The FAR Overhaul: What Small Businesses Need to Know in 2026

The FAR overhaul affects every small business that sells to federal agencies. The FAR overhaul page tracks each change. The Federal Acquisition Regulation (FAR) is the rulebook for almost every federal purchase. Under Executive Order 14275, signed in April 2025, the FAR Council is rewriting it in plain language and removing requirements that are not required by statute. The project is called the Revolutionary FAR Overhaul, or RFO.

Most small businesses will not read the new FAR. But the changes affect how agencies buy, how much they can buy without a formal competition, and how you find and win work.

What has already changed

• The micro-purchase threshold rose from $10,000 to $15,000 on October 1, 2025. Agencies can buy below it with a government purchase card, without formal competition. See our guide to micro-purchases.
• The simplified acquisition threshold rose from $250,000 to $350,000, which widens the range of purchases made with simpler, faster procedures.
• Many agencies have adopted rewritten FAR parts, including Part 19 on small business, through class deviations. These take effect as soon as an agency issues them.

What has not changed

Small business set-asides and the “rule of two” remain in place. If a contracting officer expects offers from two or more capable small businesses at a fair price, the work should still be set aside for small business. SAM.gov registration, NAICS codes and size standards are still how eligibility is decided.

What is still coming

The FAR Council is publishing formal rules in stages. On September 18, 2026 it released a second set of proposed rules covering commercial buying, simplified acquisition, negotiated procurements, the Federal Supply Schedules, construction, bonds, contract types and multiple-award contracts. Comments are due October 19, 2026.

What each small business should do about the FAR overhaul

• Keep your SAM.gov registration active and your NAICS codes accurate.
• Update your DSBS profile and capability statement so buyers using simplified procedures can find you quickly.
• Watch for sources sought notices and RFIs, which help agencies decide whether to set work aside.
• Ask us which class deviations apply to the agencies you sell to.

GERC helps small businesses with SAM.gov registration, capability statements and proposal writing.

Need help? Call (909) 454-7076 or book a consultation.