Rewriting the Rules: Inside the Revolutionary FAR Overhaul

Presented by HP

Larry Allen, Associate Administrator for Government-wide Policy at the General Services Administration (GSA), is one of the key architects behind what he calls the “Revolutionary FAR Overhaul.” During his recent appearance on Fed Gov Today with Francis Rose, Allen offers a detailed, behind-the-scenes look at the sweeping effort to modernize the Federal Acquisition Regulation (FAR). His message is clear: this overhaul is not just a regulatory update—it’s a cultural transformation of how federal agencies approach procurement.

A Fast-Moving Effort

Allen begins by expressing pride in how quickly the FAR reform effort is progressing. The team is actively working on updates to more than two-thirds of the FAR, starting with foundational components like acquisition planning and market research. These early priorities reflect the team’s strategy to build a stronger base before tackling more complex issues like commercial item acquisition, small business participation, and services contracting.

He emphasizes that while not every change is earth-shattering, the cumulative effect is revolutionary. Some updates may fly under the radar, but they all contribute to a broader goal: making acquisition more strategic, less transactional, and more mission-aligned.

Culture Change, Not Just Rule Change

A central theme throughout Allen’s interview is the importance of cultural change. He stresses that acquisition should be about more than checking boxes or following outdated rules. Instead, the goal is to reposition the acquisition workforce as business enablers—professionals who help agencies achieve their missions with agility and foresight.Larry Allen Frame 4

Allen acknowledges that cultural shifts are hard. He references past efforts like the "MythBusters" campaign, which aimed to encourage innovation and risk-taking but struggled to gain traction. This time, he says, leadership support is key. Senior leaders must back their acquisition teams when they try new approaches. If someone takes a calculated risk and it doesn’t work perfectly, the message should be one of support—not punishment.

“We need to tell people: if you make an innovative decision, we’ve got your back,” he says. “That’s how you build confidence and change culture.”

Embracing Plain Language

Allen also highlights the importance of plain language in the revised FAR. Over decades, the regulation has accumulated a dense vocabulary of acronyms and legalistic phrasing that often intimidates newcomers and even seasoned professionals. By simplifying the language, Allen hopes to make the FAR more accessible and easier to navigate. This, in turn, will encourage broader participation in federal procurement, particularly from companies that may have been deterred by the complexity of the system.

A Better Life for Contracting Officers

What does the FAR overhaul mean for the day-to-day work of contracting officers? According to Allen, it should make their jobs easier and more empowering. The updated FAR will contain fewer rules—particularly for commercial acquisitions—and will return the government to a default preference for commercial item solutions rather than custom-built ones.

Fewer rules mean simpler processes, which Allen hopes will also attract more competition. If vendors feel that federal procurement is more transparent, flexible, and navigable, they’re more likely to compete—especially small and non-traditional vendors.

Additionally, the overhaul emphasizes the importance of embracing risk. For Allen, this is not about recklessness but about giving contracting officers the tools and authority to make smart, informed decisions that drive better outcomes.

Integration with Broader Reforms

Allen is quick to point out that the FAR overhaul doesn’t happen in isolation. It aligns closely with GSA’s broader acquisition reform initiatives, such as the One-Gov vision and the shift away from the Price Reductions Clause in favor of Transactional Data Reporting (TDR). He notes that TDR has reached critical mass, with enough data now available for contracting officers to make real-time, market-informed decisions.

Under the new framework, vendors will no longer be required to commit to static discounting schemes. Instead, pricing decisions will rely on actual transactional data, giving agencies and vendors more flexibility and reducing administrative overhead. The next step, Allen says, is to apply TDR to complex services—an ambitious but achievable goal.

A Living Document, Built for the Future

When asked whether there will be a clear finish line to the FAR overhaul, Allen says no. The FAR has never been a static document, and it never should be. The world changes, the market evolves, and regulations must adapt accordingly. While the first phase of the overhaul is wrapping up soon, future phases will follow, each shaped by public feedback and real-world implementation.

Already, the GSA has received a substantial number of public comments through Acquisition.gov. Allen encourages anyone with ideas to participate in the formal rulemaking process that will begin in the next phase. And he offers practical advice for those looking to contribute meaningfully: “Don’t just say ‘this is bad.’ Tell us how to make it better. Give us examples.”

Allen reflects on his long career in federal acquisition and the unique opportunity he now has to implement the kinds of changes he’s advocated for years. Sitting inside GSA, he says, allows him to finally put ideas into action—reducing overhead, improving efficiency, and delivering better results for taxpayers.