FAR Council Proposes Overhaul of 16 FAR Parts with Four Key Rules
The FAR Council proposes revising 16 FAR parts with four major rule changes.
Why it matters: Federal contractors and legal teams must prepare for updated regulations affecting contracting processes, data rights, and procurement methods.
- The FAR Council released proposed rules on September 18, 2026, revising 16 FAR parts and updating FAR Part 52 contract clauses.
- Four main rules focus on commercial acquisitions, contract types, data rights, and contractor responsibility.
- Part 8 would require agencies to use an OFPP-designated 'required use' contract or blanket purchase agreement if suitable vehicles exist.
- SBIR protections would change to a 20-year fixed term with government-purpose rights after expiration, replacing the prior extendable four-year term.
On September 18, 2026, the Federal Acquisition Regulatory (FAR) Council published proposed rules revising 16 FAR parts, including updates to contract clauses in FAR Part 52. These proposals aim to simplify federal procurement by aligning regulations with commercial practices and improving government contracting efficiency.
The proposals include four main FAR cases addressing commercial acquisitions, contract types, data rights, and contractor responsibility. One major change affects FAR Part 8, which would require federal agencies to use an Office of Federal Procurement Policy (OFPP) designated 'required use' contract or a blanket purchase agreement (BPA) when suitable contracting vehicles are available, streamlining purchases and reducing duplication.
FAR Part 12, governing commercial acquisitions, is also reorganized and simplified to better correspond with industry standards, making contracting faster and more user-centric.
The FAR Council proposes removing FAR subpart 27.4 and replacing it with two new subparts derived from the Defense FAR Supplement (DFARS): one tailored for other-than-commercial acquisitions, and another for commercial acquisitions. This update formally introduces government-purpose rights into the FAR, standardizing data rights protections. According to commentary from Nixon Peabody LLP, this alignment may reduce costs by consolidating data rights frameworks across agencies.
Small Business Innovation Research (SBIR) data protections would also be revised. The existing extendable four-year protection period would be replaced with a fixed 20-year non-extendable term. After 20 years, the government would acquire a government-purpose license, limiting government use rights compared to the current unlimited rights.
Additional updates include removing obsolete provisions such as preaward surveys and contractor team arrangements from FAR Part 9, as well as eliminating 33 nonstatutory clauses and outdated shipping terms from FAR Part 47. The FAR Council highlights a shift towards relying on contracting officer judgment and stewardship principles rather than detailed paperwork compliance.
If finalized, these changes will require legal and compliance teams to adjust contracts and advise government contractors within a significantly revised regulatory framework.
By the numbers:
- 16 FAR parts revised — scope of proposed changes released September 18, 2026
- 4 major FAR cases — focus areas: commercial acquisitions, contract types, data rights, contractor responsibility
- 20 years — new fixed SBIR data protection term replacing extendable 4-year period
Yes, but: These proposals are not final and remain open for public comment before potential adoption, so details could change.
What's next: Public comments on the proposed rules are expected in the coming months; implementation timelines will follow after final decisions.