Federal Contracting Shifts: FAR Overhaul & EFT Mandate

Tune in to understand two critical shifts impacting all federal contractors: the Federal Acquisition Regulation (FAR) Overhaul and the mandatory Electronic Funds Transfer (EFT) payment deadline. These changes are not optional and will significantly impact how you win contracts, get paid, and maintain compliance.

The FAR Overhaul, driven by Executive Order 14275 and OMB Memo M-25-26, represents the first major rewrite of the Federal Acquisition Regulation in decades. Its primary goal is to simplify the FAR by removing non-statutory procedural language and clarifying existing requirements, making it easier for both contracting officers and businesses to navigate federal rules. A dedicated webpage on Acquisition.gov serves as a central resource for updates, draft texts for FAR Parts 1, 6, 10, 11, and 34, and guidance documents.

Simultaneously, Executive Order 14247 mandates that all federal contractors switch to electronic funds transfer (EFT) methods for payments by September 30, 2025. This means moving away from paper checks to direct deposit, prepaid cards, or other digital payment options, aiming to reduce costs, combat financial fraud and improper payments, and enhance operational efficiency and security.

For small businesses, particularly those pursuing SBA 8(a), women-owned, or disabled veteran small business certifications, these shifts present both compliance risks and opportunities for a competitive edge:

• Compliance Risk: Missing the EFT deadline could lead to delayed payments, and failing to adapt to FAR changes might cause you to lose out on contract awards because your proposals don’t align with updated language or requirements.
• Competitive Edge: The FAR rewrite is meant to make federal contracting simpler, and those who pay attention and adapt quickly will be ready to pivot proposal language and internal processes before their competitors, thereby gaining a competitive advantage.
• Cash Flow Stability: Faster, secure payments via EFT mean less waiting and more predictable revenue, which is critical for firms juggling payroll, subcontractors, and material costs.

In this episode, we'll break down:

• What's changing with the FAR Overhaul and the EFT mandate.
• Why these changes matter for your business, emphasizing compliance and competitive advantages.
• Actionable steps you should take now to prepare, such as:

Don't wait until the last minute! Learn how to ensure cleaner compliance, faster cash flow, and a stronger bid position as you glide into FY2026.