FAR Overhaul: Part 8 Revisions - Mixed Bag or Threat to Small Business Contracting Opportunities?

     The “Revolutionary FAR Overhaul” is well underway with the FAR Council having published model revisions for over twenty parts of the Federal Acquisition Regulations (FAR).  For government contractors not familiar with the Overhaul, the federal government is in the process of making major updates to the Federal Acquisition Regulation (FAR).  Instead of rewriting all of the FAR at once, the FAR Council is releasing “model deviations” for different parts of the FAR on a rolling basis.  Agencies are instructed to adopt the model deviations for the time-being under individual or class deviations.  Once the FAR Council has issued model deviations for all of the parts under FAR it will begin to officially revise the entire regulation and its official revision will be informed by the model deviations, public feedback, and agency input.

     The stated goal of the Overhaul is to streamline regulations and improve efficiency in government contracting.  But so far (pun intended), the Overhaul has been a mixed bag.  For example, the model revision for Part 33 (covering contract terminations) leaves the old regulations largely intact with few changes.  In other model deviations, the updates appear to do little more than shuffle FAR provisions to other regulations or shorten the language without making meaningful changes.  Meanwhile, other  revisions like the model deviations to FAR Parts 8 and 12 may have real and perhaps harmful effects — especially for small business government contractors.  In this GovCon Bulletin,™ we'll highlight some of the model deviation changes to Part 8. 

Current FAR Part 8 Rules

     Under the existing FAR Part 8, federal agencies must try to obtain supplies or services from mandatory sources, including:

• Inventories they already have
• Other agencies
• Federal prison production

     After exhausting mandatory sources agencies can turn to prioritized contract vehicles like:

• Federal Supply Schedules
• Governmentwide Acquisition Contracts (GWACs)
• Multi-agency contracts
• Blanket Purchase Agreements (BPAs) used by multiple agencies

     If unable to source supplies or services from mandatory sources or under priority contract vehicles, agencies can turn to commercial vendors in the open market.

Model Deviation Highlights

     The model deviation issued on August 14, 2025, makes several key changes:

• The ordering procedures under the Federal Supply Schedules are moved out of FAR Subpart 8.4 and into the GSA Acquisition Manual under Subpart 538.71.

• Agencies are instructed to obtain commercial products and commercial services under existing governmentwide contracts or BPA's when they aren’t available from mandatory sources.

• Agencies must use contracts designated by OFFP as “Best in Class” (BIC) , unless the head of contracting provides an exception; if no BIC contracts offer the required products or services, agencies should try to use other governmentwide contracts before turning to open-market options.

Why This Matters for Small Businesses

     If implemented permanently, the model deviation changes could have a serious impact on small business government contractors, since most of them likely do not hold BIC contracts — a status that is currently limited to contracts labeled Tier Three under the government’s Category Management system.  Although it is true that agencies are free to procure outside of BIC contracts when requirements cannot be met, there is already an assortment of BIC governmentwide contracts  covering a variety of products and services (e.g., GSA's Global Supply Program, FSSI Building and Maintenance Operations).  So even having a GSA Schedule contract may no longer be enough as agencies are pushed toward using BIC contracts.  As a result, small businesses could see fewer opportunities unless they are able to compete for and secure space on these larger, governmentwide contract vehicles. 

What Small Businesses Should Be Doing Now

     Small business contractors should aggressively scour GSA and agency websites and resources for any BIC contracting opportunities that are currently open or that may open up in the near future.  They should also stay alert to any new guidance OFFP issues on how governmentwide contracts might be designated BIC in the future.  Lastly, small business contractors can also submit their feedback to the FAR Council on the FAR 8 model deviation by October 14, 2025.

     The Amadeo Law Firm will continue to cover the FAR Overhaul in upcoming articles, webinars or video blogs.