIR) program into existing Best-in-Class (BIC) contracts. This means that commercialized SBIR technologies can now be incorporated into procurements, even if they are not already available on a BIC contract. This is achieved by requiring agencies to use appropriate acquisition strategies to integrate such SBIR innovations into their procurements while adhering to FAR guidelines.

However, the SBIR program may need to be re-evaluated in light of these changes, as commercialized SBIRs may no longer have the same advantages if they are not on a Best-in-Class contract.

The FAR revisions also prioritise governmentwide best-in-class contracts, requiring contracting officers to first consider these contracts as a source of supply. Contracting officers are encouraged to conduct market research and use RFIs, industry days, and structured conversations with offers to understand what's available.

The ordering procedures for schedules have been moved from the FAR to the General Services Administration's (GSA) Multiple Award Schedule (MAS) programme, making it easier to do a single-award BPA and streamlining the schedules program. By moving the ordering procedures to the MAS, GSA has more independence to control the future of the schedules program.

Emily Murphy, a Senior Fellow at George Mason University Baroni Center for Government Contracting, has highlighted Parts 8 and 12 as the most groundbreaking parts of the recent FAR revisions. She also recommends reading the updated GSAM 538 for those working in the schedule space.

The changes to the FAR are being compared to a jigsaw puzzle, with only a few pieces revealed at a time. The FAR overhaul aims to simplify compliance and empower contracting officers, with more parts of the regulation yet to be seen, including Parts 14, 19, and 15.

Update on Recent Transformations by the FAR Revolutionary Group - Uncovering the Modifications Made