FAR overhaul: The challenges in tackling federal procurement’s 5,000-page beast

A major revamp of the Federal Acquisition Regulations is coming and those reforms will certainly touch every facet of doing business with the federal government.

Stephen Ehikian, acting administrator for the General Services Administration, said Monday that the agency is pushing to streamline the procurement process and reduce compliance burdens. GSA's goal is to increase efficiency and competition.

The process seeks to bring in more of he called “best-in-class” enterprises and a higher number of small businesses into the federal market.

GSA is working with the FAR Council and other stakeholders on changes to the acquisition regulations.

FAR regulations cover the entire procurement process that includes acquisition planning, contract methods and administration, source selection and award, and small business programs. The regulations also outline ways for agencies to introduce alternative procurement methods, as well as oversight and audit requirements for contractors.

A 100-page document floating around LinkedIn purports to outline a variety of changes to the FAR, but its authenticity remains verified. It is unlikely to be an official GSA document, but does offer a reminder of how complex and massive the FAR is.

The current version of the FAR is 2,000 pages before including agency supplements and rules specific for individual agencies. After adding in those, the FAR swells to over 5,000 pages.

It also has over 50 parts and under those are subparts, sections and clauses that govern how agencies buy goods and services.

Given the FAR's scale, there are plenty of targets for streamlining and reform. But the FAR will remain a complex document after any changes are made.

We have been told in multiple conversations around the ecosystem that the Trump administration wants to strip everything back to what is required by legislation, not executive orders and memorandums that have added to the regulations over the years.

But as this process moves forward, it is important to keep in mind the purpose of the FAR.

Part of the FAR's role is to promote competition, fairness and transparency in the acquisition process. But it is also there to deliver best-value products and services to agencies, plus maintain the public trust that government dollars are spent wisely.

The FAR also has been a mechanism for promoting economic and policy goals. This is especially true for small businesses, minority- and women-owned small businesses, and veteran-owned small businesses. The use of HUBzone businesses also is enshrined in the FAR.

When procurement and acquisition work well, there is no conflict among the different goals of competition, fairness, best-value, and social and economic development.

So far, it does not look like the Trump administration is going to take on the small business goals as it has with those for DEI (diversity, equity and inclusion). Congress sets small business goals, so changes would need approval from lawmakers.

Reform efforts will focus on regulations governing how agencies develop and manage contracts, including acquisition planning and conducting market research.

There also are standards for business systems and accounting rules that contractors must comply with. One frequent complaint across the industry focuses on how the government requires different accounting standards from the commercial world.