Counsel Commentary: Managing Risk Under the New FAR Sunset Provision

Earlier this year, the Trump administration launched a sweeping initiative to revamp the Federal Acquisition Regulation (FAR) with the issuance of Executive Order 14275, “Restoring Common Sense to Federal Procurement.” This effort, referred to as the “revolutionary FAR overhaul” by the Office of Management and Budget (OMB), seeks to drastically reduce the number of acquisition regulations. 

The FAR overhaul process is currently ongoing (as of July 30, 2025). A key objective of the overhaul is to remove many of the “non-statutory” regulations, but it is unclear which regulations will be included in the final amended FAR. However, any non-statutory regulations included will automatically expire after four years under the overhauled FAR’s new “regulatory sunset” provision. This will establish a relatively short, built-in lifespan for any regulations not grounded in a statutory requirement. 

In his monthly Contract Management Magazine column, “Managing Risk Under the New FAR Sunset Provision,” Rogers Joseph O’Donnell shareholder Stephen L. Bacon analyzes the foundation of the new sunset provision, along with potential issues that the provision may create. He also provides advice to contractors when working with the new rules. 

“Contractors should proactively identify non-statutory clauses to anticipate which provisions might expire amid a solicitation or contract performance,” Bacon writes. “Agencies will also need to develop clear processes for managing solicitations and contracts that span regulatory transition periods.” 

The piece appears in the magazine’s July issue (subscription required) and is the latest entry in Bacon’s monthly Counsel Commentary column. It is published by the National Contract Management Association and was used with permission.

Read Bacon’s latest Contract Management article here.