Acquisition Policy

A proposed FAR rule published September 18, 2026, would revise Parts 16, 17, and 35 and favor fixed-price contracts, with written justification and agency-head approval potentially required for alternatives. Contractors should assess labor tracking, timekeeping, overhead allocation, and cost-review practices before pursuing fixed-price work; the proposal is not yet a finalized requirement.

The Department of Defense has directed a 12-month review of adopting commercial AI and cloud services on classified networks, alongside potential changes to digital engineering and software delivery organizations. The study will examine security authorizations, acquisition rules, vendor access, and barriers for small and nontraditional contractors, but creates no immediate solicitation or award.

The Federal Acquisition Regulatory Council released FAR Companion Version 3.0 on October 30, 2026, under the Revolutionary FAR Overhaul. New and clarified guidance covers industry engagement, performance-based and modular contracting, commercial and construction acquisitions, and closeout—giving contractors and acquisition teams a timely reference for reviewing capture and delivery practices against rewritten FAR parts and agency deviations.

Congressional disagreement over defense spending and proposed acquisition provisions raises the risk of delay or failure for the FY2026 National Defense Authorization Act. Contractors should track negotiations over the competing topline figures, potential restrictions on buybacks and dividends, and expanded troop right-to-repair provisions ahead of lawmakers’ Thanksgiving target.

Congress has yet to resolve the FY2027 National Defense Authorization Act or full-year Pentagon funding as several authorization and appropriations deadlines converge in December. The administration’s roughly $1.5 trillion defense proposal remains unenacted, leaving contractors exposed to funding delays and potential changes affecting acquisition rules, data requirements, and supply-chain provisions.

GAO found 22 of 24 CFO Act agencies rely primarily on historical procurement and contract data for cloud-purchasing decisions, despite imprecision from single product or service codes. Agencies also cited cost-control struggles, conflicting guidance, and outdated acquisition rules—signaling demand for contractor support in cloud-spend visibility and acquisition modernization.

Sens. Elizabeth Warren and Chuck Grassley are asking Deputy Defense Secretary Steve Feinberg how DoD would require detailed cost and pricing data on contracts below $10 million and limit negotiations with firms that refuse. The inquiry raises a potential shift in defense pricing and negotiation practices, but does not establish a current requirement or implementation timeline.