The Federal Acquisition Regulatory (FAR) Council is undertaking a systematic approach to revising the Federal Acquisition Regulations (FARs). On July 24, 2025, revisions to FAR Part 35, Research and Development Contracting and FAR Part 36, Construction and Architect-Engineer Contracts, were issued.

The following are redlines showing the additions and deletions to FAR Part 35 and FAR Part 36.

FAR Part 35 – Research and Development Contracting

The FAR Council stated that its revisions to FAR Part 35 are to

streamline research and development contracting by removing outdated barriers, redundant content, and adding plain language improvements. This makes the federal R&D environment more attractive to innovative commercial firms.

The changes made include as follows:

• • Addition of new subparts to, according to the FAR Council, “create logical organization in alignment with the acquisition lifecycle, creating clear points of reference.” These new subparts are: 35.1, Presolicitation, 35.2, Evaluation and Award, and 35.3, Postaward.
  • Requirements found in section 35.005 Work Statement are moved to the FAR Companion Guide.
  • Recoupment moved to the FAR Companion Guide.
  • Section 35.002, General, was “streamlined.”
  • The following provisions were deleted:

FAR Part 36 – Construction and Architect-Engineer Contracts

The FAR Council describes its changes to FAR Part 36 as follows:

New subparts 36.1, Pre-Solicitation, 36.2, Evaluation and Award and 36.3, Postaward, respectively, create logical organization for all activities in alignment with the acquisition lifecycle creating clear points of reference. The scope of the part is simplified to define the part’s coverage to “construction, which includes dismantling, demolition or removal of improvements; and architect-engineer services.” Enhanced to ensure requirements are clear and aligned with best practices.

The changes made include:

• • Revised Subpart 36.101-2 to provide the streamlined “Procedures” for two-phased design-build selection, previously at subpart 36.303.
  • Revised Subpart 36.101-5 to clarify that consideration for liquidated damages must be evaluated by the contracting officer during acquisition planning.
  • Moved the requirement that the Government estimate of construction costs is to be prepared and furnished to the contracting officer from subpart 36.203 to subpart 36.101-6, and the timing was revised from “at the earliest practicable time” to the estimate must be given to the contracting officer “before receipt of proposals.”

The FAR Council retained:

• • The requirement that “agencies must require the use of Project Labor Agreements for Federal construction projects with a total estimated construction cost at or above $35 million unless an exception applies;” and
  • The requirement that “market research for construction contracts valued at or above $35 million must ensure that the market research procedures involve a current and proactive examination of the market conditions in the project area.”

The FAR Council removed the following:

• • The requirements to provide for a site inspection during the solicitation phase, previously at 36.210 and 36.523, and to conduct a preconstruction conference after award, previously at 36.212 at 36.522, were removed and the decision to conduct these activities are now at the discretion of the acquisition team.
  • A variety of definitions across 36.001 and 36.102 was removed, leaving only a single definition, “Firm,” at 36.001.
  • The “Applicability” section, previously found at 36.101, was removed.
  • The specific evaluation requirements for architect-engineer contracts at 36.602-1 and 36.603 were removed to provide “additional flexibility in evaluating offeror qualifications.”
  • FAR 36.201, which provided for evaluation of contract performance and preparing past performance evaluations for construction contracts was removed and the new subpart 36.3, Postaward, refers contracting officers to FAR part 42 for general contract administration functions.
  • FAR 36.204’s provision regarding disclosure of the magnitude of construction projects was removed.
  • The supplemental requirements for sealed bidding at 36.213 were removed and the FAR Council directed acquisition teams who want to utilize sealed bidding to review part 14.
  • The section titled, “Performance of Work by the Contractor,” formerly located at 36.501 and the implementing clause at 52.236-1 are removed. The FAR Council explained:

“This requirement, often referred to as the “12 percent rule,” mandated that prime contractors perform a specified minimum percentage of the total contract work with their own forces. This requirement is separate from the clause at 52.219-14, Limitations of Subcontracting.”

• • FAR 236-4 Physical Data was removed.
  • FAR 52.236-19 Organization and Direction of the Work was removed.
  • FAR 52.236-26 Preconstruction Conference was removed.
  • FAR 52.236-27 Site Visit (Construction) was removed.
  • FAR 52.236-28 Preparation of Proposals-Construction was removed.

This article summarizes aspects of the law. This article does not constitute legal advice. For legal advice for your situation, you should contact an attorney.