The Revolutionary Federal Acquisition Regulation (FAR) Overhaul (RFO) of Part 44  was issued in early September.

This revision significantly simplifies regulations and processes, making it easier for small businesses to compete and win subcontracts. To date, twelve agencies have submitted deviations. Three became effective in September and October. The remaining deviations take effect on November 3. Key changes include:

• Updated Definition of “Subcontract” – Incorporates the definition from the revised FAR 2.101related to commercial products and services.
• Established Subpart 44.4 Commercial Products and Services – Retains only essential clauses applicable to commercial subcontracts, improving subcontractor understanding and compliance ability.
• Streamlined Subcontracting Consent Procedures – Reduces the previous 13-point checklist under Clause 52.244-2 to four key criteria based on need, subcontractor qualifications, price and terms and conditions.
• Simplified Consent and Notification Processes – Clarifies contracting officer requirements for subcontracts based on whether the prime contractor has an approved purchasing system.
• Updates Contractor Purchasing System Reviews (CPSR) – Introduces a risk-based approach, timeline and subsequent surveillance requirements.

The streamlined approach offers substantial benefits to contractors and contracting offices by reducing administrative burdens, encouraging increased use of commercial products and services and improving subcontractor engagement.

To date the following agencies have submitted contract deviations to Part 44:

• Department of State (DOS) – Effective Date: November 3, 2025
• Social Security Administration (SSA) – Effective Date: TBD
• Department of Education (ED) – Effective Date: November 3, 2025
• Department of Justice (DOJ) – Effective Date: November 3, 2025
• Securities and Exchange Commission (SEC) – Effective Date: November 3, 2025
• Health and Human Services (HHS) – Effective Date: November 3, 2025
• Consumer Product Safety Commission (CPSC) – Effective Date: October 1, 2025
• Udall Foundation (UDALL) – Effective Date: September 15, 2025
• Nuclear Regulatory Commission (NRC) – Effective Date: November 3, 2025
• Commodity Futures Trading Commission (CFTC) – Effective Date: November 3, 2025
• United States Department of Agriculture (USDA) – Effective Date: November 3, 2025
• General Services Administration (GSA) – Effective Date: November 3, 2025

Takeaways for Small Businesses:

It is imperative for firms seeking subcontracting opportunities to remain up to date on all RFO changes and the associated deviations. A clear understanding of ongoing revisions and consistent communication with current and future prime contractors will position firms for a higher win ratio.