Capital Edge’s Tip Line #10: FAR Overhaul Update

Capital Edge Tip Line – August 8, 2025

FAR Overhaul Update: FAR Part 31 Main Takeaways – Edition 10

In this week’s Capital Edge Tip Line, CEO Chad Braley dives deeper into the Revolutionary FAR Overhaul (RFO) and what you need to know about the changes to FAR Part 31.

Key Updates from This Week’s Tip Line

FAR Part 31 – What You Need To Know

What’s happening? We've been anticipating updates from the Revolutionary FAR Overhaul (RFO) and are starting to get answers.

What's changed?

• Definitions (31.001): Thirteen were removed, mostly related to standard costing methods for labor, materials, and inventory valuation.
• Advance agreements (31.205-46(5)): Language was strengthened slightly. What used to read as “may be useful” now says Contracting Officers “should consider them”.
• Depreciation & rental costs: All references to FASB ASC 840 were replaced with ASC 842, reflecting current accounting standards.
• Relocation costs (31.205-35): A small but specific change: mortgage title policies are now allowable if tied to acquiring a home in a new location.

What this means for you: This round of FAR updates didn’t eliminate complexity or streamline compliance. It just brought language up to date with current practices. Expect more buying guides, more trickle-down guidance, and if you're in compliance or contracts, plenty of job security.

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