FAR Overhaul Watch
The government is rewriting the Federal Acquisition Regulation (FAR) using an unprecedented fast-track "class deviation" process, which was not intended for wholesale regulatory change—thereby circumventing the required transparency, accountability, and public comment processes established by the Administrative Procedure Act (APA).
Important Definitions:
- Class Deviation: Temporary exceptions to standard FAR rules, generally limited in scope and duration; however, the government's current FAR rewrite via deviations is neither temporary nor limited in scope, representing an unusual use.
- Administrative Procedure Act (APA): Federal law (5 U.S.C. §§ 551–559) requiring transparent and accountable regulatory rulemaking—including public notice, comment, and agency justification.
- Correct FAR Change Process: FAR changes must be proposed publicly via the Federal Register, include transparent public comment opportunities, detailed agency review and response, and clearly stated justification prior to enactment.
See the detailed tracking table below for ongoing updates.
| Date Issued | FAR Part | Action / Description | Compliance Commentary | Small Business Impact | How This Should Be Done (APA-compliant) |
|---|---|---|---|---|---|
| Apr 15, 2025 | N/A | Executive Order 14275 initiates FAR overhaul. | Policy directive; no immediate compliance issue. | Creates uncertainty; risks barriers for small businesses. | Explicitly mandate APA-compliant rulemaking upfront. |
| May 2, 2025 | N/A | OMB Memo M-25-25 directs FAR overhaul via novel use of class deviations. | Employs legally questionable framework circumventing required APA procedures. | Immediate market confusion; unclear rule landscape. | Mandate public notice, comment, formal Federal Register publication. |
| May 2, 2025 | Part 1 (FAR System) | FAR Council directly removes Subpart 1.5 (Public Participation); adds 4-year sunset on non-statutory rules. | No Federal Register publication; bypasses required public transparency. | Reduces accountability; restricts small businesses' advocacy ability. | Publish changes in Federal Register; mandatory public notice/comment required. |
| May 2, 2025 | Part 34 (Major System Acquisition) | FAR Council simplifies language, removing detailed procedural guidance. | Immediate implementation without APA compliance; no public input. | Creates ambiguity disadvantaging small firms by removing clarity. | Require public notice/comment with clear agency justification. |
| May 22, 2025 | Part 10 (Market Research) | FAR Council removes detailed market research requirements critical for triggering Rule of Two and set-asides. | Lacks legal justification, transparency; circumvents APA-required public review. | Significantly weakens small business access to set-asides by eliminating clear procedures. | Formal APA-compliant public notice/comment required. |
Why Does APA Compliance Matter?
The Administrative Procedure Act (APA), codified at 5 U.S.C. §§ 551–559, is federal law requiring transparent, accountable rulemaking—essential for protecting small businesses reliant on fair procurement rules. Simply put: APA compliance is legally required.
Take Action
Support transparent, accountable, and legally compliant federal procurement policies.