The FAR Council is undertaking a systematic approach to revising the FARs. On August 15, 2025, it released its revisions to FAR Part 7, Acquisition Planning, FAR Part 24, Protection of Privacy and Freedom of Information, and FAR Part 44, Subcontracting Policies and Procedures.
Redlines showing the additions and deletions to each of these sections of the FAR:
FAR Part 7 – Acquisition Planning
FAR Part 7 describes the procedures for acquisition planning and developing acquisition plans; determining whether to use commercial or Government resources to acquire supplies or services; deciding whether it is more economical to lease or to purchase equipment; and determining whether functions are inherently governmental.
The FAR Council stated that its revisions to FAR Part 7 are intended to “emphasize flexibility and move away from prescriptive checklists in favor of a dynamic planning process.”
Notably, the revised FAR Part 7:
now includes requirements previously found in FAR part 10 to ensure small business concerns are appropriately considered. Requirements for bundling, substantial bundling, and consolidation are unified to ensure common consideration of any potential negative impact on small business.
Specifically, the revised FAR Part 7 states that:
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- The planning team should include “all those who will be responsible for significant aspects of the acquisition, such as contracting, small business, fiscal, legal, technical personnel, and the combatant commander or chief of mission”; and
- agencies must “[c]oordinate the plan with the appropriate small business specialist from the agency Office of Small and Disadvantaged Business Utilization or the Office of Small Business Programs when the plan strategy involves consolidation or bundling (see 7.107)”
(emphasis added). When contracts are consolidated or bundled, the new FAR Part 7.107 requires the agency to:
“(1) Conduct market research;
(2) Identify any alternative contracting approaches that would involve a lesser degree of consolidation or bundling (e.g., separate smaller contracts or orders);
(3) Coordinate with the agency’s Office of Small Disadvantaged Business Utilization or the Office of Small Business Programs;
(4) Identify any negative impact by the acquisition strategy on contracting with small business concerns;
(5) Take steps to include small business concerns in the acquisition strategy; and
(6) When required in paragraph (b) of this section, make a written determination that the consolidation (15 U.S.C. 657q) or bundling (15 U.S.C. 644(e)) of contract requirements is necessary and justified.”
(emphasis added).
Written justification for consolidation or bundling are required for:
(1) Consolidation requirements above $2 million (15 U.S.C. 657q);
(2) Bundling requirements; and
(3) Substantial bundling requirements with a cumulative estimated dollar value (including options) of:
(i) $8 million or more for the Department of Defense.
(ii) $6 million or more for the National Aeronautics and Space Administration, the General Services Administration, and the Department of Energy.
(iii) $2.5 million or more for all other agencies.
(iv) These thresholds apply to multiple-award contracts, task orders, or delivery orders issued against a GSA Schedule contract, or task orders or delivery orders issued against a task-order or delivery-order contract awarded by another agency.
The written justification must address the impacts on small businesses, including “[a]n assessment of the specific barriers to participation by small business concerns as contractors that result from substantial bundling” and describing “[a]ctions designed to maximize small business participation as contractors, including provisions that encourage small business teaming.”
The revised FAR Part 7 includes a requirement that the agency notify “each small business performing a contract that it intends to consolidate or bundle the requirement at least 30 days before issuing the solicitation for the bundled requirement” and publish a public notice regarding the consolidation or bundling.
The revised FAR Part 7 also mandates that:
Agencies establish procedures for determining when a written or oral plan is needed and lists high-level outcomes that planning must promote:
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- Acquisition of commercial products or services
- Full and open competition
- Selection of an appropriate contract type
- Use of existing contracts
Notably, the FAR Council’s revisions also emphasize the use of oral acquisition plans, which are summarized in a memo to the file. The FAR Council provided the following example:
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- Contracting Officer received an urgent request for building repairs that were over the micro-purchase threshold.
- Contracting Officer discussed with the approving official the proposed acquisition plan, aided by a short checklist of topics to cover.
- In under 30 minutes, the acquisition plan was finalized. “What used to take days was done in less than an hour.”
- The Contracting Officer placed a summary into the file. Acquisition planning completed.
The FAR Council also linked to two examples of “streamlined” acquisition plan templates, one used by the DoD and one used by the Federal Railroad Administration. These templates may be of use to contractors who are tracking how federal agencies are developing and implementing their acquisition plans.
FAR Part 24, Protection of Privacy and Freedom of Information
FAR Part 24, Protection of Privacy and Freedom of Information prescribes policies and procedures that apply requirements of the Privacy Act of 1974 ( 5 U.S.C. 552a) (the Act) and OMB Circular No.A-130, December 12, 1985, to Government contracts and cites the Freedom of Information Act ( 5 U.S.C.552, as amended).
FAR Part 24 has been retained with minimal deletions and minor updates made for plain language. No changes were made to provisions or clauses.
The FAR Council also stated that the forthcoming FAR Companion will contain “[b]est practices for processing FOIA requests for awarded contracts.”
FAR Part 44, Subcontracting Policies and Procedures
FAR Part 44, Subcontracting Policies and Procedures prescribes policies and procedures for consent to subcontracts or advance notification of subcontracts, and for review and approval of contractors’ purchasing systems.
Significant revisions were made to FAR Part 44’s structure. It is now organized by the different parts of the acquisition lifecycle:
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- Subpart 44.1 – Reserved
- Subpart 44.2 – Evaluation and Award
- Subpart 44.3 – Postaward
- Subpart 44.4 – Subcontracts for Commercial Products and Commercial Services
Subpart 44.2 was revised to consolidate policies related to subcontract consent, advance notification, and the contracting officer’s evaluation process. A new “shorter, higher-level list of four situations that necessitate ‘careful and thorough review and consideration’ of the request to subcontract now applies, in place of the prior 13-point checklist.
FAR 44.303 Extent of review, 44.306 Disclosure of approval status, and 44.307 Reports, which address Contractor Purchasing System Reviews (CPSRs), were “significantly streamlined and best practices moved to the FAR Companion.”
The opinions expressed herein are solely those of the author. This article does not constitute legal advice. For legal advice for your situation, you should contact an attorney.
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