The Department of War has launched a major overhaul of federal acquisition rules, issuing the first phase of class deviations under its Revolutionary FAR Overhaul (RFO) initiative on February 10, 2026, while simultaneously seeking industry input for Phase 2 of the ambitious reform effort.
This sweeping initiative aims to fundamentally transform how the federal government conducts procurement by rewriting the Federal Acquisition Regulation (FAR) in plain language and eliminating most non-statutory rules that have accumulated over decades. The Principal Director of Defense Pricing, Contracting, and Acquisition Policy recently posted the first tranche of RFO Phase 1 class deviations, marking a significant milestone in the implementation.
Two-Phase Approach to Procurement Reform
What makes this overhaul different from previous attempts at acquisition reform? The RFO employs an unusually aggressive two-phase strategy. Phase 1 involves the immediate implementation of changes through class deviations issued by agencies within 30 days of model text publication, followed by formal rulemaking in Phase 2 — essentially deploying changes first and codifying them later.
“The Principal Director, Defense Pricing, Contracting, and Acquisition Policy, recently posted the first tranche of RFO Phase 1 class deviations,” stated the Department in its letter to industry stakeholders, signaling that the changes are already being put into motion.
The Department of Defense has already issued multiple class deviations, including 2026-O0002 for Part 205, 2026-O0017 Revision 1 for Part 206, 2026-O0034 for Part 243, and 2026-O0035 for Part 246, with associated line-out documents dating from December 2025 to January 2026.
Cross-Agency Implementation Underway
It’s not just the DoD making moves. Multiple agencies have begun issuing their own deviations to adopt the overhauled FAR parts. The Department of Energy issued PF 2026-01 Class Deviation to adopt RFO Part 17 on Special Contracting Methods, which became effective on November 3, 2025.
Similarly, other major procurement agencies including EPA, NASA, and VA have issued deviations for overhauled FAR Parts such as Part 1 (May 2, 2025) and Part 11 (June 18, 2025), demonstrating a coordinated government-wide approach.
The Principal Director of Defense Pricing, Contracting, and Acquisition Policy has the authority to issue these class deviations from FAR and DFARS when necessary, a power being fully utilized in this transformation.
Restoring “Common Sense” to Procurement
Behind the bureaucratic language lies an ambitious goal: restoring what officials call “common sense” to federal procurement. By rewriting the FAR in plain language and removing most non-statutory rules, the government hopes to achieve faster acquisitions, greater competition, and better results.
But can a regulatory overhaul really deliver these promised improvements? The defense industrial base and acquisition stakeholders will have their say, as the Department of War is actively soliciting input for Phase 2 of the initiative.
For contractors and procurement specialists who’ve spent careers navigating the labyrinthine FAR, these changes represent both opportunity and adjustment. The deviations issued since late 2025 are already reshaping how business is conducted with the federal government.
As the initiative continues to unfold through 2026, the true test will be whether this Revolutionary FAR Overhaul lives up to its name — truly revolutionizing federal procurement, or simply adding another layer of complexity to an already byzantine system.
