Federal Acquisition Regulation FAR

The Federal Acquisition Regulation took effect on April 1, 1984, replacing separate rulebooks used by the military and civilian agencies. It is maintained by the FAR Council, made up of officials from the Defense Department, the General Services Administration, and NASA, under the Office of Federal Procurement Policy in the Office of Management and Budget. Many agencies add their own supplements, the largest being the Defense Department's.

The FAR covers every step of a purchase, from planning and market research to competition, contract types, small business preferences, labor standards, payment, and disputes. It carries out the Competition in Contracting Act of 1984, which requires full and open competition unless an exception applies, and dozens of other laws. Contracting officers, the only officials who can legally commit the government to a contract, apply its rules, and they can be personally responsible for following them.

Over four decades the FAR grew to about 2,000 pages, and buyers and sellers alike complained that it slowed purchases and discouraged new companies from bidding. An April 2025 executive order launched the Revolutionary FAR Overhaul, which aimed to cut the rules to what the law requires. By the end of 2025 the FAR Council had issued rewritten versions of every part for agencies to adopt, with formal rulemaking expected in 2026. Supporters say the overhaul will speed buying, while critics worry that removing rules will weaken protections against waste and favoritism.