# Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 1, 2, 4, 33, 39, 40, and 53 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A2026-12559 ## Record - **Collection:** Federal Register - **Document type:** Proposed Rule - **Published:** June 23, 2026 - **Citation:** 91 FR 37550 ## Text OFFICE OF MANAGEMENT AND BUDGET Office of Federal Procurement Policy DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 1, 2, 4, 33, 39, 40, 52, and 53 [FAR Case 2026-001, Docket No. FAR-2026-0001, Sequence No. 1] RIN 9000-AO86 Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 1, 2, 4, 33, 39, 40, and 53 AGENCY: Office of Federal Procurement Policy (OFPP), Office of Management and Budget (OMB); Department of Defense (DoD); General Services Administration (GSA); and National Aeronautics and Space Administration (NASA). ACTION: Proposed rule. SUMMARY: OFPP, DoD, GSA, and NASA (collectively referred to as the Federal Acquisition Regulatory Council or FAR Council) are proposing to amend the Federal Acquisition Regulation (FAR) to implement Executive Order (E.O.) 14275, Restoring Common Sense to Federal Procurement. The E.O. directs the elimination of excessive acquisition regulations to stop the inefficient use of American taxpayer dollars. The FAR Council is issuing twelve proposed rules that collectively will streamline the FAR in its entirety. This rule proposes revisions to FAR parts 1, 2, 4, 33, 39, 40, 52, and 53. DATES: Interested parties should submit written comments to the Regulatory Secretariat Division at the address shown below on or before July 23, 2026, to be considered in the formation of the final rule. ADDRESSES: Submit comments in response to FAR Case 2026-001 to the Federal eRulemaking portal at https://www.regulations.gov. Follow the instructions for sending comments. Instructions: Please submit comments only and cite “FAR Case 2026-001” in all correspondence related to this case. Include your name, company name (if any), and “FAR Case 2026-001” on any attached document. Comments received generally will be posted without change to https://www.regulations.gov, including any personal and/or business confidential information provided. Public comments may be submitted as an individual, as an organization, or anonymously (see frequently asked questions at https://www.regulations.gov/faq ). To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission to verify posting. Docket: For access to the docket to read background documents or comments received, go to https://www.regulations.gov/FAR-2026-001. FOR FURTHER INFORMATION CONTACT: For clarification of content, contact FARpolicy@gsa.gov or call 202-969-4075 and cite “FAR Case 2026-001.” For information pertaining to status, publication schedules, or alternate instructions for submitting comments if https://www.regulations.gov cannot be used, contact the Regulatory Secretariat Division at 202-501-4755 or GSARegSec@gsa.gov. Please cite “FAR Case 2026-001.” SUPPLEMENTARY INFORMATION: I. Background E.O. 14275, Restoring Common Sense to Federal Procurement (April 15, 2025), resets the foundation for Federal buying by requiring the FAR Council to produce a streamlined FAR that is simpler, clearer, and structured for speed. According to the E.O., the FAR has evolved from its original purpose ( i.e., to establish uniform procedures across executive departments and agencies), into an excessive and overcomplicated regulatory framework and bureaucracy. While meant to “deliver, on a timely basis, the best value product or service to the customer, while maintaining the public's trust and fulfilling public policy objectives,” the FAR has become an expensive barrier to achieving those objectives. As a result, the E.O. directed the FAR Council and OMB to create an agile, effective, and efficient regulation that contains only provisions required by statute or essential to sound procurement. To implement E.O. 14275, OMB issued Memorandum M-25-26, Overhauling the Federal Acquisition Regulation, which announced the “Revolutionary FAR Overhaul” (RFO) and created a roadmap for producing simpler regulations aligned to statute, rewritten in plain language, and including nonstatutory requirements that are necessary to conducting a sound procurement. The memorandum described a new streamlined vision for the FAR, to be maintained alongside nonregulatory governmentwide guidance to provide a common-sense authoritative foundation for nimble response and delivery of mission capability. This new vision represents a paradigm shift where over-engineered regulations designed for paperwork and compliance are replaced with streamlined regulations focused on core stewardship principles and nonregulatory guidance that will be used in concert with the streamlined FAR focused on proven buying strategies, critical thinking, market awareness (including to expand awareness of goods, products, and materials offered in the United States), and risk literacy to enhance workforce problem-solving. The significant reduction of unnecessary mandates is intended to clarify and reinforce the contracting officer's discretion to determine the best way to apply policies and practices. The newly established, nonregulatory guidance, which has been inspired by acquisition innovation advocates, category managers, other experienced practitioners, and many years of feedback from the contractor community—is expected to facilitate contracting officers' use of their discretion more efficiently and effectively to make smarter buying decisions. OMB Memorandum M-25-26 also directed the FAR Council to complete the regulatory overhaul in two phases, each with robust public input. The FAR Council conducted its phase one effort in fiscal year 2025 by issuing model class deviations to replace each part in the FAR until such time as formal rulemaking occurred. This proposed rule is one of a series that constitute the FAR Council's phase two effort to obtain public comment through formal rulemaking. II. Discussion and Analysis A summary of proposed changes to existing parts 1, 2, 4, 33, 39, 40, 52 and 53 are as follows: A. General 1. General RFO updates. This proposed rule generally reorganizes the FAR parts into phases of acquisition and simplifies the text into plain language, where possible. The plain language efforts include changes to active voice, edits to improve readability, and reorganization to present information more logically. None of the plain language edits are intended to change existing FAR requirements. The rewriting of the entire FAR also required edits to harmonize the changes being proposed such as updating the cross- references. This aligns with the Federal plain language guidelines as directed by the Plain Writing Act of 2010 (5 U.S.C. 301 note). 2. Standardization of prescriptions. This rule proposes revisions to standardize prescriptions for provisions and clauses. These changes are intended to provide better clarity around the applicability of provisions and clauses such as whether they apply to commercial products and services. 3. Use of “must” instead of “shall”. Additional revisions are being proposed throughout the FAR text and FAR provisions and clauses to replace the use of the term “shall” with “must” or “will,” as appropriate, to impose requirements. 4. Non-statutory requirements. Section 4 of the E.O. required amendments to the FAR to ensure it contains only provisions that are required by statute or that are otherwise necessary to support simplicity and usability, strengthen the efficacy of the procurement system, or protect economic or national security. The FAR Council reviewed all non-statutory requirements to determine if they are still relevant and essential to sound procurement in today's contracting environment based on the criteria from section 4 of the E.O. The proposed rule retains non-statutory requirements that further one or more of the elements of sound procurements, including those requirements that serve as guardrails to protecting taxpayer interests and promote taxpayer confidence in the procurement system. Non-statutory requirements that were beneficial but not essential were retained in the non-regulatory guidance documents. Other non-statutory requirements that did not meet these standards were removed. The Council considered the extent to which regulation is the most efficient means for capturing the benefit of the policy. For example, most “how to” requirements were found to be more appropriately suited for non-regulatory coverage which better enables a contracting officer to use discretion in determining the application of a strategy to a given situation and limits the risk of overapplication, which can create wasteful burden on the contracting parties. As part of the RFO, the FAR Council has created a number of non-regulatory resources, including the FAR Companion, which provides insight from experienced practitioners across the government on using more streamlined practices and processes. The migration of significant coverage to non-regulatory guidance is intended to ensure that the benefits of the policy are not outweighed by the compliance burden of a more rigidly written regulation that is prone to application in an overly broad manner. This approach was explained to the public in a set of “frequently asked questions” that were posted on the Revolutionary FAR Overhaul homepage shortly after the initiative was launched. B. Summary of Changes to FAR Part 1 1. Guiding principles Proposed revisions to the guiding principles in FAR 1.102 prioritize a “mission first” approach, positioning it as the paramount principle of the Federal Acquisition Regulations System. This ensures that all acquisition activities are directly aligned with achieving the agency's overarching objectives and serving the public interest. The proposed changes also elevate the importance of fiscal responsibility by prioritizing the best use of taxpayer dollars, which includes price preferences and incentives for domestically sourced goods and services. This principle underscores a commitment to “Buy American” laws, efficiency, cost-effectiveness, and accountability in all spending. Concurrently, the proposed changes recognize that timely acquisition and delivery are often essential for mission success. The guiding principles retain a strong emphasis on satisfying the customer, ensuring that the needs and expectations of the end-users are met with high-quality products and services. It continues to encourage the maximization of commercial products and commercial services. It also continues to promote competition, recognizing it as a vital mechanism for driving innovation, achieving better value, while prioritizing participation of domestic suppliers to foster a resilient and competitive American industrial base. Finally, it encourages innovation, urging agencies to explore and adopt new technologies, processes, and approaches that can lead to more efficient, effective, and transformative outcomes in government contracting. 2. Forms i. Relocation of FAR part 53, Forms. This rule proposes to relocate all information pertaining to forms from its current placement in FAR part 53, Forms to FAR part 1, Federal Acquisition Regulations System, specifically to the new proposed FAR subpart 1.6, Forms. This strategic move is designed to further enhance the consolidation of related information, by creating a more deliberate, logical, and user-friendly framework that fosters greater efficiency. ii. Summary of changes to forms. This proposed rule directs the acquisition community to a new centralized website (see https://acquisition.gov/FARforms ) as the authoritative repository for all acquisition related forms. As a result, to update the list of forms, the FAR no longer needs to be amended through the formal rulemaking process. This reduces the administrative burden on the FAR Council and increases the Government's ability to quickly keep the list of forms up-to-date. The “Forms List” referenced in FAR 1.602(b) now performs the prescriptive function previously handled throughout FAR subparts 53.2 and 53.3, shifting the FAR's role from a static, self-contained text to a dynamic system that points to live, authoritative resources. The proposed change simplifies user access to the forms and forms-related information. The notice and comment process for substantive changes to forms prescribed by the FAR remains unchanged. 3. Federal Acquisition Regulatory Council (FAR Council) This rule proposes to update the FAR Council consistent with 41 U.S.C. chapter 13, to add the Administrator for Federal Procurement Policy. 4. Regulatory Sunset Consistent with section 6 of E.O. 14275, this rule proposes to add a new regulatory sunset requirement to the FAR. A regulatory sunset establishes a process to review sections, provisions and clauses in the FAR, and identify those policies that are no longer required or are outdated and can be removed from regulation through rulemaking. This policy serves as a built-in mechanism to prevent the accumulation of outdated or unnecessary regulations and to encourage regular review of the regulatory framework. To facilitate the implementation of the regulatory sunset, the FAR Council anticipates standardizing this process by issuing a future proposed rule at regular timed increments requesting public input on policies that should be reviewed and considered for sunset. This process aims to ensure public input helps drive the determination of what should be sunset. Sections, provisions and clauses do not expire until removed from the Code of Federal Regulations through rulemaking unless an expiration date is otherwise noted inside a clause. The FAR Council may indicate through rulemaking the Government's intent not to enforce a clause after a stated date. (see FAR 1.109(b)). 5. Class Deviations From the FAR This proposed rule revises the definition of individual deviation to correct an ambiguity and to make it clear that a solicitation with multiple awards needs a class deviation and not an individual deviation. Additional updates are being proposed to streamline the internal Government process where agencies request and receive approval for deviations from the FAR. 6. Specific Streamlining Changes This rule proposes to make several streamlining changes to FAR part 1. While the requirements for OMB approval of information collections and recordkeeping requirements remain, to enhance efficiency and accessibility, the table listing OMB approved information collections by applicable FAR part is now available at https://www.acquisition.gov/FAR-PRA (see FAR 1.105). Similarly streamlined is the relocation of the table listing the renaming of public laws as a result of the positive law codification of Titles 40 and 41 of the United States Code at FAR 1.110, which is now available at https://www.acquisition.gov/renamingpubliclaws. This rule proposes to remove internal operating procedures related to the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council and relocate it on www.acquisition.gov, where similar information is already shared. This rule proposes to consolidate disparate policies related to the contracting officer's representative (COR) into FAR 1.404, Contracting officer's representative. This consolidation helps to more clearly identify requirements for the designation of the COR, when a COR must be designated, the qualifications required to be a COR, and COR responsibilities. 7. The Removal of Acquisition 360 Voluntary Survey Provision This rule proposes to reduce a substantial amount of nonstatutory text in FAR part 1 including the removal of FAR provision 52.201-1, Acquisition 360: Voluntary Survey. The requirement to implement this survey is based on OFPP Memorandum Acquisition 360—Improving the Acquisition Process through Timely Feedback from External and Internal Stakeholders, dated March 18, 2015. The voluntary use of the survey has been relocated to the FAR companion guide. 8. Relocation of Statutory Text This rule proposes to relocate FAR 1.102-2(a)(4) to paragraph (c) of FAR 7.201, Market research requirements, because the requirements address communications with industry. The text being relocated is based on requirements from Section 887 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016 (Pub. L. 114-92). 9. Retention of Policy and Procedures for Sound Procurement This rule proposes to maintain some policy that is nonstatutory because the policy is necessary for maintaining, publishing, or providing direction for the operation of the FAR system. This includes policy for the publication and code arrangement proposed to be moved from FAR 1.105-1 to FAR 1.104, which provides instructions on where the FAR is published in the CFR, how the FAR is numbered and who is responsible for publishing the FAR. Additionally, FAR conventions are proposed to be moved from FAR 1.108 to FAR 1.107. This section consolidates policies from FAR part 1 that address the usage of definitions, the ability to delegate authority within the FAR, specific dollar thresholds, applying FAR changes to solicitations and contracts, how statutes, executive orders, and other policies are cited in the FAR, and clarifies who the FAR is directing to take action. This rule also proposes to consolidate and maintain other policies and procedures for— (1) Authorizing deviations from the FAR as proposed at FAR subpart 1.3, (2) Authority and responsibilities of the contracting officer as proposed at FAR 1.402; (3) Designating and responsibilities of the COR as proposed at FAR 1.404; (4) Ratification of unauthorized commitments as proposed at FAR 1.405; and (5) Determination and findings proposed at FAR subpart 1.5. C. Summary of Changes to FAR Part 2 1. Deletions, Revisions, Additions and Relocation of Terms and Definitions i. Deletion of Terms and Definitions This rule proposes removing several words and terms from FAR 2.101 that are either no longer expected to be referenced in the FAR or are now defined elsewhere. The words or terms being proposed for deletion include: • Energy efficient standby power devices • Environmentally preferable • Federally controlled information system • F.o.b. . ..(for other types of F.o.b., see 47.303) • Projected average loss • Registered in the System for Award Management (SAM) • Shall • Single, Governmentwide point of entry • Sustainable acquisition • Sustainable products and services • Virgin material • Waste reduction ii. Revisions to Existing Definitions This rule proposes to revise the meaning of words and terms used in FAR 2.101. These revisions are a result of changes being made to the FAR in this revolutionary FAR overhaul (RFO) rule, FAR case 2026-001, or in another RFO rule FAR case. Discussion related to the changes to these terms can be found in the applicable RFO rule FAR case. The proposed rule revises the following words or terms. • Commercial computer software • Commercial product • Commercial service • Commercially available off-the-shelf (COTS) item • Computer software • Governmentwide point of entry (GPE) • Major system • Micro-purchase • Must • Offer • Offeror • Reverse auction • Service-disabled veteran-owned small business (SDVOSB) concern eligible under the SDVOSB Program • Simplified acquisition procedures • System for Award Management (SAM) • Technical data iii. Incorporation of New Terms and Definitions This rule proposes certain new words or terms along with their meaning to be added to FAR 2.101. These changes are a result of changes being made to the FAR in this RFO rule FAR case 2026-001, or in another RFO rule FAR case. The words or terms and their meanings are being added to FAR 2.101 because they will be used in more than one FAR part. The following words or terms are being added in FAR part 2.101: • Controlled unclassified information (CUI) • Federal information system (FIS) • Information system • SAM Contract Awards Management iv. Relocation of Terms and Definitions This rule proposes certain words or terms along with their meaning to be moved from one FAR part to another FAR part. This change aligns with FAR drafting convention which provides that if a term is used in more than one FAR part it should be defined in FAR subpart 2.101, see also FAR 1.107(a). If a word or term is used only once then it resides in the applicable FAR part, subpart or section where it is used. The following is a list of words and terms that are being proposed to be moved to a new location within the FAR. Term FAR Part location Proposed new FAR part location Activity Address Code FAR 2.101 FAR 4.001. Design-to-cost FAR 2.101 FAR 7.101. Designated operational area FAR 2.101 FAR 25.601-2. Determination and findings FAR 1.701 FAR 2.101. Disaster Response Registry FAR 2.101 FAR 26.101. Energy-efficient product FAR 2.101 FAR 23.101. Energy savings performance contract FAR 2.101 FAR 23.2. Governmentwide commercial purchase card FAR 13.001 FAR 2.101. Historically black college or university FAR 2.101 FAR 26.401. Make-or-buy program FAR 2.101 FAR 15.104. Minority Institution FAR 2.101 FAR 26.401. Overtime premium FAR 2.101 FAR 22.101. Pollution prevention FAR 2.101 FAR 23.401. Qualification requirement FAR 2.101 FAR 9.201. Qualified products list (QPL) FAR 2.101 FAR 9.201. State and local taxes FAR 2.101 FAR 29.301. Supporting a diplomatic or consular mission FAR 2.101 FAR 25.601-2. Value engineering FAR 2.101 FAR 42.1401. Value engineering change proposal (VECP) FAR 2.101 FAR 42.1401. 2. Other Updates to Definitions i. Proposed changes to FAR part 2 include conforming changes to align with changes made in individual FAR parts including updating FAR citations used within a definition and to add an acronym to a term, if applicable. Additional changes to revise, add, remove or relocate definitions may be necessary to make conforming changes based on changes to other RFO rules. ii. This rule proposes to change the meaning of the acronym “MAC” from “multi-agency contract” to mean “multiple-award contract”. This change aligns with the common usage of the acronym within the procurement community. 3. Acronym List This rule proposes to add a new subpart 2.102, Acronyms, and abbreviations. The list of acronyms and abbreviations will be located at https://www.acquisition.gov/far-acronyms. This resource will enhance readability and establish a centralized repository for identifying acronyms and abbreviations used within the FAR. Acronyms and abbreviations will continue to be established once in each FAR part and in provisions and clauses. 4. Threshold Adjustment This rule proposes to adjust the threshold for defining a “major system”. Section 1804 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2026 (Pub. L. 119-60) changes the Title 10 thresholds for “major system”. The NDAA language addresses threshold changes for both civilian agencies and DoD. However, the NDAA does not appear to make the same changes to Title 41. Consequently, the statutory thresholds described in 10 U.S.C. 3041 and 41 U.S.C. 109 are different. This rule proposes to incorporate the thresholds as described in section 1804 of the NDAA for both civilian agencies and DoD because of likely congressional intent to rely on Title 10 for the applicable thresholds. D. Summary of Changes to FAR Part 4 1. Relocation of Requirements to FAR Part 40 This rule proposes to relocate security requirements, prohibitions and exclusions and their related provisions and clauses from FAR part 4 to FAR part 40. For more details, refer to paragraph G of this Discussion and Analysis section and the table under paragraph 4.e of section VII. of this preamble. 2. Retained Part 4 Coverage The guidance affecting the standardization of acquisition data was retained as essential to sound procurement. As part of its ongoing systems modernization effort, GSA has retired FPDS.gov and transitioned to SAM.gov. All contract award data that was previously available in FPDS.gov is now available in SAM Contract Awards Management. Material regarding contents of contract files and other internal Government procedures were relocated to the FAR Companion or removed to allow agencies maximum flexibility to use technology and other tools as they see fit. 3. Solicitation Provisions and Contract Clauses There are no proposed changes to the provision at FAR 52.204-5, Women-Owned Business (Other Than Small Business), and the clause at FAR 52.204-19, Incorporation by Reference of Representations and Certifications. A minor change is proposed to the clause at FAR 52.204-9, Personal Identity Verification of Contractor Personnel, to standardize the subcontract paragraph. Proposed changes to the clauses at FAR 52.204-10, Reporting Executive Compensation; 52.204-14, Service Contract Reporting Requirements; and 52.204-15, Service Contract Reporting Requirements for Indefinite-Delivery Contracts, exclude applicability to contracts for commercial acquisitions. Proposed changes to FAR part 4 include streamlining the registration process in SAM by only having entity level representations and certifications in SAM. Representations and certifications that are procurement-specific ( e.g., the answer to the representation or certification might be different for each procurement of different products or services, rather than being “entity-level” such as a question about the offeror's status) or completed by submission of an offer will be removed from SAM and used in solicitations as prescribed in the FAR. Accordingly, the provision at FAR 52.204-8, Annual Representations and Certifications, will be removed. The FAR Council specifically invites feedback on potential impacts and changes in burden resulting from this substantial change in business process. The proposed changes to FAR part 4 contemplate two clear paths for collecting information from entities interested in obtaining Government contracts. If SAM registration is required, the revised solicitation provision at FAR 52.204-7, proposed to be titled “System for Award Management-Registration,” and the revised contract clause at FAR 52.204-13, System for Award Management-Maintenance, consolidate entity level information (already being collected in SAM) from five provisions and its required maintenance from 2 clauses, respectively. If SAM registration is not required, the new solicitation provision at FAR 52.204-XX, Offeror Identification, and the new contract clause at FAR 52.204-YY, Contractor Identification, consolidate entity level information from five provisions and its required maintenance from 2 clauses, respectively. This rule proposes to remove the FAR part 4 provisions and clauses described in the following table: FAR provision/clause Rationale for proposed removal 52.204-1, Approval of Contract Obsolete content. 52.204-3, Taxpayer Identification Consolidated under FAR 52.204-7(b)(2) or 52.204-XX(c). 52.204-6, Unique Entity Identifier Consolidated under FAR 52.204-7(b)(1) or 52.204-XX(b). 52.204-8, Annual Representations and Certifications Only entity level representations and certifications will remain in SAM, see FAR 4.208(c)(1)(ii) or 52.204-7(c). 52.204-12, Unique Entity Identifier Maintenance Consolidated under FAR 52.204-13(e) or 52.204-YY(b). 52.204-16, Commercial and Government Entity Code Reporting Consolidated under FAR 52.204-7(b)(3) or 52.204-XX(d)(1). 52.204-17, Ownership or Control of Offeror Consolidated under FAR 52.204-7(b)(3) or 52.204-XX(d)(2). 52.204-18, Commercial and Government Entity Code Maintenance Consolidated under FAR 52.204-13(f) or 52.204-YY(c). 52.204-20, Predecessor of Offeror Consolidated under FAR 52.204-7(b)(3) or 52.204-XX(d)(2). 52.204-22, Alternative Line Item Proposal Obsolete content. E. Summary of Changes to FAR Part 33 1. Purpose Statement This rule proposes to add FAR 33.100, Purpose of the bid protest system. The purpose statement sets forth objectives and expectations for the bid protest system. The primary goals of the bid protest process are to ensure efficient resolution of protests, minimize disruption to contract award, correct procurement errors quickly, and safeguard the rights of interested parties to an independent review of the alleged violations. The process is also intended to deter abuse and promote integrity in the FAR system. The protest process is not meant to serve as an alternate method for offerors to obtain post-award explanations, or debriefings, which can be addressed through other established procedures in the FAR ( e.g., FAR part 15). 2. Agency Protest Changes This rule proposes to require contracting officers to report protests to the head of the contracting activity, see FAR 33.104-4(a)(4)(ii). This language was added as a step towards increasing confidence in agency protests, increasing the ability to capture data at the agency level on protests filed with contracting officers, and for agency management to respond to procurement issues raised in protests. For protesters that elect an independent review by an official at a level above the contracting officer, this rule proposes to allow the disclosure of a redacted copy of the agency's final technical evaluation of the protester's proposal and a redacted copy of the source selection decision, see FAR 33.104-4(a)(5)(ii)(B). The disclosure of this information is available for any type of procurement ( e.g., FAR part 8, 12, 15). Additionally, this rule proposes to allow the protester to raise additional protest grounds, within a reasonable time set by the independent review official. These changes are intended to provide fuller disclosure, to build confidence in agency protests, and resolve more protests at the agency level (see FAR 33.104-4(a)(5)(ii)(C)). 3. Government Accountability Office Protests This rule proposes to significantly streamline the FAR to remove regulatory text that repeats or summarizes Government Accountability Office (GAO) protest regulations, and instead points the contracting officer to the applicable GAO regulations at 4 CFR part 21. These changes make this FAR part more concise and easier to navigate for contracting officers while minimizing the risk of discrepancies between the different regulations and reducing the need for additional rulemaking. 4. Changes to FAR 52.233-1, Disputes This rule contemplates revising FAR 52.233-1, Disputes, by removing paragraph (i) and replacing it with paragraph (i) in Alternate I. It is believed that the language in paragraph (i) was based on the state of law as it existed prior to the enactment of the Contract Disputes Act, when agencies could only require performance to continue if the claim at issue was arising under the contract. After the enactment of the Contract Disputes Act, agencies were then able to require performance to continue regardless of whether the claim arises under or related to the contract. Public comments are particularly invited on whether the removal of paragraph (i) and replacement of paragraph (i) in Alternate I would have any unintended consequences. F. Summary of Changes to FAR Part 39 1. Deletion of FAR 39.105, Privacy, and 52.239-1, Privacy or Security Safeguards This rule proposes to remove the requirements at FAR 39.105, Privacy and FAR clause 52.239-1, Privacy or security safeguards since the requirements are inconsistently used and are no longer needed to safeguard privacy or security. The FAR contains other security controls that restrict the publication or disclosure regarding the details of any safeguards that are Federal contract information (see FAR 52.240-5, Covered Federal Information). Other controls exist that restrict disclosure of certain information and provide safeguards for Federal information systems ( e.g., a system security plan is protected from disclosure under National Institute of Standards and Technology (NIST) control PM-1: Information Security Program Plan, and a supply chain risk management plan is protected from disclosure under NIST control SR-2: Supply Chain Risk Management Plan). Further, FAR 52.239-1 does not provide sufficient specificity regarding what Government access would be allowed, under what conditions, and how such information would be protected. Similarly, there is insufficient specificity regarding the scope and procedures for both the Government and contractor to share new or unanticipated threats or hazards. 2. Information and Communication Technology This rule proposes to amend the title of FAR part 39 and the text of FAR 39.001, Applicability, to cover information and communication technology (ICT). The purpose of this change is to establish the scope of this FAR part which will set the framework for future rulemaking that will address emerging technologies. Information technology is not broad enough to cover areas that would be included within part 39 including: operational technology, emerging technology, and information systems. 3. NICE Workforce Framework for Cybersecurity (NICE Framework) This rule proposes to consolidate FAR case 2019-014, Strengthening America's Cybersecurity Workforce which was published as a proposed rule at 90 FR 297 on January 3, 2025, into this FAR case. Eight respondents submitted comments on the proposed rule. Several respondents voiced support for standardizing cybersecurity workforce requirements across the Federal Government as it provides consistent standards for contractors and strengthens the cybersecurity workforce. Other comments supported defining the term “cybersecurity” and noted the clarity that this definition provides. One respondent noted that the proposed updates to FAR 7.105 and FAR 12.202 were valuable but that these requirements may slow down the acquisition process. Similarly, the respondent noted that requiring agency documents to align with the NICE Framework ensures consistency but cautioned about the risk of updating too frequently would be burdensome on the workforce. This proposed rule does not incorporate changes related to FAR 7.105 and FAR 12.202. This proposed rule aligns with the streamlining goals of the RFO and all revisions are proposed to be implemented in FAR part 39. 4. Position, Navigation, and Timing Services This rule proposes to consolidate FAR Case 2024-005, Positioning, Navigation, and Timing Services to implement a policy for acquisition planners to consult the Federal Positioning, Navigation and Timing Services Acquisitions Guidance, to ensure responsible use of Positioning, Navigation and Timing (PNT) services, pursuant to section 4(e) of E.O. 13905, Strengthening National Resilience Through Responsible Use of Positioning, Navigation, and Timing Services, dated February 12, 2020. The E.O. was signed by the President on February 12, 2020, and published in the Federal Register at 85 FR 9359 on February 18, 2020. i. Background The E.O. included numerous tasks that were to be accomplished before the FAR Council could proceed with amending the FAR, the last of which was the Department of Homeland Security's draft of contractual language in accordance with section 4(d) of the E.O., which was provided in May 2024. Consistent with section 4(e) of E.O. 13905, this rule proposes to amend the FAR to implement a requirement for acquisition planners to consult the Federal PNT Services Acquisitions Guidance when developing requirements for products, systems, or services dependent on PNT services. The E.O. seeks to help organizations protect against the disruption or manipulation of PNT services, particularly those organizations whose use of PNT services is vital to the functioning of U.S. critical infrastructure. The E.O. defines PNT services as “any system, network, or capability that provides a reference to calculate or augment the calculation of longitude, latitude, altitude, or transmission of time or frequency data, or any combination thereof.” When PNT is used in combination with satellites and other information ( e.g., weather or traffic data) to form a navigation system with global coverage, the result is called a Global Navigation Satellite System (GNSS), with the most recognizable service example being the Global Positioning System (GPS). While PNT encompasses so much more than navigational functions, GPS is a major component. PNT services have become integral to the reliable and efficient functioning of critical technology and infrastructure, including the electrical power grid, communications infrastructure and mobile devices, all modes of transportation, precision agriculture, weather forecasting, and emergency response. Given the extensive reliance upon PNT services, disruption or manipulation of these services may adversely affect the national and economic security of the United States and Federal agencies must take such risks into consideration when planning for the acquisition of products, systems, and services that integrate or utilize such services. ii. PNT Profiles To better enable the responsible use of PNT services, the E.O., in section 4(a), directed the Department of Commerce to create PNT profiles to help organizations (1) identify systems, networks, and assets dependent on PNT; (2) identify appropriate PNT sources for such systems; (3) detect disruption and manipulation of PNT services; and (4) manage the risks to these systems. Accordingly, NIST, under the Department of Commerce, produced NIST Internal Report (IR) 8323r1, Foundational PNT Profile: Applying the Cybersecurity Framework for the Responsible Use of Positioning, Navigation, and Timing (PNT) Services, in January 2023. In this foundational PNT profile, NIST mapped their cybersecurity framework functions of identify, protect, detect, respond, and recover to elements of responsible use of PNT services described in the E.O. ( i.e., identify PNT dependencies, identify appropriate PNT services, detect disruption and manipulation to PNT services, and manage risks to products and services dependent on PNT). This PNT profile provides a robust and flexible framework for PNT users to manage risks. The PNT profile is voluntary and intentionally generalized to enable the development of subsequent sector-specific profiles or guidance. iii. PNT Acquisition Guidance The Department of Homeland Security (DHS) was tasked in section 4(d) of the E.O. with the development of contractual language regarding PNT services for insertion in relevant Federal contracts. The Cybersecurity and Infrastructure Security Agency (CISA), a component of DHS, in conjunction with the Federal PNT Contract Language Development Working Group, developed guidance to assist agencies when procuring PNT-dependent products, systems, or services. CISA's Federal PNT Services Acquisitions Guidance (Version 1.0), dated February 2024, leverages the PNT profiles established in NIST's IR 8323r1 to further aid PNT program managers, acquisition professionals, and contractors in the assessment of their PNT dependencies. The guidance also establishes recommendations for appropriate levels of resiliency based upon the operational needs of the proposed product, system, or service. iv. Scope Considerations When considering the scope of this proposed rule and the appropriate language that would prompt relevant acquisition planners to consult the Federal PNT Services Acquisitions Guidance, the FAR Council harmonized potentially disparate terminology in the E.O. and utilized the language in section 4(a) of the E.O., “dependent on PNT services.” The Federal PNT Services Acquisitions Guidance provides robust guidance to acquisition planners, and the effort entailed to understand and apply the guidance to a specific effort is complex and requires subject matter expertise. To apply this guidance to all products and services “that integrate or use” PNT services could be interpreted broadly. For example, a contracting officer acquiring a dozen office chairs may recognize the commercial carrier delivering the office chairs on behalf of the vendor utilizes a mapping service that uses GPS to assist in navigation to the office building. In this scenario, a contracting officer might consider whether they should work with the requiring activity to conduct a detailed PNT dependency and vulnerability analysis which requires significant cybersecurity expertise, turning what should be a simple commercial transaction for furniture into an unexpectedly burdensome exercise. This type of application would be disproportionate and at odds with the guiding principles of the FAR. Conversely, a contracting officer acquiring a high-precision weather forecasting device or service that provides critical information for essential safety functions could expect the requiring activity to consider PNT services implications in the requirements documents. Federal procurement needs are extremely varied, and exercising sound business judgment is imperative in meeting customer needs while fulfilling policy objectives. This rule also proposes the use of “as appropriate” in the prompting to acquisition planners to provide space for exercising sound business judgment in the best interest of the Government. v. FAR Part 39 Updates FAR 39.105, Positioning, navigation, and timing (PNT) services, is added to direct agencies to use the Federal Positioning, Navigation, and Timing Services Acquisition Guidance when acquiring products or services dependent on PNT services. The term “positioning, navigation, and timing (PNT) services” is being established under FAR 39.002, Definitions. G. Summary of Changes to FAR Part 40 This rule proposes revisions to FAR part 40 to merge and consolidate regulations found in multiple FAR parts and subparts into a single, logically organized part. The proposed changes streamline requirements; improve national security, create a single “do not buy” list; reduce and harmonize over a dozen different provisions and clauses related to security prohibitions and exclusions; add requirements for handling controlled unclassified information; and implement covered procurement actions. The definition of unmanned aircraft system is being proposed to be updated to implement the American Security Drone Act of 2023; Unmanned Aircraft System List of Associated Elements interim rule and to include a reference to 41 CFR 201-1.101 for the list of associated elements to be identified by the Federal Acquisition Security Council (FASC). 1. Consolidation of Regulations This proposed rule aims to consolidate the FAR cases listed in the following table: FAR case No. FAR case title Rule type FR citation FR date 2017-016 Controlled Unclassified Information Proposed 90 FR 4278 1/15/2025 2018-017 Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment 1st Interim 2nd Interim 84 FR 40216 84 FR 68314 8/13/2019 12/13/2019 2019-009 Prohibition on Contracting with Entities Using Certain Telecommunications and Video Surveillance Services or Equipment 1st Interim 2nd Interim 85 FR 42665 85 FR 53126 7/14/2020 8/27/2020 2019-018 Federal Acquisition Supply Chain Security Act of 2018 Proposed Not published N/A 2020-011 Implementation of FASCSA Orders Interim 88 FR 69503 10/5/2023 2023-010 Prohibition on a ByteDance Covered Application Interim 88 FR 36430 6/2/2023 2024-002 Prohibition on Unmanned Aircraft Systems From Covered Foreign Entities Interim 89 FR 89464 11/12/2024 Public comments received on these rules have been reviewed and considered in the drafting of this proposed rule. This rule proposes to reorganize FAR part 40 into three key subparts: Processing Supply Chain Risk Information; Security Prohibitions and Exclusions; and Safeguarding Information. The changes proposed streamline requirements by merging and consolidating existing content from FAR parts 4, 25, and 40, removing redundancies, and improving clarity. Proposed revisions also consolidate five separate provisions into one provision. Similarly, this proposed rule also consolidates seven separate clauses to one clause. Reorganizing the content and consolidating information allows contractors and the acquisition workforce to better understand how current prohibitions are related, reducing the burden on the Government workforce and contractors while improving national security. 2. Updates to Telecommunications and Video Surveillance Equipment Prohibition The FAR Council issued two interim rules (see FAR cases 2018-017 and 2019-009) to implement sections 1(a)(A) and 1(a)(B) of Section 889 of the NDAA for FY 2018. Respondents submitted comments in response to these interim rules. Many commenters recommended clarifying, updating, or creating defined terms to aid with implementation. There were also multiple commenters who expressed concern with the burden the rules imposed on the public and Government. To address the public comments received and reduce burden on both the public and Government, this rule proposes to incorporate the following updates to the prohibition requirements from the interim rules: i. Covered Telecommunications Equipment or Services Definition Update the definition of “covered telecommunications equipment or services” to clarify what “produced” means within the context of this definition. See FAR 40.201 and FAR 52.240-3, Security Prohibitions and Exclusions. ii. Critical Technology Definition Update the definition of “critical technology” to a technology in whose absence a system cannot adequately operate or function. See FAR 52.240-3(a). iii. New Definitions Add new definitions for “system,” “telecommunications equipment,” “telecommunications services,” “video surveillance equipment,” and “video surveillance services.” See FAR 40.201 and FAR 52.240-3. These definitions align with the definition of telecommunications at Defense Federal Acquisition Regulation Supplement (DFARS) 239.7401. iv. Prohibition Exceptions Add clarity regarding the scope of the prohibition exceptions. See FAR 52.240-3(b)(3). v. Scope of “Use of Covered Telecommunications Equipment or Services” Within Prohibition To address questions regarding what activities are covered by the prohibition, this rule clarifies that the following activities are not individually considered use of covered telecommunications equipment or services: commercial sales, maintenance, testing services, warranty services, and employee's use of personal equipment. See FAR 52.240-3(d)(1). 3. Harmonization of Requirements This proposed rule harmonizes requirements for security prohibitions and exclusions. Changes are proposed to align standards for reasonable inquiry, reporting time frame and report requirements. Previously, some of the prohibitions did not include a reasonable inquiry standard that clarified what level of effort is required to determine if there are any prohibited products or services. Also, the prohibitions that had reasonable inquiry standards used slightly different language between the prohibitions. This created more uncertainty for offerors and contractors while adding liability risk for industry. Under this proposed rule, there would be just one reasonable inquiry standard across the prohibitions that clarifies that an offeror or contractor does not need to conduct an internal or third-party audit. Consistent application of the standard reduces liability risk for offerors and contractors by clarifying that third party audits are not required and due diligence does not require gathering information outside their possession. See FAR 52.240-2(c) through (g) and FAR 52.240-3(g) and (j)(2). Another inconsistency across various security prohibitions and exclusions is the various disclosure and reporting requirements. This rule proposes to standardize the report and disclosure timeframe to 72 hours from discovery with just one required report. This change aligns with the 72 hours for incident reporting which is the reporting standard in the Cyber Incident Reporting for Critical Infrastructure Act of 2022 and the DoD CUI incident reporting requirements in DFARS 252.204-7012. Providing one standard timeframe for prohibitions and incident reporting simplifies reporting for offerors and contractors. This proposed rule also harmonizes the disclosure and reporting elements required in each report. This reduces burden and simplifies compliance for offerors and contractors who will have to spend less time deciphering unique reporting requirements for each prohibition. 4. Covered Procurement Actions This rule proposes to implement section 203 of the Federal Acquisition Supply Chain Security Act of 2018 (Title II of the SECURE Technology Act, Pub. L. 115-390, Dec. 21, 2018 (see 41 U.S.C. 4713)). This statute authorizes agencies to take agency specific exclusion actions called “covered procurement actions.” The specific exclusion actions allowed by the statute are defined in this rule as part of the definition of covered procurement action. The rule clarifies that agencies must establish procedures to ensure compliance with the requirements in 41 U.S.C. 4713, and that the use of this authority applies to a single covered procurement action or a class of covered procurement actions. This rule proposes to add requirements within the consolidated provision at FAR 52.240-2 at paragraphs (b)(3) and (e) that would require an offeror to represent that they have conducted a reasonable inquiry, and that the offeror does not propose to provide or use in response to a solicitation any products or services that are prohibited by an applicable covered procurement action in effect on the date the solicitation was issued, except as waived by the solicitation, or as disclosed by the offeror. This rule also proposes to add requirements to the consolidated clause at paragraph (f) in FAR 52.240-3. FAR 52.240-3(f) prohibits contractors from providing or using any products or services in performance of the contract that are prohibited by an applicable covered procurement action that has been identified in the solicitation or posted in SAM at www.sam.gov, unless the Government has issued an applicable waiver. Under the authority of 41 U.S.C. 4713, covered-procurement actions are specific agency decisions with respect to supply chain risk, and do not apply to micro-purchases. The statute requires a procurement to include a supply chain risk requirement or evaluation factor before a covered procurement action can apply and micro-purchases do not have a supply chain risk requirement or evaluation factor. 5. Controlled Unclassified Information (CUI) Requirements Changes are proposed to amend the FAR to implement the National Archives and Records Administration's (NARA) Controlled Unclassified Information Program enacted under an Executive Order entitled Controlled Unclassified Information. These FAR changes are proposed to implement NARA's final rule on the Federal CUI Program as it relates to performance under Federal contracts. This rule proposes to create a common mechanism, the Standard Form XXX, Controlled Unclassified Information (CUI) Requirements, to enable a uniform process for communicating the information contractors must manage and safeguard as well as identify where a CUI incident must be reported and when there are CUI incident reporting requirements that differ from or are in addition to those in the clause at FAR 52.240-7(e). Currently laws, Federal regulations, and Government-wide policies already mandate these protections, but there is not a standard way these requirements are identified and shared with contractors. On January 15, 2025, the FAR Council issued FAR Case 2017-016, Controlled Unclassified Information, as a proposed rule at 90 FR 4278. Respondents submitted comments in response to this proposed rule. Multiple respondents submitted comments regarding the CUI incident reporting timeline. Based on these comments, the timeline for reporting CUI incidents has been updated in this proposed rule to 72 hours from discovery which aligns with related incident reporting requirements ( e.g., DFARS 252.204-7012, Cyber Incident Reporting for Critical Infrastructure Act of 2022) and ensures contractors have sufficient time to provide accurate information and determine whether the event qualifies as a CUI incident. The rule has been updated so that the contractor must submit within the first report as many of the applicable data elements that are available at the time. If the first report does not contain all of the applicable data elements or some of the information changes after the investigation is substantially complete, the contractor must submit a subsequent report containing the updated or new information in accordance with FAR 52.240-7(e)(2). This rule also incorporates the following significant updates to the CUI requirements that will reduce burden on both the public and Government. Additionally, the clause at FAR 52.240-YY, Identifying and Reporting Information That Is Potentially Controlled Unclassified Information, has been deleted. These changes were based on the public comments received on the proposed rule published at 90 FR 4278. The FAR Council is seeking additional comments on these proposed changes. CUI Incident Reporting Location for CUI in a Non-Federally-controlled Facility. The location for incident reporting for Department of Defense contracts is https://dibnet.dod.mil and for non-Department of Defense contracts is to CISA at https://www.cisa.gov/reporting-cyber-incident. The contractor must also provide a notification to the contracting officer that a CUI incident report has been submitted. For any CUI incident involving a FedRAMP authorized cloud computing service provider that has reported the CUI incident in accordance with FedRAMP Incident Communication Procedures, the contractor is not required to submit any additional report beyond following the FedRAMP Incident Communication Procedures. CUI Incident Reporting Subcontractor Requirements. The subcontractor reporting in the rule has been updated to have the subcontractor report directly to the Government and provide a notification to the contracting officer and next higher tier contractor (if applicable) in accordance with FAR 52.240-7(e)(2). CUI Incident Reporting Scope. The definition of CUI incident has been updated to only require unauthorized disclosures, improper modifications, or improper destruction of CUI, in any form or medium, or unauthorized access to the information system on which the CUI resides. The definition has also been updated to clarify that improper handling of CUI ( e.g., unmarked or mismarked CUI) is not a CUI incident unless the improper handling has resulted in unauthorized disclosure, improper modification, or improper destruction of CUI. The rule has also been updated to add an exception for any CUI incident involving a FedRAMP authorized cloud service provider that is reported in accordance with FedRAMP incident communication procedures. Reporting of Unmarked or Mismarked CUI. This rule proposes to extend the reporting time frame to 72 hours from discovery to align with related incident reporting requirements ( e.g., DFARS 252.204-7012, Cyber Incident Reporting for Critical Infrastructure Act of 2022) and ensure contractors have sufficient time to provide accurate information. Training. This rule proposes to remove the requirement for specific training that mandated a one-size-fits-all approach for how contractors must train their employees. The updated approach provides flexibility similar to other FAR requirements regarding how contractors ensure their employees will have the knowledge, skills, and abilities to comply with the requirements of this rule. Contractor Liability. The rule has been updated to remove the language specifying contractor liability for CUI incidents. Contractor Identification of Proprietary Information. The prescriptive requirements to identify contractor proprietary information have been removed from the CUI provision and clause, because other parts of the FAR already detail requirements for handling such information ( e.g., FAR 3.104-4 and 52.215-1(e)). Contractor Proprietary Information Status as CUI. This rule proposes to update the definition of CUI to add an exception for information a contractor creates or possesses that a law, regulation, or Governmentwide policy does not specifically require the contractor to handle using safeguarding or dissemination controls. Standard Form XXX. This rule proposes to update the SF XXX to add information regarding the safeguarding and/or dissemination authority and the indicator for identifying each category of CUI. This update will make it easier for contractors to understand the specific types of CUI that will be involved, including the specific controls. Additional conforming updates have been made to the SF XXX to conform with updates in the clause at FAR 52.240-7 and provision at FAR 52.240-6 ( e.g., removal of training requirements). To reduce burden and ensure uniformity across the Government, SF XXX was also updated to identify the applicable organizational defined parameters for NIST 800-171 Revision 3. These organizationally defined parameters are necessary to ensure contractors only have to follow one standardized requirement across Government. The Government intends to harmonize these organizationally-defined parameters to ensure contractors can follow one standardized approach for protecting CUI across agencies. Consequently, this rule aligns to the values that will be codified in 32 CFR part 170 via DoD rulemaking. Current definitions for these values may be found at https://dowcio.war.gov/Portals/0/Documents/CMMC/OrgDefinedParmsNISTSP800-171.pdf. Enhanced Controls Using NIST SP 800-172. This rule proposes to update the clause at FAR 52.240-7 to clarify that specific requirements within NIST SP 800-172 will only apply when identified by the agency for a critical program or high-value asset. The Government intends to harmonize these organizationally-defined parameters to ensure contractors can follow one standardized approach for protecting CUI across agencies. Consequently, this rule aligns with the values at 32 CFR 170.14. Potential Inconsistent Requirements Between This Rule and Other Regulations. This rule proposes to add a new paragraph (f) to FAR clause 52.240-7 that states contractors must notify the contracting officer within 72 hours of determining that they are not able to comply with any of the requirements in this clause due to conflict with another law or regulation. This will allow flexibility for agencies to work with contractors on alternative controls where another domestic or foreign law may prevent compliance with a specific requirement in the clause. Government Access to Contractor Facilities and Systems. This rule proposes to remove the compliance requirements at FAR 52.240-7(e). Government Validation Actions. This rule proposes to remove the compliance section in the clause that contained the validation requirements since specific procedures for validation do not need to be specified in this rule. Normal contract administration procedures for validating compliance with requirements are sufficient. CUI Definition. This rule proposes to update the definition for CUI to remove the exclusions for covered Federal information and classified information since these exclusions are not necessary for these terms. Cloud Services Controls. The rule proposes to update FAR 52.240-7 to state that if the Contractor uses a cloud service provider to store, process, or transmit any CUI identified in SF XXX, the cloud computing service provider must meet security requirements equivalent to those established by the Government for FedRAMP Moderate baseline. This is meant to provide more flexibility to the contractor while ensuring the contractor implements the applicable security requirements. Patents. This proposed rule removes updates to patents in FAR part 27. Subcontract Flow Down. This proposed rule updates the subcontractor flowdown at FAR 52.240-7(g) to clarify that there is no requirement to include the SF XXX or modified version of the SF XXX. Contractors can decide how best to flow down the requirements in the SF XXX. Virtual Desktop Infrastructure. This proposed rule updates FAR 52.240-7(d)(3)(ii)(A) to state that an endpoint hosting a virtual desktop infrastructure (VDI) client configured to prevent any processing, storage, or transmission of CUI beyond the keyboard/video/mouse sent to the VDI client is considered an out-of-scope asset. Telecommunication Providers Transmitting CUI. The rule has been updated to exempt commercial communications networks that transmit government and non-government information using the same equipment, protocols, and methodologies, without regard to the source or recipient of the information (see FAR 52.240-7(d)(3)(ii)(A)). H. Summary of Changes to FAR Part 52 1. FAR 52.000, 52.1 and 52.3. This proposed rule updates FAR 52.000, Scope of part, and 52.3, Provision and Clause Matrix to remove the text and mark it as reserved. FAR 52.1, Instructions for Using Provisions and Clauses, is being proposed to be revised to streamline and remove nonstatutory and redundant text. The text in FAR 52.101(b)(1), concerning the numbering of FAR provisions and clauses, is being proposed to be moved to FAR 1.104(b), where other details about the FAR's arrangement and numbering are provided. Additionally, the text at FAR 52.101(b)(2), which addresses provisions or clauses supplementing the FAR, is proposed for relocation to FAR 1.201(a)(1). This move aims to consolidate information related to agency acquisition regulations. 2. FAR Part 52 renumbering of provisions and clauses. As a result of the RFO, the FAR Council is considering establishing a new FAR subpart in part 52, and relocating and renumbering all provisions and clauses under this new subpart. This means, if subpart 52.4 was used, all provisions and clauses would begin with 52.4 instead of 52.2. This change is anticipated to prevent confusion and increase compliance by creating a clear distinction between versions of a provision or clause prior to the RFO. Other benefits include avoiding potential clause numbering conflicts and information system and data collection impacts. The FAR Council welcomes comments on the potential impact of such a change on contractors, government personnel, and other stakeholders. I. Summary of Changes to FAR Part 53 This rule proposes to relocate the content from the existing FAR part 53 to a new FAR subpart 1.6, and mark FAR part 53 as reserved. For more details, refer to paragraph B.2 of this Discussion and Analysis section. III. Applicability to Contracts and Subcontracts Valued at or Below the Simplified Acquisition Threshold and for Commercial Products and Commercial Services The following sections address the applicability of provisions and clauses prescribed in parts 1, 2, 4, 33, and 40 to solicitations and contracts valued at or below the simplified acquisition threshold (SAT) and those for the acquisition of commercial products, commercially available off-the-shelf (COTS) items, and commercial services. Prescriptions for provisions and clauses in these parts have been updated to reflect applicability to commercial acquisitions. A. Contracts and Subcontracts Valued at or Below the Simplified Acquisition Threshold This proposed rule, if finalized, does not alter the prescriptions of provisions and clauses included in this proposed rule to change their applicability to contracts and subcontracts valued at or below the SAT. This proposed rule, if finalized, would consolidate the provisions at FAR 52.204-3, Taxpayer Identification; 52.204-6, Unique Entity Identifier; 52.204-16, Commercial and Government Entity Code Reporting; 52.204-17, Ownership or Control of Offeror; and 52.204-20, Predecessor of Offeror; under the revised provision at FAR 52.204-7, if SAM registration is required; or a new solicitation provision at FAR 52.204-XX, Offeror Identification, if SAM registration is not required. This proposed rule, if finalized, would consolidate the clauses at FAR 52.204-12, Unique Entity Identifier Maintenance; and 52.204-18, Commercial and Government Entity Code Maintenance; under the revised clause at FAR 52.204-13, if SAM registration is required; or a new contract clause at FAR 52.204-YY, Contractor Identification, if SAM registration is not required. The consolidated FAR provisions and clauses would continue to apply to contracts valued at or below the SAT. This proposed rule, if finalized, would transfer the provision(s) at 52.204-24, Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment, 52.204-26, Covered Telecommunications Equipment or Services—Representation, 52.204-29, Federal Acquisition Supply Chain Security Act Orders—Representation and Disclosures, 52.225-20, Prohibition on Conducting Restricted Business Operations in Sudan—Certification, and 52.225-25, Prohibition on Contracting with Entities Engaging in Certain Activities or Transactions Relating to Iran—Representation and Certifications and consolidate the requirements into a new provision at FAR 52.240-2, Security Prohibitions and Exclusions- Representations and Certifications. Additionally, this proposed rule, if finalized, would transfer the clauses(s) at 52.204-23, Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab Covered Entities, 52.204-25, Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment, 52.204-27, Prohibition on a ByteDance Covered Application, 52.204-28, Federal Acquisition Supply Chain Security Act Orders—Federal Supply Schedules, Governmentwide Acquisition Contracts, and Multi-Agency Contracts, 52.204-30, Federal Acquisition Supply Chain Security Act Orders—Prohibition, 52.225-13 Restrictions on Certain Foreign Purchases, and 52.240-1 Prohibition on Unmanned Aircraft Systems Manufactured or Assembled by American Security Drone Act—Covered Foreign Entities and consolidate the requirements into a new clause at FAR 52.240-3, Security Prohibitions and Exclusion. The provision and clause would continue to apply to contracts and subcontracts valued at or below the SAT. See section II.G.4. of this preamble. This proposed rule, if finalized, will also implement the requirements of section 203 of the Federal Acquisition Supply Chain Security Act of 2018 (Title II of the SECURE Technology Act, Pub. L. 115-390, Dec. 21, 2018 (see 41 U.S.C. 4713)) in the provision at FAR 52.240-2, Security Prohibitions and Exclusions—Representations and Certifications, and the clause at FAR 52.240-3, Security Prohibitions and Exclusions. 41 U.S.C. 1905 governs the applicability of laws to contracts valued at or below the SAT. Section 1905 exempts contracts and subcontracts valued at or below the SAT from certain provisions of law unless the Federal Acquisition Regulatory Council (FAR Council) makes a written determination that doing so would not be in the best interest of the Federal Government. The FAR Council intends to make a determination to apply this statute to acquisitions valued at or below the SAT. Covered procurement actions, which are specific agency decisions with respect to supply chain risk executed under the authority in 41 U.S.C. 4713, will not be taken with respect to micro-purchases, since the statute requires a procurement to include a supply chain risk requirement or evaluation factor before a covered procurement action can apply and micro-purchases do not have a supply chain risk requirement or evaluation factor. See section II.G.4. of this preamble. B. Contracts and Subcontracts for Commercial Products, Commercially Available Off-The-Shelf Items, and Commercial Services 41 U.S.C. 1906 governs the applicability of laws to contracts for the acquisition of commercial products and commercial services and gives the FAR Council the authority to determine to apply a law to contracts or subcontracts for the acquisition of commercial products and commercial services. 41 U.S.C. 1907 exempts contracts for commercially available off-the-shelf (COTS) items from certain provisions of law unless the Administrator for Federal Procurement Policy determines that doing so would not be in the best interest of the Federal Government. Section 839 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L. 115-232) required the FAR Council and the Administrator of Federal Procurement Policy to review prior determinations under 41 U.S.C. 1906 and 41 U.S.C. 1907, as well as the applicability of provisions and clauses to contracts and subcontracts for commercial products, COTS items, and commercial services that do not implement statute or Executive Order, and propose amendments to the FAR to eliminate or exempt such requirements from commercial acquisitions, unless there are specific reasons to retain particular requirements. In accordance with section 839 of the NDAA for FY 2019 and their authorities under 41 U.S.C. 1906 and 1907, the FAR Council reviewed the applicability of the provisions and clauses associated with the FAR parts covered by this proposed rule. The following table reflects the FAR Council and Administrator of Federal Procurement Policy's proposed determination regarding the applicability of the provisions and clauses to solicitations and contracts for commercial products, COTS items, and/or commercial services. In making proposed applicability determinations, the FAR Council considered factors such as whether the provision or clause advances national security or economic security, contributes to the resilience of contractors and subcontractors in the federal marketplace, or advances uniformity and clarity in the performance of basic functions that are essential to sound procurement. Accordingly, this proposed rule, if finalized, would revise provision and clause prescriptions to clearly reflect applicability to commercial acquisitions as outlined in the table. An “X” in the following table indicates the provision or clause will apply to that category of commercial acquisition, as prescribed: Provision/clause No. Title Commercial products Commercial services COTS items 52.201-2 Computer Generated Forms X X X 52.202-1 Definitions X X X 52.204-5 Women-Owned Business (Other Than Small Business) X X X 52.204-7 System for Award Management—Registration X X X 52.204-7 Alt I System for Award Management—Registration X X X 52.204-9 Personal Identity Verification of Contractor Personnel X X 52.204-10 Reporting Executive Compensation and First-Tier Subcontract Awards 52.204-13 System for Award Management—Maintenance X X X 52.204-14 Service Contract Reporting Requirements 52.204-15 Service Contract Reporting Requirements for Indefinite-Delivery Contracts 52.204-19 Incorporation by Reference of Representations and Certifications X X X 52.204-XX Offeror Identification X X X 52.204-YY Contractor Identification X X X 52.233-1 Disputes X X X 52.233-2 Service of Protest X X X 52.233-3 Protest after Award X X X 52.233-3 Alt I Protest after Award 52.233-4 Applicable Law for Breach of Contract Claim X X X 52.240-2 Security Prohibitions and Exclusions—Representations and Certifications X X X 52.240-3 Security Prohibitions and Exclusions X X X 52.240-3 Alt I Security Prohibitions and Exclusions X X X 52.240-4 Classified information X X X 52.240-4 Alt I Classified information 52.240-4 Alt II Classified information X 52.240-5 Covered Federal Information Systems X X 52.240-6 Notice of Controlled Unclassified Information X X 52.240-7 Controlled Unclassified Information X X The FAR Council also reviewed subcontract flow down requirements in clauses associated with the FAR parts covered by this proposed rule. The following table reflects the FAR Council and Administrator of Federal Procurement Policy's proposal regarding whether those clauses flow down to subcontracts for commercial products, COTS items, and/or commercial services. This proposed rule, if finalized, would revise the subcontract paragraphs in these clauses to clearly state whether the clause flows down to commercial subcontracts, as outlined in the table. An “X” in the following table indicates the provision or clause will apply to subcontracts for that category of commercial subcontracts, as described in the clause: Clause No. Title Commercial products Commercial services COTS items 52.204-9 Personal Identity Verification of Contractor Personnel X X 52.204-14 Service Contract Reporting Requirements 52.204-15 Service Contract Reporting Requirements for Indefinite-Delivery Contracts 52.240-3 Security Prohibitions and Exclusions X X X 52.240-3 Alt I Security Prohibitions and Exclusions X X X 52.240-4 Classified information X X X 52.240-4 Alt I Classified information X X X 52.240-4 Alt II Classified information X X X 52.240-5 Covered Federal Information Systems X X 52.240-7 Controlled Unclassified Information X X IV. Expected Impact of the Rule The intended impact of the RFO, as stated in E.O. 14275, is to restore the Government's ability to “deliver on a timely basis the best value product or service to the customer, while maintaining the public's trust and fulfilling public policy objectives.” Each of the RFO rulemakings is designed to contribute to this impact by emphasizing mission first, by aligning acquisition activities directly to achieving the agency's overarching objectives and serving the public interest and elevating the importance of fiscal responsibility. The proposed RFO rules focus on three goals in particular: (1) timely acquisition and delivery, (2) lower cost and accountability in all spending, and (3) increased competition. Timeliness. Timely acquisition and delivery are essential for mission success. To this end, RFO rules propose to eliminate mandates that unnecessarily interfere with agency discretion to determine the best way to procure products and services. The proposed RFO rules highlight more clearly streamlined and simplified authorities that allow buyers to use their time more efficiently and are expected to reduce time between solicitation and award. The proposed RFO rules are expected to make it easier for contracting officers to leverage commercial practices that are familiar to the commercial marketplace. This is expected to make it easier for sellers to engage and respond to Government solicitations more rapidly. Lower cost. E.O. 14271, Ensuring Commercial, Cost-Effective Solutions in Federal Contracts (April 15, 2025), directs the Government to utilize, to the maximum extent practicable, the commercial marketplace and the innovations of private enterprise to provide better, more cost-effective services to taxpayers, as envisioned by the Federal Acquisition Streamlining Act. The procurement of custom products and services where a suitable or superior commercial solution would have fulfilled the Government's needs has resulted in avoidable waste to the detriment of American taxpayers. To address these concerns, consistent with associated responsibilities in section 839 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L. 115-232), the FAR Council reviewed prescriptions for provisions and clauses to ensure all prescriptions are clear regarding their applicability to acquisitions for commercial products and services. Currently, many prescriptions do not specify applicability to commercial acquisitions and leave the applicability determination to contracting officer interpretation. By specifically stating when a provision or clause can be applied to commercial acquisitions, proposed RFO rules should decrease the likelihood of inclusion of provisions and clauses in commercial acquisitions that are not required by law and drive greater consistency in the terms and conditions used in these contracts. In turn, these changes should increase the participation of commercial sellers, who are unwilling or unable to manage the cost of complying with noncommercial requirements, and also improve taxpayer access to affordable commercial solutions. Some RFO rules propose to delete requirements placed on commercial or noncommercial sellers that are not related to performance of the contract, drive up cost without attendant performance benefits, and may misdirect efforts away from innovation, investment and economic growth. Greater emphasis on timeliness should reduce bidders' carrying costs, enabling them to pass those savings on to customers through lower prices. Increased competition. Since enactment of the Competition in Contracting Act of 1984 (Title VII of Pub. L. 98-369), competition has been the cornerstone of the Federal acquisition system. The benefits of competition are well established: competition saves money for the taxpayer, improves contractor performance, curbs fraud, and promotes accountability for results. Competition also drives contractor resilience and positions the U.S. market to develop a strategic advantage for the nation. According to data in the SAM Contract Awards Management, roughly 45 percent of contract dollars were awarded in FY 2025 either without competition or with competition that received only one offer. Of equal concern, the Federal marketplace has seen a significant decline over the past 20 years in the number of businesses—especially small businesses—participating in the Federal supplier base. Studies suggest that high compliance costs lead to the misallocation of resources away from more profitable activities and discourage innovation, investment, and economic growth (Council of Economic Advisers, Executive Office of the President. June 2025. The Economic Benefits of Current Deregulatory Policies. https://www.whitehouse.gov/wp-content/uploads/2025/03/The-Economic-Benefits-of-Current- Deregulatory-Efforts.pdf ). This may shelter incumbent contractors and stifle competition, reducing startup activity and job formation. The RFO rules seek to increase participation in agency competitions and the resilience of the Federal supplier base, which includes commercial entities, small businesses, manufacturers, and nontraditional suppliers. The RFO will achieve this outcome by removing regulatory mandates that are not rooted in statute or essential to sound procurement, promoting greater reliance on practices that reduce transaction costs, and improving the quality of communications with offerors and potential offerors. Access to a broader range of solutions in a more dynamic marketplace will drive better return for each taxpayer dollar spent and increase taxpayer confidence in the Federal acquisition system. The Government has conducted a regulatory impact analysis (RIA) for the RFO rulemaking inclusive of this proposed rule for FAR parts 1, 2, 4, 33, 40 and 53. The RIA includes a discussion of the anticipated effects of the rulemakings as follows: 1. FAR Part 1 This proposed rule, if finalized, is not expected to have a significant impact on contractors or subcontracts. The proposed changes to FAR part 1 are primarily internal Government procedures. Guiding principles. FAR part 1 revises the guiding principles for the entire FAR system and sets the tone for the revolutionary FAR overhaul. The FAR now emphasizes the importance of meeting the agency's mission first efficiently and effectively. By prioritizing the efficient and effective achievement of agency missions, the revision is expected to streamline decision-making and better align acquisition outcomes with strategic Government goals. The proposed changes also recognize the value of timely acquisitions balanced with encouraging innovation, promoting merit and meeting mission ensures taxpayer dollars are being spent effectively, which benefits both Government and industry. The explicit recognition of timely acquisitions, balanced with encouraging innovation and merit, is a benefit that fosters a more dynamic and responsive marketplace. This strategic balance is intended to drive better value and more effective stewardship of taxpayer dollars. The retention and stronger emphasis on maximizing commercial products and commercial services will ensure the Government leverages the full capabilities of the commercial sector. Regulatory sunset. This proposed rule establishes a process for the FAR Council to periodically evaluate the non-statutory requirements retained in the FAR. This is expected to create burden for the FAR Council to conduct reviews and issue notices for public comment. However, it is expected to provide benefits to contractors and create a more agile FAR that keeps pace with changes in technology and the Federal marketplace. By requiring non-statutory rules to be periodically re-evaluated, it ensures that regulations remain necessary, clear, and relevant. Periodic re-evaluation also encourages the FAR Council to assess whether the expected benefits or costs associated with a provision have increased or decreased due to changes in technology or other relevant factors. During this process the costs and benefits of any action will be assessed as part of the rulemaking. Streamlining. The streamlining and removal of the table listing OMB approved information collections and the table listing the renaming of public laws as a result of the positive law codification from the FAR to www.acquisition.gov, enhance accessibility and reduce the administrative complexity associated with the FAR. This shift from a static text to a system pointing to live resources means that updates can occur without the lengthy rulemaking process, ensuring that information stays current, which ultimately makes it easier and faster for contractors to do business with the Government. 2. FAR Part 2 This proposed rule, if finalized, is not expected to have a significant impact on contractors or subcontracts. The proposed changes to FAR part 2 are intended to (1) remove terms that are no longer expected to be used in the FAR; (2) make revisions to the meaning of existing terms; (3) add new terms that are intended to be used in multiple FAR parts; (4) relocate certain terms to another FAR part where the term is used; and (5) create an acronym list. These changes are expected to benefit both industry and the Government by enhancing readability of the FAR. 3. FAR Part 4 The proposed changes to part 4 are expected to have a significant positive impact on both industry and the Government. • Reducing industry burden by not applying the following clauses to commercial contracts: FAR 52.204-10, 52.204-14, and 52.204-15. • Streamlining and clarifying the collection of information from entities interested in obtaining Government contracts whether SAM registration is required or not. • Reducing burden by consolidating 5 separate solicitation provisions into 2 provisions, FAR 52.204-7 when SAM registration is required or FAR 52.204-XX when SAM registration is not required. • Streamlining SAM registration by only having entity level representations and certifications in SAM. For the Government, the changes will result in: • Simplified Federal procurement. • Improved procurement outcomes through more accurate and traceable terms and conditions that are specific to each individual procurement. For industry, the changes will result in: • A SAM registration process that is more efficient and easier to navigate. • Reduced administrative burden and fewer requests to update company information in SAM once procurement-specific representations and certifications are moved to the individual solicitations. 4. FAR Part 33 This proposed rule, if finalized, is not expected to have a significant impact on contractors or subcontracts. The proposed changes to FAR part 33 more clearly describe the purpose of protests, encourage more disclosure of information at the agency protest level, and streamline General Accountability Office (GAO) protest procedures. These changes are intended to benefit and reduce burden on both Government and contractors. A. Purpose Statement This proposed rule establishes a purpose statement of the bid protest system (see FAR 33.100). Establishing a clear purpose statement for the bid protest system is fundamental to maintaining a fair and transparent bid protest system because it safeguards interested parties' rights to an independent review while promoting integrity, competition, and accountability in the FAR system. This clarity of purpose also serves to deter and discourage abuse, thereby reducing frivolous protests and minimizing disruption to the award process. B. Agency Protest Enhancements Agency protest enhancements are being proposed in this rule, including requiring contracting officers to report protests to the head of the contracting activity. This is expected to create additional burden on agencies to capture and track this information. However, this information is expected to result in improved economy and efficiency in Federal procurement in the long-term. Capturing and tracking this information increases agency awareness of protest issues and enables the Government to systematically elevate protest issues, and more effectively address concerns raised by protesters. This internal reporting mechanism strengthens the agency's ability to capture more comprehensive protest data, which is essential for informed decision making. For example, this data will enable agency management to identify agency-specific trends in protest issues and develop agency-wide actions to address them. Taken together this enhanced transparency and management oversight directly increases protestor confidence in the fairness and responsiveness of the agency protest process. For protests reviewed above the contracting officer, this rule proposes a significant enhancement by allowing the disclosure of a redacted copy of the agency's final technical evaluation of the protester's proposal and a redacted copy of the source selection decision. This disclosure will increase transparency and build credibility in the agency protest process. Additionally, producing these documents can reduce the number of protest grounds or render the protest moot. Most protests are filed with limited information. Insight into their evaluation and the award decision replaces guesswork with facts, eliminating the “information gap” which could lead to the withdrawal or dismissal of the protest. This coupled with the existing benefits of faster protest resolution time for agency protests, (35 days for agency protests versus 100 or more days for GAO protests) are expected to reduce disruptions in the acquisition process. For example, because protest of a contract award generally requires the agency to stay performance of the awarded contract pending resolution of the protest, faster protest resolution enables the agency to benefit from contract performance sooner. Consequently, these benefits are expected to lead to a reduction in litigation costs for both the Government and industry. C. Streamlining Government Accountability Office (GAO) Protest Regulatory Text This proposed rule removes regulatory text that repeats or summarizes GAO protest regulations and instead points contracting officers directly to the applicable GAO regulations at 4 CFR part 21. These changes make this section of the FAR more concise, clear, and easier to navigate. This is a critical benefit as it minimizes the risk of legal discrepancies between the different regulatory bodies, reduces the administrative burden on contracting officers, and lowers the long-term need for additional rulemaking to harmonize duplicative text. 5. FAR Part 39 This proposed rule, if finalized, is not expected to have a significant impact on contractors or subcontracts. A. Duplicative Privacy and Security Safeguards This proposed rule seeks to remove the requirements of FAR 39.105, Privacy and FAR clause 52.239-1, Privacy or security safeguards, since these requirements are addressed elsewhere in the FAR. Security controls that safeguard publication or disclosure are covered in FAR 53.240-3 Security Prohibitions and Exclusions, and other external controls exist that restrict disclosure of certain information and provide safeguards for Federal information systems ( e.g., PM-1: Information Security Program Plan and SR-2: Supply Chain Risk Management Plan). These changes directly contribute to increased clarity and readability for both contracting officers and contractors leading to reduced administrative burden as contracting officers and contractors no longer need to reconcile overlapping requirements. Furthermore, by pointing to external control plans that are updated outside of the lengthy rulemaking process, ensuring security and privacy safeguards remain current and responsive to an evolving environment. B. PNT Services This proposed rule, if finalized, is not expected to have a significant impact on contractors or subcontractors. This proposed rule primarily relates to internal Government business practices as it enhances acquisition planning regarding PNT services. These changes in the FAR will provide acquisition planners better guidance on how to assess for PNT dependencies, capture PNT operational requirements, and account for needed PNT resiliency. This guidance will provide contractors with a better understanding of such considerations in Government acquisitions for products, systems, or services dependent on PNT services. C. NICE Framework This rule proposes to require agencies to become familiar with the NICE Framework provided in NIST Special Publication 800-181 and additional tools to implement it at https://www.nist.gov/nice/ framework to describe the cybersecurity workforce tasks, knowledge, skills, and work roles when procuring information technology support services and cybersecurity support services. Agencies are expected to verify that offers, quotes, and reporting requirements ( e.g., contract deliverables) align with the NICE Framework. By using the NICE Framework to describe cybersecurity workforce tasks, knowledge, skills, and work roles, the proposed changes would create a common standard which would provide contractors with clearer and more standardized requirements in solicitations. This clarity reduces ambiguity and allows contractors to better tailor their offers and proposals to the Government's exact needs. This rule requires contractors to ensure contract deliverables are consistent with the NICE Framework when specified for the acquisition of information technology support services and cybersecurity support services. This change also provides contractors with a consistent roadmap for internal training and workforce development. By aligning their talent pool with the NICE Framework, contractors can more efficiently invest in and maintain a qualified workforce capable of meeting Federal contract requirements across multiple agencies. 6. FAR Part 40 1. Security Exclusions and Prohibitions Improved National Security. Part 40 consolidates and strengthens regulations that prohibit contracting with entities that pose security risks ( e.g., certain Chinese telecommunications companies, Kaspersky Lab, TikTok) and creates a single “do not buy” list. This directly protects federal information systems and critical infrastructure from foreign threats, which in turn enhances overall public safety and security. Enhanced Clarity and Compliance. The use of plain language and the consolidation of numerous provisions and clauses into fewer, more comprehensive ones ( e.g., merging five separate provisions into one provision, and seven separate clauses to one clause) reduces confusion for contractors. This clarity helps ensure higher compliance rates and more secure contracts across the Federal Government. Greater Efficiency and Faster Acquisitions. By streamlining complex, often redundant, security requirements from parts 4, 25, and 40 into a single, logically organized part 40, the process for acquisition professionals is simplified. This “common sense” approach reduces administrative burdens and the time it takes to award contracts, allowing Government agencies to acquire necessary goods and services more quickly and efficiently. Reorganizing the content and consolidating information allows contractors and the acquisition workforce to better understand how current prohibitions are related, reducing the burden on the Government workforce and contractors while improving national security. Covered Procurement Actions. This rule will allow executive agencies to use the authorities in 41 U.S.C. 4713 to exclude certain products, services, or sources from the Federal supply chain to protect national security. Foreign adversaries are increasingly creating and exploiting vulnerabilities in information and communications technology to commit malicious cyber-enabled attacks, including economic espionage against the United States and its citizens. Vulnerabilities may be introduced during any phase of the product or service life cycle: design, development and production, distribution, acquisition and deployment, maintenance, and disposal. This rule helps mitigate these supply chain risks by ensuring agencies can address these national security risks by excluding products, services, or sources through a covered procurement action. Excluding specific sources, services, or sources is an important tool for addressing these national security risks, because there are specific risks that cannot be mitigated through additional security controls being applied and can only be mitigated by complete exclusion. Telecommunications and Video Surveillance Equipment Prohibition. This rule incorporates several updates to the prohibition requirements from the interim rules such as clarifying definitions, exceptions, and the scope of the rule that will reduce burden on both the public and Government. For example, the rule clarifies what activities are not considered use of covered telecommunications equipment or services for purposes of this specific prohibition. The rule also proposes definitions for telecommunications equipment, telecommunications services, video surveillance equipment, video surveillance services, and system. 2. CUI Requirements Uniform Cybersecurity Practices. Establishing uniform requirements for how the acquisition workforce and Federal contractors manage CUI will significantly improve the Government and Federal contractors' ability to protect Federal information and information systems from criminals and our adversaries. Absent the uniform approach proposed in this rule, agencies will continue to employ ad hoc, agency-specific policies to manage this information, an approach that can cause agencies to mark and handle information inconsistently and inefficiently. While waivers may be applied in some circumstances, this rule is intended to establish a Governmentwide baseline that will lead to more effective implementation of protections for this sensitive information by the acquisition workforce and contractors. More effective implementation of requirements for identifying and marking CUI will reduce scenarios in which contractors may not realize the information that they are handling is sensitive information that must be safeguarded. Protection From Potential Financial Impacts of CUI Incidents. Failure to adopt these basic cybersecurity requirements can have a substantial financial impact on a business. There have been many analyses regarding the cost of cybersecurity incidents and the estimates vary widely. In order to establish a defensible set of cost and loss data that is suitable for the analysis of cybersecurity incident costs in the Federal sector, the Cyber Security and Infrastructure Security Agency (CISA) Office of the Chief Economist (OCE), in the Department of Homeland Security, reviewed a broad range of cyber cost and loss studies and presented an analysis of the per-incident, aggregate, and scenario-based estimates of cyber loss. On October 26, 2020, the CISA OCE released a report ( https://www.cisa.gov/sites/default/files/2024-10/CISA-OCE%20Cost%20of%20Cyber%20Incidents%20Study_508.pdf ) with the results of their analyses and a summary of per-incident loss estimates available in the most widely cited published research, commercial datasets, and industry reports. OCE estimated the median cost of a cybersecurity incident cited in the surveyed publications ranged from $0.5 to $1.6 million. The maximum cost per incident cited ranged from $11.7 million to greater than $1 billion. The CISA OCE acknowledges in its report that the differences in the assumptions, approaches to data collection, and specific incidents included in the datasets for the above sources result in a high degree of variability among the loss estimates. Increased Protection of Sensitive Information. Given the potential financial impacts a CUI incident may have on companies and individuals, it is imperative that Federal contractors who are entrusted with sensitive information in the performance of Government contracts adopt the basic cybersecurity hygiene requirements outlined in this rule. This increased baseline of cybersecurity hygiene across Federal contractors will reduce the number of incidents that have the potential to place sensitive information at risk and pose serious threats to individuals, Federal operations and assets, and the contractors themselves. For the remaining incidents that may occur, the requirement for contractors to report CUI incidents will allow the Federal Government to have appropriate situational awareness, quickly respond to the incident, and reduce the impact of the event. 7. FAR Part 53 Creating a centralized FAR forms list on www.acquisition.gov and referencing it in the new FAR subpart 1.6 (where the existing FAR part 53 is moving) simplifies user access to the forms and forms-related information. This change allows the list of forms to be updated outside the formal rulemaking process, reducing the FAR Council's administrative burden and speeding up Government updates. V. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is a significant regulatory action and, therefore, was subject to review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. VI. Executive Order 14192 This rule is subject to E.O. 14192, Unleashing Prosperity Through Deregulation. This proposed rule, if finalized, is not anticipated to be an E.O. 14192 regulatory action because it imposes no more than de minimis costs. See discussion in the “Expected Impact of the Rule” section of this preamble. VII. Regulatory Flexibility Act This proposed rule, if finalized, may have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601-612. However, an Initial Regulatory Flexibility Analysis (IRFA) has been performed and is as follows: 1. Reasons for the Action Executive Order (E.O.) 14275, Restoring Common Sense to Federal Procurement, directs the elimination of excessive acquisition regulations to stop the inefficient use of American taxpayer dollars. The E.O. directs the first comprehensive end-to-end overhaul of the FAR in its 40-year history. The E.O. establishes the policy that the FAR should “contain only provisions that are required by statute or that are otherwise necessary to support simplicity and usability, strengthen the efficacy of the procurement system, or protect economic or national security interests.” In response to E.O. 14275, the Office of Management and Budget issued memorandum M-25-26, Overhauling the Federal Acquisition Regulation. The Memo directed the FAR Council to complete a “revolutionary overhaul” of the FAR. Therefore, the FAR Council is issuing twelve proposed rules that will collectively streamline the entire FAR. 2. Objectives of, and Legal Basis for, the Rule The revolutionary FAR overhaul (RFO) rewrite represents a paradigm shift in federal acquisition. It emphasizes streamlining, clarity, and accessibility, while ensuring that the regulation focuses only on statutory mandates and foundational procurement principles. The RFO is designed to streamline compliance for contracting professionals, improve acquisition speed and agility, and reinforce mission outcomes over process formalities. The basis for the RFO is E.O. 14275, Restoring Common Sense to Federal Procurement. The authority for promulgation of the FAR is 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113. 3. Description of and an Estimate of the Number of Small Entities to Which the Rule Will Apply All small entities who want to contract with the Federal Government will have to familiarize themselves with the reorganized, streamlined, and revised FAR, including the content of this rulemaking. As of January 2026, there are 401,196 entities registered in the System for Award Management (SAM) that were small for at least one NAICS code they had selected. a. FAR Part 1 FAR part 1 focuses on the Government's internal processes. The proposed revisions remove redundant or unnecessary content which results in making the regulations easier to navigate and understand for small entities. Additionally, the changes proposed in FAR part 1 do not place any new direct requirements on contractors. b. FAR Part 4 The changes proposed by this rule to FAR part 4 impact all entities that do business with the Federal Government. These changes are expected to have a positive economic impact on a substantial number of small entities. Particularly the streamlining of the SAM registration will impact the 401,196 entities registered in SAM that were small for at least one NAICS code they had selected, which accounts for 70 percent of the total active entities registered in SAM. c. FAR Part 33 The changes proposed by this rule to FAR part 33 help to more clearly describe the purpose of protests for both Government and contractors, encourage more disclosure of information for agency protests, and overall streamline the regulatory text related to GAO protest procedures. The impact on small entities is expected to be positive, specifically the enhancements to the agency-level protest process that allows for more information sharing and resolution in a swifter and less costly protest forum. d. FAR Part 39 i. PNT Services. The changes proposed by this rule provide guidance to Government acquisition personnel on PNT services. The proposed rule does not represent any novel requirements but consolidates disparate standards into easier to follow guides for the acquisition community. Clearer Federal customer PNT needs will help providers proactively adjust their products and services, contributing to the policy's goal of increased national resilience. Because PNT services are used in virtually all product or service classes, it is not feasible to isolate them to specific North American Industry Classification System or Product Service Codes. Therefore, based on data obtained from SAM Contract Awards Management for fiscal years 2022 through 2024, it is estimated on average approximately 114,159 unique entities were awarded contracts each year, of which approximately 75,013 were unique small entities. ii. NICE Framework. This rule proposes to enhance cybersecurity by incorporating the NICE Framework lexicon and taxonomy into contracts for information technology and cybersecurity services This rule will enable agencies to evaluate whether personnel have the necessary knowledge and skills to perform the tasks specified in the contract, consistent with the NICE Framework. This rule requires contractors to understand the NICE Framework, change internal operating procedures to reflect the new taxonomy, and ensure contract deliverables submitted to the Government are consistent with the NICE Framework. Based on data obtained from SAM Contract Awards Management for fiscal years 2021 through 2023, it is estimated on average approximately 16,658 unique entities were awarded contracts each year, for cybersecurity and information technology services (based on Product and Service Code beginning with “D”), of which approximately 64% (10,691) are unique small entities. e. FAR Part 40 The changes proposed by this rule to FAR part 40 impact all entities that do business with the Federal Government. The proposed revisions to FAR part 40 merge and consolidate regulations found in multiple subparts throughout the FAR into a single, logically organized part. The requirements of various security prohibitions and exclusions have been relocated from FAR parts 4 and 25 into FAR part 40. The proposed changes simplify requirements making them easier to navigate and understand for small entities. This rule authorizes agencies to take agency specific exclusion actions called covered procurement actions. The specific exclusion actions allowed by the statute are defined in this rule as part of the definition of covered procurement action. The rule also incorporates requirements for protecting controlled unclassified information. f. FAR Part 53 The changes proposed by this rule, to relocate the content from the existing FAR part 53 to a new FAR subpart 1.6, impact all entities that do business with the Federal Government. For more details, refer to paragraph 3.a of this IRFA section. 4. Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements of the Rule a. FAR Part 1 This proposed rule does not contain any new reporting, recordkeeping or other compliance requirements. The reporting requirement established by FAR 52.201-1, Acquisition 360: Voluntary Survey is proposed to be removed from the FAR. The voluntary use of this form is now located in the FAR companion guide. FAR 52.253-1, Computer Generated Forms is being relocated from FAR part 53 to FAR part 1 without change. There are no new provisions or clauses. b. FAR Part 4 This proposed rule does not contain any new reporting, recordkeeping or other compliance requirements under FAR part 4. The rule proposes to streamline compliance under the clauses at FAR 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards; 52.204-14, Service Contract Reporting Requirements; and 52.204-15, Service Contract Reporting Requirements for Indefinite-Delivery Contracts, by excluding applicability to contracts for commercial acquisitions. This rule also proposes to remove the FAR part 4 provisions and clauses as described in the table under paragraph 4.e of this IRFA. c. FAR Parts 33 and 53 FAR parts 33 and 53 do not contain any new reporting, recordkeeping, or other compliance requirements. d. FAR Part 39 This rule proposes to require contractors to understand the NICE Framework, change internal operating procedures to reflect the new taxonomy, and ensure contract deliverables submitted to the Government are consistent with the NICE Framework. e. FAR Part 40 Existing reporting, recordkeeping, and compliance requirements from FAR parts 4, 25, and 40 are proposed for consolidation in FAR part 40 as described in the following table: Existing reporting, recordkeeping, and compliance requirements moving and consolidating under FAR part 40: Under provision at FAR 52.240-2, Security Prohibitions and Exclusions—Representations and Certifications 52.204-24, Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment. 52.204-26, Covered Telecommunications Equipment or Services—Representation. 52.204-29, Federal Acquisition Supply Chain Security Act Orders—Representation and Disclosures. 52.225-20, Prohibition on Conducting Restricted Business Operations in Sudan—Certification, and 52.225-25, Prohibition on Contracting with Entities Engaging in Certain Activities or Transactions Relating to Iran—Representation and Certifications. Under clause at FAR 52.240-3, Security Prohibitions and Exclusion 52.204-23, Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab Covered Entities. 52.204-25, Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment. 52.204-27, Prohibition on a ByteDance Covered Application. 52.204-28, Federal Acquisition Supply Chain Security Act Orders—Federal Supply Schedules, Governmentwide Acquisition Contracts, and Multi-Agency Contracts. 52.204-30, Federal Acquisition Supply Chain Security Act Orders—Prohibition. 52.225-13 Restrictions on Certain Foreign Purchases. 52.240-1 Prohibition on Unmanned Aircraft Systems Manufactured or Assembled by American Security Drone Act—Covered Foreign Entities. FAR 52.240-4, Classified Information 52.204-2, Security Requirements. 52.240-5, Covered Federal Information 52.204-21, Basic Safeguarding of Covered Contractor Information Systems. The proposed provision 52.240-2, Security Prohibitions and Exclusions—Representations and Certifications and clause 52.240-3, Security Prohibitions and Exclusion also authorize agencies to take an agency specific exclusion action called covered procurement actions. The specific exclusion actions allowed by the statute are defined in this rule as part of the definition of covered procurement action. Additionally, this proposed rule, if finalized, would add a new provision at 52.240-6, Notice of Controlled Unclassified Information Requirements, and a new clause at 52.240-7, Controlled Unclassified Information. The provision and clause are prescribed at FAR 40.304-6(a) and 40.304-6(b). This proposed rule introduces a new standard form (SF) to support uniformity in Governmentwide implementation of these policies. It identifies roles and responsibilities for agencies and contractors when controlled unclassified information is located on Federal information systems within a Federal facility or resides on or transits through contractor information systems or within contractor facilities, and it adds a new clause and a provision to enable contractor reporting and compliance responsibilities in Federal solicitations and contracts. 5. Relevant Federal Rules Which May Duplicate, Overlap, or Conflict With the Rule The proposed rule, if finalized, would not duplicate, overlap, or conflict with other Federal rules. 6. Description of Any Significant Alternatives to the Rule Which Accomplish the Stated Objectives of Applicable Statutes, and Which Minimize Any Significant Economic Impact of the Rule on Small Entities There are no significant alternatives that would minimize the impact of the rule on small entities. The Regulatory Secretariat Division has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat Division. The FAR Council invites comments from small business concerns and other interested parties on the expected impact of this proposed rule on small entities. The FAR Council will also consider comments from small entities concerning the existing regulations in subparts affected by the rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite “5 U.S.C. 610 (FAR Case 2026-001)” in correspondence. VIII. Paperwork Reduction Act This rule includes information collections under the Paperwork Reduction Act (44 U.S.C. 3501-3521). Following are the specific collections associated with each FAR part in this rule as previously approved by OMB followed by how each collection would be affected by the proposed rule. If a FAR part is not listed below, then there are no information collections associated with the part. Part 1 OMB Control No. 9000-0204, Acquisition 360 Voluntary Survey. The changes under this proposed rule, if finalized, would not affect the information collection or the paperwork burden previously approved by OMB. The collection would remain unchanged. Part 4 OMB Control Nos. 9000-0177, Reporting Executive Compensation and First-tier Subcontract Awards; and 9000-0189, Certain Federal Acquisition Regulation Part 4 Requirements: FAR Sections Affected: 52.204-3, 52.204-6, 52.204-7, 52.204-12 thru 52.204-18, 52.204-20, 52.204-23, 52.212-1(j), 52.212-3(b), and 52.212-3(l). The changes under this proposed rule, if finalized, would revise these information collections and the paperwork burden previously approved by OMB. The public reporting burden for these collections of information will be consolidated under OMB Control No. 9000-0189 with the new title “Federal Acquisition Regulation Part 4 Requirements” and OMB Control No. 9000-0177 will be discontinued. Additionally, the public reporting burden for OMB Control No. 9000-0189 will be revised to exclude commercial acquisitions from the information collection requirements under the clauses at FAR 52.204-10, 52.204-14, and 52.204-15 as described in section II. of this preamble. The revised annual reporting burden is estimated as follows: Respondents: 66,575. Total Annual Responses: 271,227. Total Burden Hours: 393,994. Part 33 OMB Control No. 9000-0035, Claims and Appeals. The changes under this proposed rule, if finalized, would not affect the information collection or the paperwork burden previously approved by OMB. The collection would remain unchanged. Part 40 OMB Control No(s). 9000-0189 for the FAR 52.204-23 information collection; 9000-0199, Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment—FAR sections affected: 52.204-26; 52.204-24; and 52.204-25; and 9000-0205, Implementation of Federal Acquisition Supply Chain Security Act (FASCSA) Orders—FAR Sections Affected: 52.204-29, 52.204-30. The changes under this proposed rule, if finalized, would revise these information collections and the paperwork burden previously approved by OMB. The public reporting burden for these collections of information will be consolidated under OMB Control No. 9000-0199 with the new title “Federal Acquisition Regulation Part 40 Requirements” and OMB Control No. 9000-0205 will be discontinued. Additionally, the public reporting burden for OMB Control No. 9000-0199 will be revised to add to the information collection burden to implement Section 203 in the Federal Acquisition Supply Chain Security Act of 2018, which is the title II of the “Strengthening and Enhancing Cyber-capabilities by Utilizing Risk Exposure Technology Act” (SECURE Technology Act), (Pub. L. 115-390); and E.O. 13556, Controlled Unclassified Information, that established the CUI Program and NARA's final rule at 81 FR 63324 on September 14, 2016, to implement the CUI requirements of E.O. 13556. The revised annual burden is estimated as follows: Respondents: 920,779. Total Annual Responses: 946,075. Total Burden Hours: 1,910,833. C. Comments Regarding Paperwork Burden The FAR Council will publish a separate first notice in accordance with the Paperwork Reduction Act seeking comments on the changes to these collections of information. IX. Severability If any portion ( e.g., section, clause, sentence) of this rule is held to be invalid or unenforceable facially, or as applied to any entity or circumstance, it shall be severable from the remainder of this rule, and shall not affect the remainder thereof, or its application to entities not similarly situated or to other dissimilar circumstances. The various portions of this rule are independent and serve distinct purposes. Even if one aspect were rendered invalid, the other benefits of the rule would still be applicable. List of Subjects in 48 CFR Parts 1, 2, 4, 33, 39, 40, 52, and 53 Government procurement. William F. Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. Therefore, OFPP, DoD, GSA, and NASA propose amending 48 CFR parts 1, 2, 4, 33, 39, 40, 52, and 53 as set forth below: 1. Revise parts 1, 2, 4, 33, 39, and 40 to read as follows: PART 1—FEDERAL ACQUISITION REGULATIONS SYSTEM Sec. 1.000 Scope of part. Subpart 1.1—Framework 1.101 Framework. 1.102 Guiding principles for the System. 1.103 Authority. 1.104 Publication and code arrangement. 1.105 OMB approval under the Paperwork Reduction Act. 1.106 Certifications. 1.107 FAR conventions. 1.108 Statutory acquisition-related dollar thresholds-adjustment for inflation. 1.109 Regulatory sunset. 1.110 Positive law codification. 1.111 Publication for public comment. Subpart 1.2—Agency Acquisition Regulations 1.201 Policy. Subpart 1.3—Deviations from the FAR 1.300 Scope of subpart. 1.301 Definition. 1.302 Policy. 1.303 Individual deviations. 1.304 Class deviations. 1.305 Deviations pertaining to treaties and executive agreements. Subpart 1.4—Career Development, Contracting Authority, and Responsibilities 1.401 Contracting functions. 1.402 Contracting officers. 1.402-1 Authority. 1.402-2 Responsibilities. 1.403 Selecting, appointing, and terminating the appointment for contracting officers. 1.403-1 General. 1.403-2 Appointment. 1.403-3 Termination. 1.404 Contracting officer's representative. 1.405 Ratification of unauthorized commitments. Subpart 1.5—Determination and Findings 1.500 Scope of subpart. 1.501 General. 1.502 Class determination and findings. 1.503 Content. 1.504 Replacement and modification. Subpart 1.6—Forms 1.601 Definition. 1.602 Policy. 1.603 Computer generation. 1.604 Recommendations concerning forms. 1.605 Contract clause. Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113. 1.000 Scope of part. This part describes the framework and guiding principles for the Federal Acquisition Regulations System (the System). Subpart 1.1—Framework 1.101 Framework. (a) The System is a collection of acquisition regulations and guidance, and consists of the following: (1) The Federal Acquisition Regulation (FAR), which is a single acquisition regulation applicable to all acquisitions, and all executive agencies. The FAR is issued as Chapter 1 of title 48 of the Code of Federal Regulations (CFR). (2) Agency acquisition regulations that implement or supplement the FAR (see 48 CFR chapters 2 through 99). (3) FAR companion guide, which contains nonregulatory guidance and best practices (available at https://www.acquisition.gov/far-companion ). (b) The System does not include internal guidance supplementing agency acquisition regulations described in 1.201(c). 1.102 Guiding principles for the System. (a) The System will— (1) Meet an agency's mission efficiently and effectively first; (2) Ensure the most effective use of taxpayer dollars in ways that recognize the value of time, encourage innovation, promote merit, attract domestic sources' participation, satisfy the customer, and balance these interests and objectives; (3) Maximize buying commercial products or commercial services rather than requiring Government-unique solutions; (4) Award contracts to contractors who demonstrate a superior ability to perform; (5) Promote competition and fair opportunity [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2026-12559. Public record. Not legal advice.