# FAR Council Proposes Second FAR Overhaul Rules

The Federal Acquisition Regulatory (FAR) Council released a second set of four proposed rule changes on September 18, 2026, as part of its Revolutionary FAR Overhaul (RFO) initiative. These proposals target key FAR parts including source selection (Part 15), contract types, construction, data rights, and commercial products and services (Part 12). The changes aim to increase contracting officer discretion, streamline acquisition processes, and align FAR data rights with the Defense Federal Acquisition Regulation Supplement (DFARS). Comments on these proposals are due by October 19, 2026, requiring government agencies and contractors to review and prepare for potential impacts on bidding strategies, contract performance, and compliance requirements.

- **Why this matters:** The proposed rules could significantly alter procurement practices by enhancing negotiation flexibility and limiting lowest-price technically acceptable procurements for certain services, affecting proposal development and evaluation.
- Contracting officers may gain broader discretion, which can accelerate acquisitions but also increase variability and potential protest risks based on judgment calls.
- Contractors should assess how reorganized subcontracting rules and strengthened emphasis on commercial items affect their solicitation responses and contract administration.
- Timely submission of comments by October 19, 2026, is critical for stakeholders wishing to influence the final rulemaking and adapt their acquisition strategies accordingly.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 25, 2026

### Government Entities
- Federal Acquisition Regulatory Council (FAR Council)
- General Services Administration (GSA)

### Key Quotes
> Greater discretion can produce faster, more innovative acquisitions—but it can also introduce inconsistency, reduce predictability, and shift the locus of protest disputes from bright-line regulatory compliance to the reasonableness of individual judgment calls.
> — Cara A. Wulf, Partner

### Sources
- [FAR Council releases second round of FAR overhaul proposed rules | Nixon Peabody Government Contracts Alert | Nixon Peabody LLP](https://www.nixonpeabody.com/insights/alerts/2026/09/25/far-council-releases-second-round-of-far-overhaul-proposed-rules) - Nixon Peabody
- [Comments Due for FAR's Second Batch of Proposed Rules Due 19 Octo](https://natlawreview.com/article/5-far-overhaul-changes-government-contractors-should-watch) - The National Law Review