The FAR Council continues its systematic effort to modernize and streamline the Federal Acquisition Regulation (FAR). Following the initial release of revisions to FAR Parts 7, 24, and 44. On September 11, the Council finalized and released changes FAR Part 3 – Improper Business Practices and Personal Conflicts of Interest, FAR Part 17 – Special Contracting Methods, FAR Part 27 – Patents, Data, and Copyrights, and ‎FAR Part 45 – Government Property.

FAR Part 3 – Improper Business Practices and Personal Conflicts of Interest

• The September 2025 overhaul to FAR Part 3 primarily includes minor updates and minimal deletions.
• • Procurement Integrity Definitions (3.104-1): The new text clarifies when certain professional actions do not constitute substantial participation: “Generally, an official will not be considered to have participated personally and substantially in a procurement solely by participating in the following activities: … [t]he performance of general, Technical, engineering, or scientific effort having broad application not directly associated with a particular procurement….”
  • Solicitation and acceptance of gratuities (Section 3.101-2): The revisions attempt to strengthen the rules on gratuities: “No Government employee may solicit or accept, directly or indirectly, any gratuity, gift, favor, entertainment, loan, or anything of monetary value from anyone who: (a) has or is seeking to obtain Government business with the employee’s agency, (b) conducts activities that are regulated by the employee’s agency, or (c) has interests that may be substantially affected by the performance or nonperformance of the employee’s official duties.”
  • Updated disclosure requirements (Section 3.1003(2)): The revisions clarifies a contractor’s mandatory disclosure obligations, stating that “[a] contractor may be suspended or debarred for ‎knowingly failing to promptly disclose to the Government, in connection with a ‎Government contract … credible evidence of a violation of Federal criminal law ‎‎… or a violation of the Civil False Claims Act. Failure to timely disclose credible ‎evidence … remains grounds for suspension or debarment until 3 years after ‎final contract payment.”‎
  • The revisions update the mandatory procedures for preventing personal conflicts of interest (Section 3.1103), with the new language stating: “By use of the contract clause at 52.203-16 … require each contractor whose employees perform acquisition functions closely associated with inherently Government functions to … (1)(i) obtain and maintain from each covered employee a disclosure of interests … (2)(i) Prevent personal conflicts of interest, including not assigning or allowing a covered employee to perform any task under the contract for which the Contractor has identified a personal conflict of interest that cannot be satisfactorily prevented or reduced …. (2)(ii) prohibit use of non-public information for personal gain … (2)(iii) obtain a signed non-disclosure agreement from each covered employee.”

Notably, the revisions do not incorporate or adopt the proposed rules published on January 15^th that would implement the Preventing Organizational Conflicts of Interest in the Federal Acquisition Act. The FAR Council states that those proposed rules would be addressed in a different rule-making process.

FAR Part 17 – Special Contracting Methods

The September 2025 overhaul to FAR Part 17 mostly reorganizes information, combines related topics, and removes repeated information.

• • Section 17.000, Scope of Part, is retained and expanded to provide a more complete list of the special contracting methods covered within the part.
  • Subpart 17.3 remains Reserved.
  • Subpart 17.4, Leader Company Contracting, has been streamlined.
  • Subpart 17.5, Interagency Acquisitions, is updated with plain-language revisions and formatted to improve clarity.
  • The following subparts were reorganized to align with the acquisition lifecycle stages (Presolicitation, Evaluation, Award, and Postaward):
    • 17.1, Multiyear Contracting
    • 17.2, Options
    • 17.7, Management and Operating Contracts, and
    • 17.8, Reverse Auctions
  • The revisions clarified eligibility for multiyear contracts, including, for DoD, NASA, and Coast ‎Guard (17.103-1 Policy): “the head of the agency may enter into a multiyear contract … if the use ‎of such a contract will save significant costs … or will provide necessary ‎stability to the defense industrial base not otherwise achievable through annual ‎contracts” plus requirements for national security benefits and Secretary-level ‎certification for contracts valued at $500 million or more.‎
  • Option Exercise Documentation (17.202(b)(2)(ii)): For exercising contract options, the documentation now includes a required approval level: “This decision must be—(i) In writing; and (ii) Approved at least one level above the contracting officer.”
  • Content Moved to FAR Companion: Several subsections have been relocated for clarity and consolidation:
    • Content from previous section 17.105-2 about the objectives and benefits of multiyear contracting was moved to the FAR Companion.
    • Content from previous sections 17.203 and 17.204, reflecting best practices for options in solicitations and contracts, was moved to the FAR Companion.
    • Content from previous sections 17. 4, reflecting procedures and best practices on Leader Company contracting was moved to the FAR Companion.
    • Content from previous section 17.802(c) reflecting best practices for reverse auctions was moved to the FAR Companion.

FAR Part 27 – Patents, Data, and Copyrights

The September 2025 overhaul of FAR Part 27 focused on streamlining, improving clarity, and modernizing regulation language for patents, data, and copyrights in federal contracts. The overhaul retains key statutory requirements, while eliminating duplicative, unnecessary, or outdated provisions and reformatting provisions for plain language.

Major Content Revisions and Deletions

• • Elimination of Non-Statutory and Redundant Content: The overhaul “removes redundant or obsolete language … and preserves essential governmentwide acquisition standards.”
  • Policy and Objectives Section Streamlined: “The council has eliminated a section that provides unnecessary detail of the U.S. government’s policy and objectives for patent rights and title under contracts” (previously found in 27.302).
  • Subsection on Small Business/Nonprofit Status Removed: “A subsection addressing the status of a small business or nonprofit organization has been removed as the content is duplicative of FAR Part 19” (previously in 27.304-1(a)).
  • Clarified Structure and Organization: Provisions were reorganized to increase “ease of use and understanding” and to ensure clearer, simpler sentences and improved formatting.

Key Section-by-Section Highlights

• • 302 Policy: The FAR Council has eliminated a section that provides unnecessary detail of the U.S. government’s policy and objectives for patent rights and title under contracts.
  • 304 Procedures: A subsection addressing the status of a small business or nonprofit organization has been removed as the content is duplicative of FAR Part 19. (27.304-1(a))
  • ‎Subpart 27.4 – Rights in Data and Copyrights: Streamlined and reorganized. Plain language clauses clarify the scope and application of rights in data and copyrights, particularly for technical data, software, and commercial items. (27.4 et seq.)
  • 405 Other Data Rights Provisions‎‎: Provides explicit direction for special works, existing works, and commercial software, clarifying agency and contractor responsibilities.” (27.405 et seq.). Notably, the section now instructs that contracts “must ‎specifically address the Government’s rights…” and “agencies are authorized to specially negotiate” terms ‎(27.405-1)‎

FAR Part 45 – Government Property

The September 2025 overhaul of FAR Part 45 retained core provisions and clauses governing government property, but made several targeted deletions and minor plain language updates. Most substantive regulatory requirements remain unchanged; instead, non-statutory guidance and explanatory content have been moved to companion documents outside the FAR.

Key Section-by-Section Changes

• • Scope and Definitions: Core regulatory definitions and scope of FAR Part 45 are retained, including “This part prescribes policies and procedures for providing Government property to contractors; contractors’ management and use of Government property; and reporting, redistributing, and disposing of contractor inventory” (45.000).
  • Plain Language Updates: FAR part 45 has been retained with “minor updates made for plain language. No changes were made to provisions or clauses.”
  • Content Moved to FAR Companion: Several subsections have been relocated for clarity and consolidation:
    • Content from subsections 45.104 (b) and (d), Responsibility and liability for Government property, was moved to the FAR Companion.
    • Content from subsection 45.201 (d), solicitation instructions or property management, was moved to the FAR Companion.
    • Content from subsection 45.606 (b), Contractor scrap procedures, was moved to the FAR Companion.

Our team consults with clients to discuss how these revisions might affect their current contracts, pending proposals, and internal policies and procedures. We can assist in updating compliance programs, training key personnel, and navigating the new requirements.

The opinions expressed herein are solely those of the authors. This article does not constitute legal advice. For legal advice for your situation, you should contact an attorney.