FAR Overhaul: Key Changes to FAR Part 1 Every Federal Contractor Should Understand
The recently proposed FAR Overhaul of Part 1 marks a pivotal shift in how the Federal Acquisition Regulation communicates its core purpose, structure, and expectations for contractors. These foundational changes affect how businesses interpret regulatory obligations and approach federal contract compliance in a modern acquisition environment.
A review of the current FAR Part 1 and the proposed Overhaul reveals a move toward clarity, consistency, and plain language drafting. This article highlights the most significant differences and outlines how these updates reshape compliance for federal contractors, especially small businesses, gig vendors, and emerging government suppliers.
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The FAR Overhaul of Part 1 starts with Plain Language and Simplified Structure
One of the most striking changes in the FAR Overhaul is its plain language approach. While the original FAR Part 1 featured dense legal text, the Overhaul reorganizes content into clear, concise subsections. Headings are direct, sentences are simplified, and responsibilities are more accessible to non-lawyers.
This change not only improves readability but also supports contractors in interpreting requirements without needing extensive legal training. It reflects a growing emphasis on compliance transparency and contractor self-sufficiency.
Terminology Modernization: The Rise of the “Acquisition Team”
The Overhaul introduces consistent use of modern terminology, particularly the phrase “acquisition team.” This term recognizes that procurement is no longer a top-down, CO-led effort but a collaborative process involving technical experts, legal counsel, and contractors.
By modernizing outdated references like “procurement executive” and focusing on interagency roles, the revised FAR Part 1 aligns with evolving acquisition practices and digital tools. Contractors should expect broader engagement in acquisition planning and decision-making under this model.
Clearer Rule Hierarchy and Interpretation Framework
One of the most important compliance updates is the Overhaul’s clarification of regulatory hierarchy. The revised Part 1 now outlines the relationship between the FAR, statutes, executive orders, and agency supplements (e.g., DFARS, GSAM).
This structural change will help reduce ambiguity when interpreting contract clauses and minimize disputes over conflicting regulatory language. It is especially helpful for businesses operating across agencies or dealing with hybrid procurements.
Focus on Compliance Culture and Best Practices
The new FAR Part 1 doesn’t just codify rules—it introduces language around compliance culture, ethical conduct, and industry best practices. This tone shift signals that federal contractors are expected not only to follow the rules, but also to implement systems and controls that ensure long-term, proactive compliance.
Contractors that demonstrate internal accountability, training programs, and documentation processes may be better positioned in source selections and responsibility determinations.
Practical Implications for Small Businesses and New Entrants
While the FAR Overhaul reduces legal complexity, it also raises the bar for accountability. Small businesses and gig economy vendors now face an environment where noncompliance is easier to detect and harder to excuse.
For firms competing for federal contracts, the Overhaul should prompt a reassessment of compliance documentation, internal checklists, and standard contract terms. Understanding the new language is only the first step—aligning with its principles will be critical moving forward.
Conclusion: Preparing for a New Compliance Landscape
The FAR Overhaul of Part 1 redefines the foundation of federal acquisition by embracing plain language, modern organizational structures, and a proactive compliance ethos. These updates create a more transparent and accessible regulatory environment, but also introduce new expectations for how businesses interact with the federal government.
For legal professionals, contract managers, and small business owners alike, staying ahead of these changes is essential to maintaining eligibility, competitiveness, and regulatory alignment in the evolving acquisition system.
Need Guidance Navigating the FAR Overhaul?
Granfield Legal Services and Federal Contract Compliance Experts provide in-depth compliance support, contract review, and strategic counsel for businesses working with the federal government. With deep experience in both Massachusetts and New Hampshire, we help clients stay ahead of regulatory shifts like the FAR Overhaul.
To discuss how these changes affect your compliance strategy or contract pipeline, contact us to schedule a consultation.
Reach out to Granfield Legal Services today to assist you with your Federal Government Contract Issues
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