If you’ve been doing work with the government, you’ve probably heard of FAR, the Federal Acquisition Regulation. It’s the big book of rules that tells agencies how to buy stuff, and tells contractors how to sell it to them. Sounds simple, but it’s not. FAR is long, confusing, and filled with words that make people yawn.
FAR just got a makeover. They’re calling it FAR 2.0, and it’s bringing in a whole new wave of changes. People are calling it the RFO wave, short for Revolutionary FAR Overhaul. If you’re in the world of federal contracting, you really need to know what’s going on. This blog will break it all down in plain language, without the lawyer talk or scary acronyms.
What Is FAR, Anyway?
Let’s start simple. FAR stands for Federal Acquisition Regulation. It’s the rulebook the U.S. government uses when buying goods and services. That can mean anything — food for the Army, computers for a local federal office, software for NASA, or even consulting for climate studies.
Contractors — the folks selling stuff to the government — follow FAR to stay compliant. If you mess it up, you may lose your contract, face penalties, or get blocked from bidding in the future. So yeah, it’s kind of a big deal.
What’s New in FAR 2.0?
FAR 2.0 is not just a tweak. It’s a full refresh. Think of it like upgrading from a flip phone to a smartphone. The goal is to make the rules easier, faster, and more focused on what really matters.
Here are the main changes:
- Principles over paperwork: Agencies can now use judgment, not just checklists. The old FAR was very mechanical. The new version lets people think more.
- Simpler language: The government finally realized that not everyone speaks fluent bureaucracy. FAR 2.0 uses simpler words and fewer confusing sentences.
- Speed is the focus: Procurement has always been slow. FAR 2.0 is trying to fix that. Agencies can move faster, especially with smaller buys.
- Flexible rules for tech: Technology changes fast, and the old rules couldn’t keep up. FAR 2.0 makes it easier to buy software, AI tools, and cloud services.
What Is the RFO Wave?
RFO stands for Revolutionary FAR Overhaul. It’s not an official name, but that’s what contractors are calling this big shift. The government realized the old FAR wasn’t built for 2025. It was slow, rigid, and full of outdated ideas. So they decided to clean house.
The RFO wave is bigger than just changing rules. It’s changing how people think about contracting.
- There’s more focus on outcomes, not just deliverables.
- Agencies can choose vendors based on real-world impact, not just who filled out the form best.
- Contractors are being pushed to show value, not just offer a low price.
What Should Contractors Do Right Now?
Alright, so FAR 2.0 is here. What should you do? Don’t panic. Just follow these steps:
1. Read the updates
I know — reading FAR isn’t fun. But skim through the changes. Look at the parts that affect your work. Ask someone who knows this stuff to explain if needed.
2. Get your team ready
If you have a team writing proposals or handling compliance, bring them into the loop. Make sure they know the new rules. One mistake can cost you a contract.
3. Talk to contracting officers
Government buyers are also learning. Don’t be afraid to ask questions. Build relationships. Clarity helps everyone.
4. Update your proposal templates
A lot of companies reuse the same old proposal formats. That might not work anymore. Refresh your approach. Show how your work creates impact, not just how cheap it is.
5. Don’t chase every opportunity
With rules changing, now is a good time to focus. Go after projects where you can really shine. Don’t throw spaghetti at the wall.
How Is This Helping Small Businesses?
FAR 2.0 could be a huge win for small businesses. Here’s why:
- Less paperwork means fewer barriers.
- Agencies can focus on innovation, not just size.
- Small companies that offer smart solutions can finally compete with big players.
- Socio-economic certifications (like 8a, HUBZone, SDVOSB) still matter, and maybe more than ever.
What’s the Catch?
The new rules give more flexibility, but that also means less predictability. Contractors might see decisions that feel unclear or rushed. Some proposals may be judged based on soft factors like “potential impact” or “innovation,” which aren’t always easy to define.
Also, the changes aren’t finished. FAR 2.0 is a living update. New tweaks are coming, and people might not agree on how to apply them. That means more gray areas and more judgment calls.
GovCon Digest’s Take
FAR 2.0 isn’t perfect. It’s not magic. But it’s trying to fix a system that was slowing everyone down. Contractors should welcome the changes, but also be smart about how they adapt.
The RFO wave might feel like a storm at first. But if you ride it right, it could take you far.
