The FAR Council is undertaking a systematic approach to revising the FARs. On September 11, 2025, it released its revisions to FAR Part 3, Improper Business Practices and Personal Conflicts of Interest, FAR Part 17, Special Contracting Methods, and FAR Part 45, Government Property.

Redlines showing the additions and deletions to each of these sections of the FAR:

• • PART 3
  • PART 17
  • PART 45

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

FAR Part 7 describes the policies and procedures for avoiding improper business practices and personal conflicts of interest and for dealing with their apparent or actual occurrence.

The FAR Council stated that FAR Part 3 “has been retained with minimal deletions and minor updates made for plain language and streamlining.”

Notably, the revisions to FAR Part 3 did not incorporate the proposed changes to organizational conflict of interest rules that are in the proposed rule published by the Department of Defense, GSA, and NASA on January 7, 2025. The FAR Council stated that those proposed changes “will be addressed in subsequent policy.”

We previously analyzed the proposed changes to organizational conflict of interest rules here. Broadly speaking, the proposed rule seeks to broaden the definition of OCI to encompass both direct and indirect conflicts that could compromise impartiality in contract performance. It requires contractors to proactively disclose any potential or actual conflicts at multiple stages and mandates robust mitigation measures—such as implementing firewalls, organizational separation, or divestiture—to prevent the misuse of sensitive information or undue influence on contract specifications. Federal agencies are charged with thoroughly reviewing these disclosures, documenting their assessments, and ensuring ongoing monitoring and enforcement throughout contract execution.

FAR Part 17, Special Contracting Methods

FAR Part 17 prescribes policies and procedures for the acquisition of supplies and services through special contracting methods, including (a) multiyear contracting; (b) options; (c) leader company contracting; (d) interagency acquisitions; (e) management and operating contracts; and (f) reverse auctions. The FAR Council describes its changes to FAR Part 17 as “organizing information in a way that’s easier to understand and use; combining related topics and removing repeated information; and making the language clearer through simpler sentences and formatting.”

Notably, the FAR Council deleted two provisions in FAR Part 17 that address small business. The FAR Council removed:

• • The provision that contracting officers, when developing the business case analysis for multi-agency contracts and governmentwide acquisition contracts to “[c]onsider strategies for the effective participation of small businesses during acquisition ‎planning (see 7.103(u));‎” and
  • With respect to the decision to exercise a contract option, the provision stating that the contracting officer “[m]ay consider the effect on small business.”

The FAR Council provided the following summary of its changes:

• • 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 17.4, Leader Company Contracting, has been significantly streamlined.
  • Subpart 17.5, Interagency Acquisitions, is updated with plain-language revisions and formatted to improve clarity.
  • The following subparts are reorganized to align with the acquisition lifecycle stages (Presolicitation, Evaluation, Award, and Postaward):
    • • 1, Multiyear Contracting
      • 2, Options
      • 7, Management and Operating Contracts, and
      • 8, Reverse Auctions
  • All clauses and provisions prescribed in this part are retained. The following provisions have been updated to reflect current cross-references:
    • • 217-4, Evaluation of Options Exercised at Time of Contract Award
      • 217-5, Evaluation of Options
      • Clauses 52.217-8, Option to Extend Services, and 52.217-9, Option to Extend Term of Contract, remain the same and must still be completed by the acquisition team.

The FAR Council also stated that the following provisions were moved to the FAR Companion and/or Category Buying Guide:

• • Content from previous section 17.105-2 about the objectives and benefits of multiyear contracting has been moved to the FAR Companion.
  • Content from previous sections 17.203 and 17.204, reflecting best practices for options in solicitations and contracts, has been moved to the FAR Companion.
  • Content from previous sections 17.4, reflecting procedures and best practices on Leader Company contracting, has been moved to the FAR Companion.
  • Content from previous section 17.802(c) reflecting best practices for reverse auctions has been moved to the FAR Companion.

The following sections were removed:

• • previous section 17.107, Options
  • previous section 17.205, Documentation
  • Criteria for identifying management and operating contracts, previously at section 17.604, Identifying management and operating contracts.

FAR Part 45, Government Property

FAR Part 45 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.

The FAR Council stated that FAR Part 45 “has been retained with minimal deletions and minor updates made for plain language. No changes were made to provisions or clauses.”

The FAR Council summarized the deletions as follows:

• • 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.

Notably, the FAR Council stated that FAR Part 45 should be viewed in conjunction with FAR Part 8, and that:

[FAR Part 8] provides for increased contractor access to government supply source.

Previously, contractor use of Government supply sources under FAR Part 38 was largely restricted to cost-reimbursement contracts or of such type.

Agencies may authorize contractors to use Government supply sources (including non-mandatory sources like FSS) to obtain necessary supplies or services for a Government contract when it is deemed in the Government’s interest.

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.