Class deviation RFO-2025-29: FAR Class Deviation for FAR Part 29 in Support of Executive Order 14275, Restoring Common Sense to Federal Procurement

RFO-2025-29
July 16, 2025
MEMORANDUM FOR GSA CONTRACTING ACTIVITIES
FROM AND DIGITALLY SIGNED BY: Jeffrey A. Koses, Senior Procurement Executive, Office of Acquisition Policy (MV)
SUBJECT: FAR Class Deviation for FAR Part 29

On this page:

Purpose
Background
Summary of changes
Instructions
Applicability
Authority
Effective date
Point of contact

1. Purpose

This memorandum approves a class deviation to Federal Acquisition Regulation (FAR) part 29 for purposes of implementing the FAR Council’s model deviation to FAR part 29.

2. Background

Executive Order (E.O.) 14275, Restoring Common Sense to Federal Procurement, signed April 15, 2025, mandates a comprehensive review and simplification of the FAR.

The FAR is being updated to:

Eliminate non-statutory language
Remove redundant or obsolete language
Enhance clarity through plain language
Align with the new FAR framework
Preserve essential governmentwide acquisition standards

This project is referred to as the Revolutionary FAR Overhaul (RFO) initiative. This initiative will make the FAR more concise, understandable, and focused on core procurement requirements.

3. Summary of changes

FAR part 29, Taxes, has been updated to be more direct, active, and accessible. The main objective was to rewrite the complex tax requirements in plain language, leading to an approximate 20% reduction in word count.

Statutory requirements retained in the RFO FAR part 29 model deviation include, but are not limited to, the following:

26 U.S.C. § 4041, Imposition of tax
26 U.S.C. § 4053, Exemptions
26 U.S.C. § 4064, Gas guzzler tax
26 U.S.C. § 4221, Certain tax-free sales
26 U.S.C. § 4293 and § 4483, Tax exemptions
26 U.S.C. § 5000C, Imposition of tax on certain foreign procurement
10 U.S.C. § 402, Transportation of humanitarian relief supplies to foreign countries
10 U.S.C. § 404, Foreign disaster assistance
10 U.S.C. § 2557, Domestic emergency assistance
10 U.S.C. § 2561, Humanitarian assistance

Change	Description
Retained	Revisions made to the “Scope of Part” at 29.000 are minor plain language adjustments. The substantive scope of the part remains. Subpart 29.1 - Guidance for resolving tax problems is retained at 29.101; however, contracting officers are now required to request assistance from assigned legal counsel when tax issues arise. It was previously encouraged, but not required, to do so. Subpart 29.2 - Federal Excise Taxes is retained; however contracting officers are now required to request offers on a tax-exclusive basis when the law exempts the Government from federal excise taxes, unless inappropriate for the circumstances. It was previously encouraged, but not required, to do so. Subpart 29.3 - The language governing application of State and Local Taxes has been logically reorganized and renumbered. This restructuring improves the flow of information, making the subpart more intuitive for users. For instance, the specific rules for the North Carolina Sales and Use Tax Act, previously located in a sub-paragraph, have been elevated to a standalone section, increasing their visibility and usability. Subpart 29.4 - Most of the solicitation provisions, contract clauses, and prescriptions are retained, with plain language edits where appropriate, because they are tied to specific tax law. Clauses and provisions retained with plain language adjustments include: 52.229-1, State and Local Taxes. 52.229-2, North Carolina State and Local Sales and Use Tax 52.229-3, Federal, State, and Local Taxes. 52.229-4, Federal, State, and Local Taxes (State and Local Adjustments) 52.229-5, Remains “Reserved” 52.229-6, Taxes-Foreign Fixed-Price Contracts. 52.229-7, Taxes-Fixed-Price Contracts with Foreign Governments 52.229-8, Taxes-Foreign Cost-Reimbursement Contracts. 52.229-9, Taxes-Cost-Reimbursement Contracts with Foreign Governments 52.229-10, State of New Mexico Gross Receipts and Compensating Tax 52.229-11, Tax on Certain Foreign Procurements—Notice and Representation 52.229-12, Tax on Certain Foreign Procurements
Removed	Definitions of North Atlantic Treaty Organization (NATO) Forces, and U.S. Forces in Afghanistan have been removed. Information in Section 29.304, Matters requiring special consideration has been removed or relocated, as appropriate. Subsection 29.402-4, prescribing tax requirements for foreign contracts in Afghanistan has been removed in its entirety, along with the following clauses prescribed in that section: 52.229-13, Taxes—Foreign Contracts in Afghanistan 52.229-14, Taxes—Foreign Contracts in Afghanistan (North Atlantic Treaty Organization Status of Forces Agreement)

Change

Description

Retained

Revisions made to the “Scope of Part” at 29.000 are minor plain language adjustments. The substantive scope of the part remains.
Subpart 29.1 - Guidance for resolving tax problems is retained at 29.101; however, contracting officers are now required to request assistance from assigned legal counsel when tax issues arise. It was previously encouraged, but not required, to do so.
Subpart 29.2 - Federal Excise Taxes is retained; however contracting officers are now required to request offers on a tax-exclusive basis when the law exempts the Government from federal excise taxes, unless inappropriate for the circumstances. It was previously encouraged, but not required, to do so.
Subpart 29.3 - The language governing application of State and Local Taxes has been logically reorganized and renumbered. This restructuring improves the flow of information, making the subpart more intuitive for users. For instance, the specific rules for the North Carolina Sales and Use Tax Act, previously located in a sub-paragraph, have been elevated to a standalone section, increasing their visibility and usability.
Subpart 29.4 - Most of the solicitation provisions, contract clauses, and prescriptions are retained, with plain language edits where appropriate, because they are tied to specific tax law.
Clauses and provisions retained with plain language adjustments include:
- 52.229-1, State and Local Taxes.
- 52.229-2, North Carolina State and Local Sales and Use Tax
- 52.229-3, Federal, State, and Local Taxes.
- 52.229-4, Federal, State, and Local Taxes (State and Local Adjustments)
- 52.229-5, Remains “Reserved”
- 52.229-6, Taxes-Foreign Fixed-Price Contracts.
- 52.229-7, Taxes-Fixed-Price Contracts with Foreign Governments
- 52.229-8, Taxes-Foreign Cost-Reimbursement Contracts.
- 52.229-9, Taxes-Cost-Reimbursement Contracts with Foreign Governments
- 52.229-10, State of New Mexico Gross Receipts and Compensating Tax
- 52.229-11, Tax on Certain Foreign Procurements—Notice and Representation
- 52.229-12, Tax on Certain Foreign Procurements

Removed

Definitions of North Atlantic Treaty Organization (NATO) Forces, and U.S. Forces in Afghanistan have been removed.
Information in Section 29.304, Matters requiring special consideration has been removed or relocated, as appropriate.
Subsection 29.402-4, prescribing tax requirements for foreign contracts in Afghanistan has been removed in its entirety, along with the following clauses prescribed in that section:
- 52.229-13, Taxes—Foreign Contracts in Afghanistan
- 52.229-14, Taxes—Foreign Contracts in Afghanistan (North Atlantic Treaty Organization Status of Forces Agreement)

This table is not an exhaustive list.

4. Instructions

The GSA acquisition workforce must follow the RFO part 29 and corresponding 52 model deviation text instead of FAR part 29 and 52 as codified at 48 CFR Chapter 1. The Council’s RFO part 29 model deviation text is available at Acquisition.gov/far- overhaul, and is incorporated into this class deviation.
When using any provisions or clauses that have been revised, utilize the RFO model deviation language at RFO FAR part 52.
Do not include any of the removed provisions or clauses in future solicitations and contracts.
For open solicitations or awarded contracts, the contracting officer has discretion regarding the need to enforce or amend the provisions or clauses. Note that without some of the removed provisions or clauses, the contracting officer may be required to separately address certain aspects in the contract.
Review templates and related standard operating procedures to remove unnecessary process steps.

5. Applicability

This class deviation applies to all GSA procurements.

6. Authority

This class deviation is issued under the authority of EO 14275, OMB Memo M-25-26 [PDF], 48 CFR 1.4, and RFO FAR 1.304.

7. Effective date

This class deviation is effective immediately and remains in effect until rescinded or incorporated into the FAR.

8. Point of contact

Try asking GSAi first (upload the new RFO language and GSA’s implementing deviation, then ask your question. Please note, GSAi is accessible to GSA employees only.). If you still need clarification, email the GSA Acquisition Policy Division at GSARPolicy@gsa.gov.