How the Federal Acquisition Regulation (FAR) is Amended: Understanding the Process and Implications
Fed Contract Pros is often asked how the Federal Acquisition Regulation (FAR) can be amended. The FAR is the cornerstone of federal procurement, providing the rules and guidelines that govern how executive agencies purchase goods and services. Codified in Title 48 of the Code of Federal Regulations, the FAR has evolved significantly since its initial implementation in 1984. Given the complexity of federal contracting and the necessity for procurement regulations to align with economic conditions, technological advancements, national security concerns, and public policy objectives, amendments to the FAR are both frequent and crucial.
Contractors operating in the federal space must understand how FAR amendments occur, who has the authority to make changes, and what the implications are for compliance and future business opportunities. The process of amending the FAR is structured, methodical, and subject to regulatory oversight, ensuring that changes reflect the best interests of the government, contractors, and taxpayers.
The Structure of the FAR and the Role of the FAR Council
The FAR is not a static document. It is regularly updated by the Federal Acquisition Regulatory Council (FAR Council), a body composed of representatives from three key federal agencies:
The General Services Administration (GSA)
The Department of Defense (DOD)
The National Aeronautics and Space Administration (NASA)
These agencies collaborate to propose, review, and implement changes to the FAR, ensuring that procurement regulations align with evolving governmental and industry needs. The Office of Federal Procurement Policy (OFPP), which operates within the Office of Management and Budget (OMB), also plays a significant role in overseeing regulatory changes and resolving disputes among agencies when proposed amendments raise concerns.
How the FAR Amendment Process Works
Amending the FAR follows a strict regulatory process outlined under the Administrative Procedure Act (APA). The process typically unfolds as follows:
Proposed Rule Publication: When an amendment to the FAR is deemed necessary, the proposed changes are published in the Federal Register, a government publication that provides official notices regarding regulatory and policy changes. This ensures transparency and allows interested parties to review upcoming amendments.
Public Comment Period: Once a proposed rule is published, a period (typically 30 to 60 days) is allocated for public feedback. Contractors, industry groups, legal experts, and advocacy organizations can submit comments, voicing their support, opposition, or recommendations for modifications. This stage is critical in shaping the final rule, as regulators take into account how proposed changes impact businesses, compliance burdens, and government efficiency.
Review and Revision: The FAR Council, along with regulatory bodies such as the Civilian Agency Acquisition Council (CAAC) and the Defense Acquisition Regulations Council (DAR Council), analyzes the public comments and may revise the proposed amendment accordingly. This review ensures that changes are well-informed and do not introduce unintended compliance challenges or inefficiencies.
Final Rule Issuance: After review and potential revisions, the FAR Council issues the final rule, which is again published in the Federal Register. The final rule typically includes an effective date, which specifies when the new regulations take effect. In some cases, there is a grace period to allow contractors and agencies time to adapt.
Implementation and Compliance: Once the rule takes effect, contractors must comply with the updated regulations when entering into new government contracts. While pre-existing contracts are not automatically subject to new FAR amendments, contract modifications, renewals, or extensions may incorporate the revised rules.
Interim Final Rules and Emergency Changes to the FAR
In certain urgent circumstances, agencies may bypass the standard notice-and-comment period by issuing interim final rules. These rules take effect immediately but still allow for public comments after implementation. This approach is typically used in situations involving national security concerns, emergency procurement needs, or legislative mandates requiring immediate action.
For example, when Congress passes new laws that directly impact federal procurement—such as cybersecurity requirements or supply chain restrictions—the FAR Council may implement interim final rules to comply with statutory deadlines while gathering feedback for future refinements.
Congressional Influence on FAR Amendments
Congress plays a pivotal role in shaping the FAR through legislative actions. While the FAR Council and OFPP handle the regulatory process, Congress can mandate changes to the FAR through federal statutes such as:
The National Defense Authorization Act (NDAA) – This annual legislation often includes procurement-related provisions that require changes to the FAR.
The Federal Acquisition Supply Chain Security Act – This law imposed stricter regulations on the procurement of critical technologies and supply chain risk management.
The Preventing Organizational Conflicts of Interest in Federal Acquisition Act (2022) – This law required specific amendments to the FAR to address conflicts of interest in federal contracting.
When Congress mandates an amendment, the FAR Council must implement the changes within a specified timeframe, often 12 to 24 months. However, in some cases, delays occur due to the complexity of rulemaking, interagency coordination challenges, or extensive public comments requiring further modifications.
Timelines and Challenges in Amending the FAR
The length of time required to amend the FAR varies based on the nature and complexity of the change. Some rules are finalized within six months, while others take several years. In cases where statutory deadlines are imposed, delays may still occur due to competing priorities, litigation, or resource constraints within regulatory agencies.
While courts generally do not invalidate rules simply because they are issued late, extreme delays can lead to legal action from industry groups or congressional intervention to expedite the process.
Implications for Government Contractors
Understanding how the FAR is amended is critical for government contractors because regulatory changes can significantly impact:
Compliance requirements – Contractors must adapt to new contract clauses and reporting obligations.
Contract pricing and risk management – FAR amendments may impose cost implications or additional performance risks.
Competitive positioning – Companies that proactively adjust to FAR changes can gain a competitive edge over less-prepared rivals.
To stay ahead, contractors should:
Regularly monitor the Federal Register for proposed amendments.
Participate in the public comment process to advocate for industry interests.
Engage with trade associations and legal experts to interpret new rules and implement necessary compliance measures.
Conclusion
The Federal Acquisition Regulation is a living document that evolves to reflect changes in law, policy, and best practices. Amending the FAR is a structured process that involves multiple stakeholders, including the FAR Council, OFPP, Congress, and public commenters. While the process can be lengthy, understanding how FAR amendments occur allows government contractors to stay compliant and competitive in the federal marketplace. By monitoring proposed changes, engaging in the rulemaking process, and adapting proactively, contractors can mitigate risks and position themselves for success.
Disclaimer
This article is for informational purposes only and does not constitute legal, financial, or regulatory advice. While every effort has been made to ensure accuracy, Fed Contract Pros does not guarantee the completeness or applicability of the information provided. Readers should consult with qualified professionals or official government sources for specific guidance on FAR amendments and compliance.
