FAR Overhaul Enters Formal Rulemaking: Your Comment Window Closes July 23, 2026

The Revolutionary FAR Overhaul just became formal rulemaking, with four proposed rules covering 20 parts of the FAR open for public comment through July 23, 2026. A second deadline the next day affects contractors with active federal contracts. Here is what is in the rules and what to do before both dates pass.

Category: GovCon News · 8 min read · Published 2026-07-06

The Revolutionary FAR Overhaul just moved from talk to text. On June 23, 2026, the FAR Council, made up of the Office of Federal Procurement Policy (OFPP), the Department of Defense, the General Services Administration, and NASA, published four proposed rules in the Federal Register that would rewrite 20 parts of the Federal Acquisition Regulation. This is the formal rulemaking phase of Executive Order 14275, "Restoring Common Sense to Federal Procurement," and it comes with a hard deadline. Public comments on all four rules are due July 23, 2026.

If you have been following the FAR overhaul since it started rolling out in February, this is the moment where the changes stop being agency guidance and start becoming binding regulation, subject to public input you can actually submit. And if you missed the earlier coverage, here is what matters most this week: two deadlines, one on July 23 and one on July 24, both of which require action from small business contractors right now, not next quarter.

What the Four Proposed Rules Actually Cover

The FAR Council split the overhaul into four separate rulemakings, each with its own FAR case number, and each open for comment through the same July 23 window.

FAR Case 2026-001 covers Parts 1, 2, 4, 33, 39, 40, and 53, the foundational administrative sections of the FAR along with protests, information technology, and contract closeout paperwork. This rule creates a sunset process for FAR provisions, consolidates procurement forms onto a single website, and simplifies definitions used throughout the regulation.

FAR Case 2026-002 covers Parts 6, 7, 10, 18, 26, 37, and 41, the parts governing competition, acquisition planning, market research, and emergency procurement. This is the rule small businesses should read most closely. It significantly expands sole source approval authority, allowing DoD, NASA, and Coast Guard contracting officers to approve sole source awards up to

FAR Case 2026-005 covers Parts 5, 24, and 29, which govern how the government publicizes contract opportunities. The threshold for mandatory public announcement of a contract action rises from $4.5 million to $5.5 million, meaning fewer mid-size opportunities will trigger automatic public notice. Small business set-asides and the Rule of Two remain intact under this proposal. Contracting officers must still identify the type of set-aside in the synopsis and solicitation, and must use standard classification codes on SAM.gov to describe the work.

FAR Case 2026-007 covers Parts 3 and 49, addressing procurement integrity and contract termination. This rule adopts a risk-based approach to termination audits rather than auditing every terminated contract the same way, and it shortens the deadlines for settling termination costs, which should mean faster closeout and faster final payment when a contract ends early.

Why the Sole Source Change Deserves a Second Look

Of the four rules, the change most likely to affect small business competitors is buried in FAR Case 2026-002: raising sole source approval authority for DoD, NASA, and the Coast Guard to

For a small business that competes on price and past performance in full and open competitions, this is worth watching. It does not eliminate competition requirements or small business set-asides, but it does give contracting officers more room to bypass competition on larger dollar awards than before. If you track opportunities in a NAICS code where sole source justifications have been common, this rule is the one to comment on directly.

The DEI Clause Deadline Is Riding Alongside This One

Separate from the four proposed rules but landing in the same window, the FAR Council's implementation of Executive Order 14398 continues to move forward. FAR clause 52.222-90, "Addressing DEI Discrimination by Federal Contractors," has been required in new solicitations and contracts above the micro-purchase threshold since April 27, 2026. The next deadline applies to contracts you already hold. Agencies are directed to modify existing contracts to add this clause by July 24, 2026, one day after the FAR overhaul comment period closes.

Guidance to contracting officers directs them to make every effort to secure a bilateral modification, meaning your signature is requested rather than imposed unilaterally in most cases. But the guidance also notes that if a contractor declines to sign, the contracting officer is instructed to consider whether the contract still meets the agency's needs, up to and including termination for convenience. The clause requires contractors to certify they are not engaged in racially discriminatory DEI activities and to provide records and access on request. The FAR Council is still awaiting OMB clearance under the Paperwork Reduction Act for some of the associated reporting requirements, so the full information collection burden may be phased in, but the clause itself and its certification requirement are already being pushed into active contracts.

If you hold existing federal contracts and have not yet seen a modification proposing this clause, expect one before the end of July. Read it before you sign, and if your existing compliance policies need review against the certification language, do that now rather than during a modification negotiation.

What to Do Right Now

Read the four proposed rules that apply to your contract types, starting with FAR Case 2026-002 if you compete in NAICS codes affected by sole source authority or acquisition planning changes. All four are posted on federalregister.gov and open for comment at regulations.gov.

Submit a comment if any provision affects how you compete. Comments should cite the specific FAR case number, include your name and company name, and be submitted through the Federal eRulemaking portal at regulations.gov before July 23, 2026. You can comment as an individual, as a company, or through an industry association, and comments are posted publicly, so trade associations you belong to may already be drafting comments you can support or build on.

Watch for a contract modification proposing FAR 52.222-90 if you hold active federal contracts. Review your internal DEI-related policies against the clause language before a modification arrives so you are not making certification decisions under time pressure.

Check whether your active or pipeline opportunities cross the new $5.5 million public announcement threshold or the

Update your proposal templates and compliance checklists if they still reference the old service contract definitions under Part 37 or the prior sole source thresholds under Part 6. Templates built before June 2026 may cite provisions that are actively being rewritten.

How ProposalApp Helps You Track This

Regulatory windows like this one are easy to miss when you are focused on active pursuits, which is exactly when a missed comment deadline or an unsigned contract modification becomes a problem. ProposalApp's Find Opportunities page lets you search by NAICS code and contract type, so you can quickly identify which of your active pipeline opportunities sit in the size ranges affected by the new sole source and public notice thresholds.

When a solicitation or contract modification lands in ProposalApp, the Proposal Assistant reads the document and flags contract clauses, including new or unusual ones like FAR 52.222-90, so you are not relying on manually scanning modification language to catch a clause you have not seen before. For contractors managing multiple active awards, this matters most when modifications arrive close together, as they are likely to in the next few weeks.

ProposalApp's capability profile and past performance tools also help you build the documentation trail that matters more, not less, as contracting officers get broader discretion under the overhauled FAR. Clear, well-organized past performance records and compliance documentation give you a stronger position whether you are responding to a solicitation, negotiating a modification, or defending a proposal decision after award.

Sources

- [Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 1, 2, 4, 33, 39, 40, and 53 | Federal Register](https://www.federalregister.gov/documents/2026/06/23/2026-12559/federal-acquisition-regulation-revolutionary-federal-acquisition-regulation-overhaul-parts-1-2-4-33)
- [Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 6, 7, 10, 18, 26, 37, and 41 | Federal Register](https://www.federalregister.gov/documents/2026/06/23/2026-12560/federal-acquisition-regulation-revolutionary-federal-acquisition-regulation-overhaul-parts-6-7-10-18)
- [Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 5, 24, and 29 | Federal Register](https://www.federalregister.gov/documents/2026/06/23/2026-12561/federal-acquisition-regulation-revolutionary-federal-acquisition-regulation-overhaul-parts-5-24-and)
- [Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 3 and 49 | Federal Register](https://www.federalregister.gov/documents/2026/06/23/2026-12562/federal-acquisition-regulation-revolutionary-federal-acquisition-regulation-overhaul-parts-3-and-49)
- [OMB Releases Four Proposed Rules as Part of the Revolutionary FAR Overhaul | SBA Office of Advocacy](https://advocacy.sba.gov/2026/06/25/newly-released-federal-acquisition-regulation-proposed-rules/)
- [Revolutionary FAR Overhaul | Acquisition.gov](https://www.acquisition.gov/far-overhaul)
- [Understanding FAR 52.222-90, Addressing DEI Discrimination by Federal Contractors | The Contractor's Perspective](https://www.contractorsperspective.com/compliance/understanding-far-52-222-90-addressing-dei-discrimination-by-federal-contractors-federal-agencies-incorporating-new-dei-clause-into-government-contracts/)
- [New DEI order for contractors is already being enforced as a legal challenge unfolds | Federal News Network](https://federalnewsnetwork.com/contracting/2026/05/even-as-a-legal-challenge-unfolds-a-new-dei-order-for-federal-contractors-is-already-being-enforced/)
- [FAR Overhaul Updates for Parts 9, 12, 22 and 52, Implementation of E.O. 14398, Addressing DEI Discrimination by Federal Contractors | Acquisition.gov](https://www.acquisition.gov/content/far-overhaul-updates-parts-9-12-22-and-52-implementation-e.o.-14398-addressing-dei-discrimination-federal-contractors)