A Wobbly Bike: Some Initial Thoughts on FAR 2.0

In recent months, the revamping of the FAR has been a big topic of discussion for federal contractors and those who work with them. This project is referred to as FAR 2.0 or the Revolutionary FAR Overhaul or simply RFO. An executive order got the ball rolling, setting forth the mandate to create FAR 2.0 within 180 days from April 15, 2025, which puts the deadline as  October 12, 2025.

The GSA has described its goals with the FAR overhaul by using some interesting metaphors. It says the FAR overhaul will be like a renovation of an old apartment building, taking things down to the studs while preserving the structural integrity of the original design. GSA acknowledged the inevitable growing pains for this adaption process using another metaphor—the “wobbly” phase of learning to ride a bike. As noted in the GSA post: “Let’s be honest—there will be an adjustment period, and it might be uncomfortable. This discomfort is normal. In fact, it’s a necessary part of growth. Remember learning to ride a bicycle? The wobbly phase was frustrating but essential to eventually riding with confidence.”

In this post, we’ll take a look at some of the proposed new parts (and missing old parts) that will be present in the proposed FAR revision. The idea behind this overhaul is to get the FAR back to its statutory roots, simplify the procurement process, and make things easier for all participants in the federal acquisition system. Those awaiting this update are, however, understandably anxious about what this means for a process that, while complicated, is familiar to them. We’ll dig into the motivating concepts and functions of the overhaul process itself, and then give some examples of proposed updated language to give readers a sense of what’s to come.

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End of the Bona Fide Place of Business Moratorium

SBA requires that, for 8(a) Program construction contract set-asides, the contractor must have a “a bona fide place of business in the applicable geographic area.” 13 C.F.R. § 124.501. In 2021, SBA suspended the enforcement of this requirement in light of the COVID-19 pandemic. On June 17, 2025, SBA announced that this moratorium is coming to an end. In this post, we’ll look at the rule and what the end of this moratorium means for 8(a) construction contractors.

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Back to Basics: Terminations

The word “termination” in nearly every context elicits concern. And in federal contracting, such concern may often be warranted. Some terminations are no big deal, resulting in a federal contract–or even just part of one–being ended a bit early for convenience of the government. But other terminations, based on alleged default or deemed “for cause,” can have significant negative impacts (especially on small and disadvantaged businesses). So, one thing remains consistent across the board for federal contract terminations: it is crucial to understand the type of termination you are issued, its legal implications, and your rights and options for resolution. This article provides a general overview of terminations. Future posts will dive in deeper to contractor termination rights and options and settlement proposals.

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FAR Council Removes Rule on Small Business Orders

A couple FAR notices have removed proposed SBA rules relating to orders on multiple award contracts. This withdrawal seems to have the affect of decreasing the overall application of the small business Rule of Two, as discussed here. However, it only impacts the application of the rule of two to orders under multiple award contracts that were not restricted to small businesses. So, it’s impact is relatively narrow.

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COFC: Ostensible Subcontractor Rule for General Construction Still Looks at all Circumstances 

As frequent SmallGovCon readers know, the Small Business Administration’s ostensible subcontractor rule can be tricky to navigate. The rule requires contractors not to rely too heavily on a subcontractor in the performance of a contract set aside under an SBA socioeconomic program, but what constitutes relying too heavily can be confusing for small business contractors. Without a clear measure of how reliant is too reliant, businesses have to worry that they may be denied an award or even worse, lose one in a post-award protest. In a recent decision, Daniels Building Company, Inc. v. United States, 24-1787, 175 Fed. Cl. 767 (2025), the Court of Federal Claims (COFC) provided potentially helpful insight into what SBA’s Office of Hearings and Appeals (OHA) and the Court of Federal Claims will consider when determining whether a prime contractor is “unusually reliant” on its subcontractor. 

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Switcheroo – FAR Change Allows Agency to Amend Solicitation to Broaden Eligibility for Procurement 

This past November, we observed a change in the rules regarding SAM registration requirements for procurements. Prior to this rule change, both GAO and the Court of Federal Claims (COFC) had found that the FAR requires offerors to maintain SAM registration throughout the evaluation period for a procurement. With the rule change, FAR 52.204-7 (the regulation at issue) now only requires that an offeror be registered at the time of offer submission and at the time of contract award. A lapse in SAM registration in between those events, in other words, would not be fatal to an offeror’s proposal. Unfortunately for one company, this resulted in a COFC case that essentially reversed its victory at a prior COFC protest. Today, we’ll look at this second case and what happened.

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Help Please: SBA Asking for Input on Mentor-Protege and Joint Venture Issues

SBA has indicated that it will be holding a tribal consultation meeting in June. Among the topics to be discussed will be the 8(a) Program and SBA Mentor-Protege Program and joint ventures. This request is interesting because it reveals a little bit about what the SBA is thinking with regards to the Mentor-Protégé Program and joint venture issues. While it is especially relevant for entity-owned 8(a) Program firms, it is also revealing for other small businesses.

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