FAR Overhaul Proposes Changes to Late Submissions, Commercial Items
The second set of proposed rules in the comprehensive Federal Acquisition Regulation overhaul would grant contracting officers discretion to accept late proposals and clarifies key commercial-item and R&D contracting procedures.
The FAR Council has released the second major batch of proposed rules in its comprehensive "Revolutionary FAR Overhaul" (RFO), advancing a significant modernization of federal procurement regulations. The new rules, issued September 18 with comments due October 19, propose material changes across 16 FAR parts that will affect most government contractors. Among the most impactful proposals is a revision to the strict “late is late” rule in FAR Part 15, which would grant contracting officers discretion to accept proposals submitted after a deadline if deemed to be in the government’s best interest. Other key changes include clarifying commercial item acquisition procedures for construction, mandating small business set-asides below the simplified acquisition threshold, reverting to the traditional “reasonable likelihood” standard for exercising options, and explicitly authorizing consumption-based pricing models. Counsel for federal contractors should review the proposals closely to assess their impact on bidding strategies and contract administration and consider submitting comments before the short deadline.