Revolutionary FAR Reform: What SBIR/STTR Applicants Need to Know About Federal Procurement Overhaul
- josh84483
- Apr 22
- 3 min read
Updated: Apr 30
April 21, 2025
Executive Summary
President Trump signed an executive order on April 15, 2025, aimed at dramatically reforming the Federal Acquisition Regulation (FAR) system. This order, titled "Restoring Common Sense to Federal Procurement," may have significant implications for small businesses pursuing SBIR/STTR grants and contracts. The reform seeks to remove unnecessary regulations and streamline the procurement process, potentially making it easier for small businesses to work with the federal government.
Key Points of the Executive Order
Formally titled the "Revolutionary FAR Overhaul (RFO)," the order contends that there are several critical issues with the current federal procurement system:
Excessive Complexity: The FAR has expanded to over 2,000 pages of regulations with nearly 3,000 complex and costly directives, creating an "onerous bureaucracy" that makes doing business with the federal government "prohibitively inefficient and costly."
Negative Efficiency Assessments: Recent studies, including the 2024 Senate committee report "Restoring Freedom's Forge" and a 2019 report by the Advisory Panel on Streamlining and Codifying Acquisition Regulations, conclude that the FAR has become "a barrier to, rather than a prudent vehicle for, doing business with the Federal Government."
Need for Reform: With nearly $1 trillion spent annually on federal procurements, the administration believes the current system cannot continue on its present trajectory.
What This Means for Small Businesses
For small businesses interested in SBIR/STTR grants and contracts, this reform could bring several beneficial changes:
Reduced Regulatory Burden: The order directs that the FAR should contain "only provisions required by statute or essential to sound procurement," with unnecessary regulations removed.
More Agile Procurement: The stated policy is to create "the most agile, effective, and efficient procurement system possible," which could reduce barriers to entry for small businesses.
Expanded Industrial Base: The order specifically mentions "allowing for the expansion of the national and defense industrial bases" as a paramount objective.
Timeline for Implementation of FAR Reform
The executive order establishes an ambitious timeline:
Within 15 days: Agencies must designate senior officials to work on FAR reform.
Within 20 days: The Office of Management and Budget must issue implementation guidance.
Within 180 days: The Administrator of the Office of Federal Public Procurement Policy must amend the FAR to contain only necessary provisions.
The order also proposes a regulatory sunset provision, where any FAR provisions not required by statute would expire after 4 years unless renewed.
Implications for SBIR/STTR Applicants
This reform aligns with Executive Order 14192 (January 31, 2025) on "Unleashing Prosperity Through Deregulation" and could have significant positive impacts for small businesses seeking SBIR/STTR funding:
Simplified Application Processes: As agencies streamline their supplemental regulations and rewrite requirements in plain English with helpful buyer guides, SBIR/STTR application requirements may become less burdensome.
Faster Award Decisions: More efficient procurement systems could reduce the time between submission and award.
Broader Participation: Reduced barriers may allow more innovative small businesses to compete for federal R&D funding.
How Akela Consulting Can Help
Akela Consulting is a specialized SBIR/STTR grant writing firm dedicated to helping innovative companies secure non-dilutive funding from federal agencies to bring their technologies to market. Our core expertise lies in crafting compelling grant applications that win awards and unlock crucial development funding for small businesses.
As part of our comprehensive approach, we continuously monitor and adapt to changes in federal procurement regulations—including reforms like this executive order. Our understanding of the SBIR/STTR ecosystem helps us identify how these regulatory shifts affect application requirements and evaluation criteria.
Contact us today to learn how our expert grant writing services can help your business leverage these SBIR/STTR opportunities and navigate the evolving federal funding landscape to commercialize your innovative technology.
This article is for informational purposes only and does not constitute legal advice. For specific guidance on federal procurement regulations, please consult with appropriate legal counsel.
