FAR Reform and Fast Tracks: DoD’s Procurement Overhaul Gives Small Innovators a Fighting Chance
By Buck Biblehouse, COTS Journal
The Department of Defense is reshaping how it buys technology—prioritizing speed, flexibility, and innovation. Through sweeping acquisition reforms and targeted updates to the Federal Acquisition Regulation (FAR), the Pentagon is creating real opportunity for small, IP-rich firms that have long struggled to gain traction in a process designed for legacy players.
These aren’t minor procedural adjustments. They represent a structural realignment of how capability is acquired and who gets to compete.
A Default to Speed and Agility
Recent acquisition directives make the Software Acquisition Pathway the standard for programs relying heavily on software. Combined with Commercial Solutions Openings (CSOs), Other Transaction Authorities (OTAs), and expanded simplified acquisition thresholds, the DoD is charting a course toward faster, outcome-focused procurement.
Instead of waiting years for RFP cycles, companies can now propose and prototype solutions within accelerated timelines—sometimes securing contracts in under six months. For emerging firms working in AI, cyber, autonomy, and advanced sensing, these pathways provide direct, viable access to defense markets.
FAR: Leaner, Smarter, More Flexible
Reform efforts extend deeply into the FAR. In line with government-wide acquisition modernization, the FAR Council has been directed to streamline outdated requirements, eliminate policy-driven clutter, and emphasize statutory obligations. FAR Part 6, governing competition, has already been refined to simplify small business set-asides and clarify the framework for full and open competition.
Additionally, agencies have been granted deviation authority to move quickly and adapt contracts to meet operational needs. The focus has shifted from compliance to capability, from regulation to results.
IP-Rich Small Firms Finally Get a Shot
Small businesses holding advanced intellectual property are among the biggest winners in this shift. For decades, rigid FAR clauses and inflexible contract language discouraged participation from the very firms developing cutting-edge technologies.
The revised pathways—particularly CSOs and OTAs—allow for commercial terms, IP protections, and more collaborative engagements. These tools reward innovation and reduce the need for exhaustive compliance infrastructure that many small businesses simply don’t have.
Where legacy processes demanded strict conformance, the new framework invites working solutions and iterative development. Companies can bring forward what they’ve already built, rather than starting from scratch to meet antiquated specs.
A Wake-Up Call to the Defense Industrial Base
The message is clear: the DoD wants what works, and it wants it fast. This is not about lowering standards—it’s about removing barriers that have kept innovative players on the sidelines.
Large primes will still have a role, but they’ll need to adapt. The competitive edge now favors firms that can build quickly, evolve rapidly, and deliver real-world capability with minimal overhead.
The COTS Perspective
At COTS Journal, we’ve long called for broader access to the defense market for commercial technology providers. These recent reforms reflect a growing recognition that the future of defense innovation lies in agility, not bureaucracy.
For small firms with validated technology and valuable IP, the path to DoD relevance has never been more open. The opportunity is here—for those ready to move fast and think forward.