DoD Seeks Contractors' Input On Major Defense FAR Supplement Overhaul

Takeaways

• The Department of Defense is asking defense contractors to recommend substantive changes to the Federal Acquisition Regulations and the Defense FAR Supplement as part of its move beyond earlier class deviations to formal rulemaking. 
• Even if a contractor does not submit suggested revisions, it will have an opportunity to provide comments on proposed regulatory changes.
• Contractors should keep up to date on the changes and ensure policies and procedures remain compliant across existing and future contracts as the regulations evolve.

Related links

• Michael P. Duffey: Letter to Defense Industrial Base and Acquisition Stakeholders Seeking Revolutionary FAR Overhaul Phase 2 Input
• EO 14275, “Restoring Common Sense to Federal Procurement”
• EO 14265, “Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base”
• The Office of Federal Procurement Policy Launches Landmark Update to FAR, Ushering in a New Era for Commercial Buying (press release)
• FAR Sec. 1.402 - Policy

Article

Undersecretary of Defense for Acquisition and Sustainment Michael P. Duffey released a letter to defense industrial base contractors on Feb. 13, 2026, soliciting recommendations for changes to the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) as part of the Trump Administration's Revolutionary FAR Overhaul (RFO).

According to the letter, the effort is guided by Executive Order (EO) 14275, “Restoring Common Sense to Federal Procurement,” establishing that the FAR “should only contain provisions required by statute or essential to sound procurement,” and EO 14265, “Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base.”

Pursuant to the EOs, the Office of Federal Procurement Policy is leading a major revision to the FAR in line with the White House's goal of “returning the FAR to its statutory roots, rewritten in plain language, while removing non-statutory rules when they are not essential to sound procurement.”

During a previous phase of the RFO, the Department of Defense (DoD) implemented a series of class deviations. DoD and other agencies can issue class deviations to make changes to the FAR without engaging in formal rulemaking procedures “when necessary to meet the specific needs and requirements of each agency,” unless precluded by law, executive order, or regulation. FAR §1.402 (48 C.F.R. §1.402). Key changes included elimination of the equal employment opportunity clause and related provisions, provisions related to compensation (e.g., overtime, work hours and safety, and wage rates), and generally moving requirements from the regulations to a “Practitioner's Album” to provide contracting officers broader discretion.

Duffey's letter requests suggestions for regulatory changes to help achieve three objectives:

1. Fielding technology and modernizing systems at a rate that outpaces our adversaries;
2. Increasing production capacity to deliver wartime surge capacity for key capabilities; and
3. Putting the entire defense acquisition system and industrial base on a wartime footing.

Next Steps for Contractors

Federal defense contractors should:

• Assess the effect of the FAR and DFARS class deviations that have already been issued, which may impact compliance, subcontract templates and clauses, training of procurement personnel, product and service development, business development, and other aspects of contract performance.
   
• Consider whether it would be beneficial to suggest a change to the FAR or DFARS.
   
• Unless existing contracts are modified, the regulatory changes will only affect future contracts. Therefore, to ensure contract compliance, contractors should create a process to track the different requirements to which their contracts will be subject.
   
• Once formal Notices of Proposed Rulemaking are issued, evaluate the effect of the changes on their business and consider whether to submit formal comments, either individually or by participating in a broader industry response.
   
• Monitor final rule changes, assess the impact of such changes on existing and future contracts, and ensure policies and procedures conform to the final rules.

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