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FAR Overhaul - IT/Engineer

  • FAR Sections that may impact company's that primarily provide IT/Engineer services:

    • FAR Part 4.19 - Cloud Computing

      • Has been deleted in its entirety.

      • This section has now been moved to FAR Part 40.2.


    • FAR Part 4.20 - Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab

      • Has been deleted in its entirety.

      • This section has now been moved to FAR Part 40.2.


    • FAR Part 4.4 - Safeguarding Classified Information Within Industry

      • Has been deleted in its entirety.

      • This section has now been moved to FAR Part 40.3


  • FAR Part 8 - Required Sources of Supplies and Services

    • Definitions are now consolidated under Section 8.001.


    • Part 8.1 - Excess Personal Property is removed and listed at Federal Management Regulation (FMR, 41 C.F.R. 102‑36)


    • Ordering procedures formerly in FAR Subpart 8.4 are moved out of FAR 8 and into GSAR (General Services Acquisition Regulation)


    • Clause 52.208‑9 (Contractor Use of Mandatory Sources of Supply and Services) is streamlined, with its prescription is now at 8.105‑1(b).


    • Clause 52.208‑10 (Government Supply Sources) (formerly 52.251‑1) is now prescribed at 8.105‑2(c).


    • Clause 52.208‑11 (GSA Fleet and Related Services) is now at 8.105‑3(c).


    • Clause 52.208‑1 through 52.208‑8 are retained but marked reserved.


    • Changes to Part 8 are to be made no later than November 3, 2025.


  • FAR Part 24.301 - Privacy Training

    • Deleted in its entirety. The Government will not continue to reference or enforce a stand‑alone contractor privacy training requirement under Part 24.

    • Instead, the Government will include FAR Part 52.224‑3 (Privacy Training).


  • FAR Part 27.4 - Patents, Data and Copyrights

    • Formal changes have yet to be made to this section, however, context is currently being re-worked. What to look out for:

      • Plans to streamline FAR Part 27.4.

      • Remove redundant and non-statutory detail.

      • FAR Part 27.302 (Policy) and 27.402 (Policy on data and contractor proprietary interests) have been removed

      • Clause removals - FAR Part 52.227-17 and 52.228-18 will either be removed or replaced by more descriptive guidance.

      • Expected revision date, November 3, 2025.


  • Company's should review FAR Part 30 - Cost Accounting Standards Administration to see if applicable

    • FAR Part 30.1 - General

      • Revised to include: Now includes Rules and Regulations

      • Revised to include: Now includes Cost Accounting Standards

    • FAR Part 30.2 - Pre-Solicitation

    • FAR Part 30.3 - Evaluation and Award

    • FAR Part 30.4 - Post-Award

      • Revised to include: Now includes CAS Administration


  • Review to see if FAR Part 31 - Contract Cost Principles and Procedures

    • FAR Part 31.109 has been added - Indirect Cost Rate Certifications


    • Now allows for inclusion of Subcontractor’s cost and Prime Contractor’s indirect expenses in settling subcontractor claims during contract terminations


  • Review to see if FAR Part 34 - Major System Acquisition is listed in contracts. If so, please note the following:

    • FAR Part 34 is for contractors working on complex, high-value projects such as: aerospace, defense, energy systems, infrastructure, and large-scale technology development.


    • FAR Part 34.1 - references use of industrial resources that were developed or expanded with assistance from Title III of the Defense Production Act.


    • This section creates a structured policy for when and how these Title III-developed resources are tested and qualified for use in government contracts.


    • Key Changes include:

      • Government Pays for Testing

      • Triggering the Testing Process - Title III Contractor requests that a resource be approved for use, the contracting officer must review the request and determine: if the resource is relevant to a major system/supply item or if there are enough remaining quantities to justify the cost in testing. If both are yes, the Government must modify the contract to require testing.

      • Clause FAR 52.201 - All contracts with major systems or supply items must now include clause 52.201 (references the use of industrial resources developed under Title III).

      • Replace Clauses 52.234-1 through -4 with new language aligned to revised FAR Part 34.


As a Contractor, these changes may impact your business since you may be required to test and integrate Title III-developed components into your systems. This may ultimately alter timelines and cost/pricing.


  • Review to see if FAR Part 34.2 - Earned Value Management System (EVMS).

    • Key Changes include:

      • Agencies must require an Earned Value Management System (EVMS) in major acquisitions for development.

      • For contracts with EVMS requirements, agencies must require contractor submission of monthly EVMS reports.

      • EVMS requirements apply to subcontractors using the same rules as applied to the prime contractor. Contractors shall align reporting practices with the prime contractor’s system.

      • When a solicitation requires a contractor-proposed EVMS plan, Contractor’s will be asked to submit a plan as part of their proposal. Agencies will determine adequacy of the plan prior to contract award.

      • When an EVMS is required, the agency will conduct an (IBR) Integrated Baseline Review. This is a formal review process where both the agency and the contractor align on the project’s performance baseline.


  • FAR Part 39 - Acquisition of Information and Communication Technology

    • FAR Part 39.105 - Privacy, has been deleted and moved to FAR Part 4.19 - Basic Safeguarding


    • Clause 52.239‑1 has been deleted in its entirety. This clause will no longer be included in solicitations.


  • FAR Part 40 - Information Security and Supply Chain Security

    • Streamlined into 3 parts:

      • 40.1 — Processing Supply Chain Risk Information

      • 40.2 — Security Prohibitions and Exclusions

        • Now includes:

          • Prohibition on hardware/software/services from Kaspersky Lab. Previously listed under subpart 4.20.

          • Prohibition on certain telecom / video surveillance equipment. Previously listed under subpart 4.21.

          • Prohibition on use of TikTok / ByteDance covered apps. Previously listed under subpart 4.22.

          • Provisions under FASCSA. Previously listed under subpart 4.23

          • Prohibitions on certain foreign sources & OFAC / sanctions restrictions. Previously listed under subpart 25/27.

      • 40.3 — Safeguarding Information

        • Now includes:

          • Safeguarding classified information within industry (NISP / facility clearances). Previously listed under subpart 4.4.

          • Basic safeguarding of covered contractor information systems (for Federal Contract Information, FCI). Previously listed under subpart 4.19.

    • Provisions and Clauses that are now consolidated

      • New provision 52.240‑90, Security Prohibitions and Exclusions Representations & Certifications, replaces multiple earlier provisions (e.g. 52.204‑24, 52.204‑26, 52.204‑29, 52.225‑20, 52.225‑25).

      • New clause 52.240‑91, Security Prohibitions and Exclusions, replaces several existing clauses including 52.204‑23, 52.204‑25, 52.204‑27, 52.204‑28, 52.204‑30, 52.225‑13, 52.240‑1.

      • New clause 52.240‑92, Security Requirements, replaces 52.204‑2 (Security Requirements).

      • New clause 52.240‑93, Basic Safeguarding of Covered Contractor Information Systems, replaces 52.204‑21.


  • FAR Part 43 - Contract Modifications

    • FAR Part 43 and its corresponding clauses at FAR Part 52 were updated to streamline, clarify or improve language. The RFO Part 52 model deviation text makes minor revisions to clauses:


    • 52.243-1 Changes-Fixed-Price


    • 52.243-2 Changes-Cost-Reimbursement - clarifies that if a change causes increase or decrease in cost or time or affects other contract terms, the CO shall make an equitable adjustment in:

      • Estimated cost

      • Delivery or completion schedule

      • Fixed fee

      • Other affected terms

      • And then modify the contract accordingly.


    • 52.243-3 Changes-Time- and-Materials or Labor-Hours

      • Expanded list of change types: includes drawings, designs, specifications, method of shipment or packing, place of delivery, amount of Government-furnished property.

      • Explicitly states that changes to hourly rate, ceiling price, delivery schedule, or other terms may be adjusted.

      • Maintains the 30‑day requirement for asserting the right to an adjustment. But adds that if the Contracting Officer deems it justified, a proposal submitted before final payment may be accepted.

      • Retains that failure to agree is a dispute, but clarifies the Contractor must continue performance under the changed contract terms.


    • 52.243-4 Changes

      • Qualifiers such as 20‑day retroactive limitation for oral orders, and the clause preventing adjustment after final payment have been removed.


    • 52.243-5 Changes and Changed Conditions

      • General qualifiers such as“general scope” or “before final payment” have been omitted.


    • 52.243-6 Change Order Accounting

      • No significant changes, clause content—its threshold, accounting obligations, and duration remain the same as the old version.

      • Only change is the deviation date has been added to include RFO version.


    • 52.243-7 Notification of Changes, and their alternates

      • Streamlines formalities for notifying of any changes in dates, elements of notice, etc.


  • FAR Part 44 - Subcontracting Policies and Procedures

    • Streamlined into 4 parts:

      • 44.1 – Reserved

      • 44.2 – Evaluation of Award

        • Previous checklists has been replaced with a more concise list

      • 44.3 - Post-Award

        • Section has been re-organized into 5 new sections to improve clarity (44.301-1, 44.301-2, 44.301-3, 44.301-4, 44.301-5)

      • 44.4 – Subcontracts for Commercial Products and Commercial Services

        • Simplified into 3 sections for clarity


    • Removed:

      • Contractor Purchasing System Reviews (CPSR)

      • Use of "Administrative Contracting Officer (ACO)”

      • Section 44.303 (Extent of Review)

      • Section 44.307 (Reports)


  • FAR Part 46 - Quality Assurance

    • Formal changes have yet to be made to this section, however, context is currently being re-worked. What to look out for:

      • FAR Part 46.105 - “Contractor Responsibilities”, is being deleted and marked as Reserved due to redundancy.

      • All existing clauses will remain.

      • Expected revision date, November 3, 2025.


  • Clauses

    • 52.204-25 - Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment. This Clause has been removed.

    • 52.204-91 - Contractor Identification. New clause.

 
 
 

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