Navigating FAR 2.0: Stay Agile with Awarded AI

The federal contracting landscape is undergoing a seismic shift. With the announcement of the “Restoring Common Sense to Federal Procurement” Executive Order on April 15, 2025, the Federal Acquisition Regulation (FAR) is set for its most significant overhaul in decades—dubbed “FAR 2.0.” A sprawling 2,000-page regulatory behemoth the FAR has long been criticized for its complexity and cost. This new Executive Order aims to streamline it into a leaner, more business-friendly framework by October 2025—a mere 180 days from now.

This transformation is just one of several recent executive actions promising to reshape how government contractors operate. Orders like “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (January 2025), which eliminated affirmative action requirements and certain nondiscrimination clauses, may ease administrative loads; however, vigilance will still be required to meet remaining legal obligations. Another from April 9, 2025 targets defense acquisitions, calling for program reviews that could lead to cancellations and a “first preference” for commercial solutions.

For businesses aiming to thrive in this dynamic environment, agility is no longer optional—it’s essential.

“FAR 2.0:” What You Need to Know Now

Three Words: Simplicity, Usability, National Security

FAR 2.0 will retain only statutory provisions or those deemed essential for simplicity, usability, or national security. The same is true for those non-statutory provisions up for renewal. Agencies with FAR supplements are not immune. They too must align with the overhaul. Those non-statutory provisions that do survive may expire in four years unless renewed.

The Bottom Line: Government contractors are likely to experience volatility across their existing workflows. Take small businesses, for example: The “Rule of Two” for larger acquisitions could be on the chopping block unless justified. Because the Defense Federal Acquisition Regulation Supplement (DFARS) must align with the overhaul, U.S. Department of Defense (DoD) contractors and subcontractors may see varied implementation across contracts.

Market-Ready, Commercial Products and Services Preferred

Notable in the recent executive orders are the mandates that federal agencies prioritize procurement of commercially available products and services over custom-developed, non-commercial items.

The Bottom Line: While Contracting Officers will have a 60-day window to review all pending contracts for non-commercial items and submit formal waivers justifying any exceptions, this order presents significant opportunity for commercial technology providers. Adoption of proven, market-ready solutions is likely to accelerate, as options that require costly custom development are viewed unfavorably more and more.

What To Remember

• Organizations ready with off-the-shelf solutions are likely to succeed more in the purchasing process as agencies will need to justify non-commercial buys.
• Quicker deployment and lower life-cycle costs are likely to be a net positive for contractors as government buyers are encouraged to leverage industry-standard products.
• Firms already invested in commercial-ready offerings, particularly in AI, cybersecurity, and cloud-techologies are likely to reap benefits in this new landscape.
• Legacy providers relying on government-unique, custom solutions may need to consider how they can realign their market strategies to address this new reality.

FAR 2.0 represents a massive shift that will impact every dollar of the $773 billion federal contract market. The rapid timeline, the drive for commercial preference, and the potential for inconsistent agency interpretations mean contractors must act fast to adapt.

What You Can Do

FAR 2.0 can be seen as a double-edged sword. Streamlined regulations could lower barriers, attract new players, and intensify competition. On the other hand, the uncertainty of expiring provisions, program cancellations, and agency-specific changes poses risks to established contractors. Those who succeed will:

• Stay Informed: Track regulatory updates to anticipate changes in solicitations and contracts and understand what they mean to your business.
• Adapt Quickly: Adjust bidding strategies and compliance processes in real-time as non-statutory provisions face scrutiny or sunset.
• Seize Opportunities: Capitalize on new opportunities, like preference for commercial solutions within the defense sector, before your competitors do.
• Mitigate Risks: Prepare for disruptions, such as contract terminations or stop-work orders, with robust cost documentation and legal strategies.

Manual processes and outdated tools won’t cut it in this fast-moving landscape. That’s where Awarded.AI comes in.

Awarded.AI: Your Key to Staying Nimble

At Procurement Sciences, we understand the challenges of navigating federal procurement’s complexities. That’s why our AI-powered platform is designed to empower government contractors with the agility and insights needed to thrive amidst change. Here’s how Awarded.AI positions you to conquer the FAR 2.0 era:

• Real-Time Market Intelligence: Awarded.AI scans the web, SAM.gov, USAspending, and other procurement-specific sources to deliver instant updates on FAR and DFARS changes, ensuring you’re never caught off guard.
• Opportunity Identification: Awarded.AI identifies solicitations aligned with your capabilities, highlighting opportunities that are a good fit for you before they’re widely known.
• Compliance Simplified: Awarded.AI can flag revised contract clauses and provide actionable guidance to maintain compliance with federal laws, reducing False Claims Act risks.
• Competitive Edge: By optimizing bid analysis, market research, and proposal writing, Awarded.AI frees your team to focus on strategy and differentiators, helping you outpace competitors in a more open market.

In a world where regulatory sunsets and rapid deadlines redefine the game, Awarded.AI is your co-pilot, turning uncertainty into opportunity.

Don’t Get Left Behind

The FAR 2.0 overhaul is a wake-up call for government contractors. Those who embrace agility and leverage tools like Awarded.AI will not only survive but thrive—securing contracts, reducing costs, and outmaneuvering the competition. Those reliant on outdated methods risk falling behind in a $773 billion market that’s evolving at breakneck speed.

Ready to stay nimble in the face of change? Join the Procurement Sciences revolution today. Schedule a demo of Awarded.AI and see how we can transform your federal contracting strategy. Act now—because in the FAR 2.0 era, agility is your greatest asset.

Procurement Sciences: Powering Your Success in Federal Contracting