The FAR Is Being Rewritten Right Now. Here's What Small Contractors Need to Know.

If you hold a federal contract or plan to bid on one this year, pay attention.

The Federal Acquisition Regulation — the rulebook for how the government buys everything — is going through the biggest overhaul in decades. The first wave of changes already took effect on February 1, 2026. More are rolling out through June 30.

Here are 4 things you should know right now:

1. Simplified Micro-Purchase and Acquisition Thresholds

New class deviations are raising simplified acquisition thresholds and streamlining micro-purchases. This means faster procurement cycles for smaller contracts — which is good news for small businesses that can move quickly.

If you've been avoiding federal contracting because the process seemed too slow or bureaucratic, this is the change to watch. Agencies are being pushed to make awards faster on contracts under the new thresholds.

2. SAM.gov Is Absorbing FPDS

The Federal Procurement Data System (FPDS) is being retired later in FY2026. All contracting data will live in SAM.gov. If you're currently using FPDS to research agencies, competitors, or award history — start transitioning your workflow to SAM.gov now.

The data will still be there. The interface will be different. Getting familiar with SAM.gov's reporting tools now puts you ahead of contractors who wait until FPDS goes dark.

3. Certifications Still Matter — A Lot

SBA goals for WOSB (5%), HUBZone (3%), and SDVOSB (5%) remain in place. The 8(a) program saw record spending in FY2025. Certifications are not going away — if anything, agencies are under more pressure to hit their set-aside goals, not less.

If you've been eligible for a certification and haven't pursued it, this year is the time. The pipeline of contracts reserved for certified firms is at record levels.

4. Speed Is the New Advantage

With DOGE-related contract terminations and fewer contracting officers on staff, agencies have more money to spend at the end of fiscal quarters and less bandwidth to manage a lengthy source selection process. The contractors who win in 2026 will be the ones who respond fast and respond well.

This means: if you're monitoring SAM.gov manually, you're already behind. Opportunities are being posted and closing faster. A contract posted Monday might have a response deadline by Thursday.

The Bottom Line

The rules are changing, but the money is still flowing. Understand the new thresholds, get your certifications in order, and — most importantly — build a system that catches opportunities before they expire.

TenderSentinel monitors SAM.gov daily and scores every opportunity against your NAICS codes, set-asides, and keywords — so you never miss a relevant contract. Start your free trial →