Key takeaways
- Proposed Part 12 would require commercial buys above the micro-purchase threshold, including BPA orders, to be set aside for small businesses when the Rule of Two is met.
- Proposed Part 8 puts OFPP required-use vehicles first, then best-in-class and other governmentwide vehicles such as the FSS and GWACs, before a new contract.
- Usage-billed services such as SaaS, cloud and AI could be bought at standard commercial pricing as fixed-price units.
- Eight of 12 FAR cases are now proposed. Check your vehicles, size status and pricing before final rules arrive.
The Revolutionary FAR Overhaul is now in formal rulemaking. The FAR Council published its first four proposed rules on June 23, 2026, and four more on September 18, covering 16 additional parts of the FAR and their Part 52 clauses. Comments on the September rules closed October 19.
That puts eight of the 12 planned FAR cases out as proposed rules, with four still to come. The plan is to propose every part, take industry feedback and then issue final rules, and no dates for final rules have been announced. These are proposals and can still change, but they show where federal buying is headed. Three changes matter most for companies that sell commercial products and services.
More commercial buys set aside for small business
Under proposed Part 12, commercial acquisitions above the micro-purchase threshold, including orders under blanket purchase agreements (BPAs), must be set aside for small businesses when the Rule of Two is met. That's the test of whether a contracting officer expects offers from at least two capable small businesses at a fair price. A contracting officer who decides not to set aside has to document why.
Wiley's analysis quotes the proposed text, FAR 12.103(b): "all acquisitions above the micro-purchase threshold must be set aside if required by FAR 19.104-1."
What it means for you:
- Small businesses: more commercial work, including BPA orders, could be reserved for you. Make sure your registrations and NAICS codes match what you actually sell. Our SBA size standards guide explains how size is measured.
- Large businesses: some buys you compete for today could move into set-asides. Look at which federal deals came in above the micro-purchase threshold, and whether small-business partners or resellers could carry them.
Agencies check existing vehicles first
Proposed Part 8 sets an order of sources once mandatory sources can't meet a need. First comes any governmentwide "required use" contract or BPA designated by the Office of Federal Procurement Policy (OFPP). Next are "best-in-class" contracts and BPAs, which become an option rather than a mandate. Then come other governmentwide vehicles, such as the Federal Supply Schedule (FSS) and governmentwide acquisition contracts (GWACs), before an agency creates a new contract. Under proposed FAR 8.104, exceptions need approval from the head of the contracting activity.
Faegre Drinker's read is that a required-use designation will likely matter more and best-in-class status less. If you aren't on a vehicle the agency already uses, a new standalone contract gets harder to justify. Track which vehicles get required-use status and whether your products are on them, directly or through a partner. Our list of federal contract vehicles is a good place to start.
Usage-based services as fixed-price units
Proposed Part 16 makes fixed-price contracts the default and requires a written justification for other types. It also carries out Section 1825 of the FY2026 National Defense Authorization Act on consumption-based solutions. Usage-billed services such as SaaS, cloud and AI could be offered at standard commercial pricing as fixed-price units and treated as firm-fixed-price contracts, with billing based on actual use of those units.
If you sell per seat, per transaction or per gigabyte, write your units down clearly now: what one unit is, what it costs, and how usage is measured and reported. Contracting officers will need that to write a solicitation under the new rules.
Other changes in the commercial rewrite
- Simplified procedures for commercial acquisitions would apply up to $9 million, or $15 million for certain emergencies and major disasters.
- The omnibus commercial clause (FAR 52.212-5) and the commercial representations provision (52.212-3) would go away. Each clause's own prescription would decide whether it applies, and agencies would generally need a deviation to add a clause that isn't prescribed for commercial buys.
- A combined synopsis and solicitation would become the default for acquisitions expected to exceed $20,000.
- Contracting officers could accept a late proposal if it serves the government's interest and won't unduly delay award. That's at their discretion, so keep treating deadlines as firm.
What to do before the final rules
- Check your vehicles. List every federal vehicle you hold or sell through, and note which agencies use each one.
- Confirm your size status. Check your size under each NAICS code you bid. If you're a large business, line up small-business partners for work that may be set aside.
- Test your pricing model. If you bill by usage, define fixed-price units a contracting officer could buy.
- Talk to buyers early. Ask program and contracting staff how they plan to buy next year and which vehicles they use. Our federal procurement forecasts page can help you see what agencies plan to buy.
Keep those conversations low-pressure. Many buyers are still learning the new rules too, and a short, useful question gets a better reply than a pitch. If the timing isn't right, note it and check back later.
How KSG helps
Kensington Sales Group's B2G lead generation team helps federal sellers find the agencies and contract vehicles that fit their products, then sets qualified meetings with program and contracting staff. For Verizon, that meant 22 federal leads in a single quarter.
Sources: Faegre Drinker, Third Quarter 2026 Government Contracts Policy and Regulatory Review (November 2026); Nixon Peabody, FAR Council Releases Second Round of FAR Overhaul Proposed Rules (September 25, 2026); Wiley, FAR Council Issues Second Round of FAR Overhaul Proposed Rules; Womble Bond Dickinson, RFO Round Two: Proposed FAR Changes Could Reshape Commercial Buying and Negotiations; Sheppard Mullin, Revolutionary FAR Overhaul Update: Second Batch of Proposed Rules Released.