The Federal Acquisition Regulations (FAR) Council has been reviewing and updating its guidance on government procurement in recent months in an effort to streamline rules and procedures following an executive order by the Trump Administration. Contractors must follow these rules to successfully bid for jobs, acquire goods and services, and secure contracts. Fee, Smith & Sharp helps ensure that Texas contractors can adjust accordingly, remain compliant, and resolve disputes that may arise.
FAR Council Continues to Update Procurement Regulations
The most recent changes by the FAR Council target research and development, construction, and contracts. The purpose of this shifting guidance is to make the acquisition process and requirements easier for contractors and ensure that the regulatory language is simplified. Additionally, the changes are also supposed to help promote a greater level of business and stronger relationships between contractors and government entities.
FAR changes come as part of the Trump Administration’s executive order titled Restoring Common Sense to Federal Procurement. This act aims to improve the processes used when buying goods and services and make them more efficient. The executive order dictated that all FAR rules be reviewed, simplified, and improved as needed. The FAR Council was given oversight to make these changes so that acquisitions were fiscally responsible and were not unnecessarily cumbersome.
As the FAR Council has continued to gradually issue revisions, these changes have gone into effect immediately. As such, businesses have had to adapt to new guidance on acquisitions and pivot as necessary to maintain compliance with legal guidance.
FAR Changes to the Research and Development Sector
Research and development departments play a big part in the continued operations and growth of various sectors, from defense to economic growth to health and safety. FAR part 35 governs the processes and protocols associated with research and development activities. The changes to FAR part 35 initially focus on eliminating redundancies and outdated language. It also reduces strict structures and provides individuals in charge of acquisitions with more oversight and discretion to make the process more manageable and conducive to business growth.
Additionally, new sections were added to improve the research and development acquisition process. These changes have also been written in simpler language to improve clarity and understanding of where executing these activities can be improved. Contractors no longer have to follow strict structures regarding statements of work, and now possess greater autonomy regarding their work. There is also a greater emphasis on seeking competency when considering bids.
FAR Changes to the Construction and Architect-Engineer Sector
Construction, architects, and engineers contribute to infrastructure, growth, and safety across the country. Businesses within this sector must comply with the directions in FAR part 36. With the recent changes to FAR part 36, the existing process has been overhauled and reorganized to improve the process for acquisitions. Many policies under this section have been eliminated to bring the guidance up to date with current needs and demands. Some of the processes that were removed include site inspections, the 12 percent rule, timelines regarding construction cost estimates, and more. New sections added apply to pre-solicitation, how awards are evaluated and decided, and how activities are organized after the award has been granted.
FAR Revises Rules Regarding Contracts
Contracts are the foundation of any business relationship, and are integral to ensuring that both parties receive fair treatment, know what their obligations are, and are aware of the consequences of failing to uphold those contracts. When it comes to federal acquisition regulations, FAR part 50 provides governance on how these contracts are supposed to be handled. In regard to changes to FAR part 50, adjustments were made to make the acquisition process clearer and functional. The FAR Council also retained several of the provisions outlined in the Support Anti-Terrorism by Fostering Effective Technologies (SAFETY) Act.
How Recent FAR Changes Affect Contractors in Texas
FAR revisions impact contractors in Texas by opening up greater business opportunities. The overarching goal of these changes is to simplify the various processes so they are easier to operate and secure new business and economic benefits. With streamlined processes in place, contractors can carry out procurement and acquisition activities with increased efficiency. This means that bids can be submitted, reviewed, and granted promptly, and contracts can be better tailored to suit the parties involved. Businesses that work in research and development, as well as construction, now have greater flexibility and control over how they conduct acquisitions and navigate contracts and negotiations.
Potential Challenges with FAR Guidance
FAR guidance specifically governs contracts with the federal government and its agencies. Private contractors on the state level may be obligated to follow Texas’s municipal procurement laws instead. These laws outline the bidding process and requirements for contractors throughout the state. However, there are times when state and federal guidance may be in conflict and create legal issues. As federal guidance changes, state guidance may differ or fail to keep up, causing differences in processes, requirements, and taxes. Discrepancies between the federal and state levels can also increase confusion and run the risk of non-compliance issues with either governing entity. In these situations, it is often in a contractor’s best interests to consult a lawyer.
Consult Fee, Smith & Sharp Today
Fee, Smith & Sharp can provide you with up-to-date guidance on research and development, construction, and contracts. We continually monitor changing guidance from the FAR Council, and counsel our clients accordingly. Our firm can provide insight and answer your questions, as well as help your business take proactive steps and resolve issues. We understand that every business is unique, and these revisions may impact every organization differently.
To fully understand what updated FAR guidance means for your business, it is important to talk with a knowledgeable and skilled lawyer from our team. We help you navigate the implications for your business and streamline your processes. To learn more about how we can help your business, contact us today to schedule a consultation with our team.
