The FAR Overhaul Enters Phase 2: The Comment Window Just Closed — Here’s What’s Changing and What’s Next for Small Business

Published 2026 | TIKC NewsWire

On June 23, 2026, the FAR Council published the first four proposed rules of Phase 2 of the Revolutionary FAR Overhaul (RFO) — permanent rewrites of roughly 20 FAR parts, implementing Executive Order 14275. The public comment window on that first batch closed July 23, 2026. Phase 1 used temporary class deviations to test streamlined FAR text; Phase 2 is the formal notice-and-comment rulemaking that makes those changes permanent.

What Phase 2 Actually Does

It converts much of the Phase 1 deviation framework into permanent regulation — but in several places the proposals refine, consolidate, and materially change the earlier deviation language. The first package covers four FAR cases and about 20 parts plus related FAR Part 52 clauses.

Two Changes Worth Your Attention

• A five-year regulatory sunset (new FAR 1.109). For the first time, the FAR builds in a sunset: non-statutory provisions and clauses can be set to expire, and the Council will periodically ask the public which non-statutory rules should lapse. The rulebook gets lighter over time — but you’ll need to track which clauses actually survive.
• A SAM / entity-registration overhaul (FAR Part 4). The Council proposes to restructure how entity information is collected from offerors and maintained in SAM — for most contractors, the most consequential administrative change in the batch, and a favorable one.

What’s Coming for Small Business

The Council plans additional batches covering Parts 8, 12, 13, 15, 16, and 19. Part 19 governs the small business programs, so the set-aside framework itself is on the table in an upcoming round. Watch the new sunset mechanism too — commentators note FAR 1.109 could eventually expose the “Rule of Two” to review.

What to Do Now

Read the proposed text for the parts you live in. If Part 19 matters to your business, be ready to comment the moment that batch drops. And update your internal compliance checklists against the permanent language, not the temporary deviations — because once a final rule takes effect, that text is binding governmentwide. Brick by brick.

FAQ

Are these rules final?

No — they’re proposed. But the compressed comment period signals the Council intends to move quickly, and final rules are widely expected in 2026.

Did I miss my chance to comment?

For the first four rules, the window closed July 23. More batches are coming, each with its own comment period — including the one expected to touch Part 19.

Sources

Wiley Rein LLP. (2026, June 23). FAR Council begins rulemaking to implement FAR overhaul, proposing revisions to 20 FAR parts.

Sheppard Mullin. (2026, June 25). Revolutionary FAR Overhaul update: Rulemaking phase begins.