On September 26, 2025, the Office of Management and Budget’s Office of Federal Procurement Policy, in collaboration with the Small Business Administration (SBA), introduced streamlined regulations aimed at increasing small business participation in federal contracting. Recognizing the critical role of small businesses in the U.S. economy, these reforms are designed to reduce administrative burdens and simplify the contracting process, enabling small businesses to compete more effectively for federal contracts. This initiative is part of the Revolutionary Federal Acquisition Regulation (FAR) Overhaul, which seeks to enhance competition and support small and disadvantaged businesses through various measures, including set-asides and improved access to procurement opportunities.

The FAR Overhaul is noted as the most significant reform to the FAR in its 41-year history, eliminating over 1,600 unnecessary requirements that hinder both agencies and contractors. By promoting the use of simplified acquisition procedures and encouraging greater competition in programs like the 8(a) business development initiative, the Office of Federal Procurement Policy aims to ensure small businesses can transition to federal contracting roles more easily. These changes, which include a focus on post-award debriefings and streamlined registration processes, are expected to enhance the competitiveness of small businesses in the federal market.

The initiative also includes strategic guidance to encourage the use of government-wide contracts, potentially increasing awards to small businesses across various socioeconomic categories. Additionally, non-regulatory best practices will be highlighted to further reduce barriers to participation. As the FAR Council moves to the second phase of the RFO, public input will be sought to inform future rulemaking efforts, ensuring that small businesses continue to play a significant role in federal contracting.

Original: article