The Federal Acquisition Regulatory Council — comprising the Office of Federal Procurement Policy (OFPP), the Department of Defense, the General Services Administration, and NASA — has issued a proposed rule revising Federal Acquisition Regulation (FAR) Parts 3 and 49, as part of a sweeping twelve-rule overhaul of the entire FAR.

Published in the Federal Register on June 23, 2026, the proposed rule implements Executive Order 14275, "Restoring Common Sense to Federal Procurement," which directs the elimination of excessive acquisition regulations to reduce wasteful spending of taxpayer dollars.

FAR Part 3 covers improper business practices and personal conflicts of interest in federal contracting, while FAR Part 49 governs the termination of contracts — including termination for convenience and termination for default procedures that apply to federal contractors.

The FAR Council is issuing a total of twelve proposed rules as a package, each addressing different sections of the FAR, with the collective aim of streamlining the regulatory framework governing federal procurement. Taken together, the twelve proposals represent the most significant effort to rewrite the FAR in decades.

Contractors, industry associations, and legal practitioners are expected to review the proposed revisions closely and submit comments during the public comment period.

Source: Federal Register