FAR Part 8, which covers required sources of supplies and services, outlines how agencies must prioritize their purchases, and GSA Schedule ordering procedures just got a major overhaul that’s reshaping how federal agencies source products and services. The FAR Council’s model deviation for FAR Part 8 is intended to drive acquisition efficiency in support of the President’s Executive Order on procurement consolidation. The EO makes clear that agencies need to buy common goods and services in the most efficient and effective manner possible for the American taxpayer to save money and eliminate waste.

The revisions modernize the acquisition process, streamline sourcing priorities, clarify the order of precedence for supplies and services, and move Federal Supply Schedule (FSS) ordering procedures to the GSAR 538.71. They also strengthen the connection between FAR Part 8 and the GSA Schedules program. By moving FSS ordering procedures to the GSAR, agencies now have clearer, faster guidance when buying through Schedules, while contractors gain a more streamlined path to offer their products and services through GSA’s marketplace. This update reaffirms that GSA Schedules remain one of the government’s most powerful tools for efficient, compliant purchasing.

If an agency is unable to satisfy requirements for supplies and services from the mandatory sources, agencies are encouraged to consider satisfying requirements from or through the non-mandatory sources, including Federal Supply Schedules, Governmentwide acquisition contracts, multi-agency contracts, and any other procurement instruments intended for use by multiple agencies, including blanket purchase agreements (BPAs) under Federal Supply Schedule contracts.

FAR Part 8 Mandatory Sources: Procurement Priorities

At the heart of FAR Part 8 are the mandatory sources that federal agencies must use before considering purchasing on the open market.

For services, the AbilityOne Program remains the first stop. If a required service such as custodial, maintenance, or administrative support is on the AbilityOne Procurement List, agencies must purchase it through an authorized AbilityOne nonprofit agency.

For supplies, the order of precedence is clear:

1. Internal agency inventory
2. Excess property from other agencies
3. Federal Prison Industries, UNICOR
4. AbilityOne nonprofit agencies

If the government’s requirements cannot be satisfied through one of the mandatory sources, then they are strongly encouraged to use the highest Tier possible to satisfy their requirements, effectively putting Open Market (SAM.gov) procurements at the bottom of the list.

This makes GSA Federal Supply Schedules a prominent contracting choice and ensures agencies use them as the next preferred and compliant option before turning to the open market.

Category Management Tiers

For years, OMB categorized contracts under three Tiers, however, as of September 2025, the FAR Council established a new class of “required use” contracts. To date, no “Required Contracts” have been named. Contractors can use the Acquisition Gateway’s Solution Finder tool to identify which contracts fall into the different tiers.

The following is a quick description of the four tiers of government contracts. Since contracting officers must use the highest Tier of contract that will satisfy their requirements, it benefits contractors to acquire the contract vehicles listed in the Tiers.

Most GSA contracts fit within Tier 2 or Tier 3 depending on their designation. Best-in-Class contracts like OASIS+, HCaTS, and VETS 2 fall into Tier 3, while most GSA Schedule contracts are in Tier 2 as multi-agency vehicles that multiple agencies can use for consistent, compliant purchasing.

Tier 4: Required-Use Contracts

Tier 4, Required-Use contracts is the only tier that is mandatory to use. Think of Tier 4 as the “no-questions-asked” category. These are contracts that the government mandates usage of. As of the date of this blog post, the government has not designated any contracts as “Required Use”, but they will soon, so stay alert for news of these new designations.

For contractors, getting on a Required-Use vehicle will be like reaching the top of the mountain. It’s rare, competitive, and highly valuable.

Tier 3: Best-in-Class (BIC) Solutions

Tier 3 is where strategy meets performance. Best-in-Class (BIC) solutions are governmentwide contracts vetted by OMB for meeting high standards in cost savings, data transparency, and contract management maturity.

Examples include GSA’s OASIS+, HCaTS, and VETS 2 GWACs; some GSA Schedules, as well as NASA SEWP. These contracts are known for efficiency, strong vendor performance, and reduced administrative burden.

For agencies, using a BIC vehicle supports category management goals and helps meet compliance targets. For contractors, being part of a BIC solution increases visibility across the federal market and shows that your company is a reliable, vetted partner.

If your firm is listed on a BIC contract, make sure to highlight it in your capability statements and SBA.gov profiles. It’s a credential that carries real weight with contracting officers.

Tier 2:  Multi-Agency Contracts (MACs)

Tier 2 contracts are multi-agency solutions or government-wide solutions that are not yet identified as Best-in-Class solutions. Most GSA Schedules fall in Tier 2. These contracts encourage collaboration across the government and are managed at the agency level.

Contractors working in this tier often benefit from steady work across multiple agencies. The key here is building relationships and understanding how each participating agency uses the contract so you can tailor your solutions and marketing effectively.

Tier 1:  Single-Agency Contracts

Tier 1 vehicles are managed by a single agency and used only for that agency’s specific mission needs. These are often niche or mission-specific contracts, such as laboratory support at NIH or facility maintenance for Veterans Affairs.

While these contracts don’t offer the same broad reach as higher tiers, they’re crucial for contractors developing deep expertise within an agency. Many contractors start here, earning strong CPARS ratings and building relationships that later help them qualify for BIC or MAC opportunities.

Agencies can rely on Tier 1 contracts when higher-tier options don’t fit mission needs, but they must document justification in their acquisition plan.

Tier 0:  Open-Market Acquisitions

Tier 0 is the last option. These are open-market buys, meaning standalone procurement conducted outside existing contract vehicles. Contracting officers must provide a written justification explaining why no higher-tier option was suitable.

Open-market acquisitions are publicized on SAM.gov and can still offer solid opportunities, especially for small businesses and specialized service providers, but they tend to be unpredictable. They’re often used for urgent needs, unique items, or one-time services that don’t fall under existing contract scopes.

How Contractors Use the Tiered Contract Model

This tiered approach helps the government consolidate spending, reduce redundancy, and ensure accountability in pricing and performance. For contractors, it provides a roadmap for where to focus:

• High-tier contracts (Tiers 3 & 4): Focus on visibility, compliance, and long-term positioning.
• Mid-tier (Tier 2): Build relationships and cross-agency experience.
• Lower-tier (Tier 1 & 0): Capture niche opportunities and build past performance to climb the ladder later.

It’s not about one tier being better than another. It’s about recognizing where your company fits right now and planning your next move strategically.

What The Far 8 Update Means for GSA Schedule Contractors

For GSA Schedule contractors, the FAR Part 8 updates have direct implications for how agencies plan and execute their purchases. With GSA Schedule ordering procedures now under the GSAR, agencies have a clearer mandate to use GSA Schedules as compliant and efficient vehicles if requirements cannot be met under the mandatory sources. This means agencies will rely on GSA Schedules before using open-market buys, making them a must-have contract vehicle for most government contractors.

To stay competitive and visible, GSA Schedule holders should:

• Ensure their contract offerings align with category management goals and reflect updated federal priorities.
• Regularly review pricing, SIN structures, and compliance requirements to remain attractive and fully compliant under GSAR guidance.
• Highlight their GSA Schedule in marketing and proposal materials, especially when agencies seek Tier 2 or Tier 3 contract solutions.
• Explore opportunities to earn Best-in-Class recognition or partner with BIC contract holders to strengthen your market position.

GSA Schedule contractors can reach out to Coley GCS’s and explore our Turnkey GSA Contract Management service. We have supported our clients with guidance through these FAR Part 8  changes to help them better understand how to align their offerings with the revised sourcing framework.

Contractors who have the resources to adapt quickly and position their Schedules as compliant, cost-effective, and easy-to-use solutions will have a strategic advantage as agencies shift toward more structured and transparent acquisition practices.

To help navigate these revisions, GSA has also released additional practitioner resources, including the FAR Part 8 Companion Guide and the FAR Part 8 Practitioner Job Aid, which provide implementation tips and examples for acquisition teams and industry partners.

FAR Part 8 Compliance, Strategy, & What’s Next

For contractors, now is the time to reassess how these updates affect your business model. Review your participation in programs such as AbilityOne and UNICOR, and ensure your placement on Best-in-Class and GSA Schedule. Update compliance systems, refresh internal training, and help your business development teams understand how sourcing priorities have shifted.

Beyond compliance, there’s strategy. These revisions also reinforce the importance of GSA Schedules as a preferred buying channel. By moving GSA Schedule procedures under the GSAR, contracting officers now have a clearer framework for using Schedules as compliant and efficient procurement tools. Contractors with GSA Schedules, GWACs, and IDIQs will gain stronger visibility and can better align their offerings with agency sourcing requirements.

In short, FAR Part 8 modernization reinforces the central role of GSA Schedules, GWACs, and IDIQs in federal acquisition. It isn’t just an administrative change. It’s a shift in how the federal government buys. Agencies that fully embrace it will gain efficiency and transparency, and contractors that align early will lead the next phase of federal procurement success.

How Coley GCS Helps Contractors Navigate FAR Part 8 Revolutionary Changes

Coley GCS provides tailored guidance to help contractors navigate the FAR Part 8 updates with confidence. With over 24 years of experience, our team has helped thousands of companies successfully obtain and manage contracts, including GSA Schedules, GWACs, and IDIQ contracts.  We support clients in aligning their GSA Schedules with category management goals, understanding GSAR changes, and keeping their offerings visible and competitive within the federal acquisition hierarchy. From initial acquisition through modifications and contract management, our experts make the process simple and efficient, helping contractors stay compliant, agile, and well-positioned for long-term success in the federal marketplace.

Ready to get started or need help managing your existing contract? Contact us at hello@coleygsa.com, call 210-402-6766, or book time with our team to talk with a government contracts expert.

If you’re a government contractor looking for business development resources, and exploring ways to grow in the federal market, check out FedMap.us, the #1 growth-focused online community for government contractors.

Note: The content of this article was created with AI assistance. Coley GCS advisors have edited, fact-checked, and taken full responsibility for its publication.