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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 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.
Small subcontractors in defense contracting face unique challenges in negotiating flow-down clauses. Understanding mandatory versus negotiable FAR clauses is essential for better contract terms and mitigating risk. Legal guidance is advisable to navigate these complexities.
The GAO's latest report underscores persistent barriers to cloud adoption due to outdated procurement regulations. It calls for Congress to amend the FAR, enabling federal agencies to better utilize cloud services and achieve significant cost savings.