The official steering the government's rewrite of federal contracting rules no longer holds the job that comes with the authority to do it. Kevin Rhodes stepped down as administrator of the Office of Federal Procurement Policy (OFPP) on Sept. 4, but Federal News Network confirmed that he is now a special government employee (SGE) still leading the Federal Acquisition Regulation overhaul and the update to the cost accounting standards (CAS). For contractors tracking both rewrites, the arrangement keeps the same person in charge while removing the Senate-confirmed title that went with the work.
Rhodes left OFPP after 18 months at the Office of Management and Budget and 11 months after the Senate confirmed him, according to Federal News Network. Multiple sources inside and outside government told the outlet that Rhodes is participating in meetings and leading both efforts under his new title. PilieroMazza highlighted the report in its Oct. 8 weekly update for government contractors.
Why the White House Kept Rhodes on the FAR and CAS Rewrites
A government official familiar with the circumstances, who requested anonymity to discuss OMB's decision, told Federal News Network that Rhodes was asked to stay because the FAR overhaul and the CAS update are priorities for the administration.
"The request was made by the White House to carry these priorities across the finish line," the official said. "This is viewed as a positive thing because it keeps the continuity around these priorities. These are things that need the attention they deserve."
OMB did not return multiple emails from Federal News Network seeking comment on Rhodes' status. The outlet also reported that it is unclear who is serving as acting OFPP administrator.
Sources told Federal News Network that one reason Rhodes stepped away from the administrator role was a desire to work from Florida full time. He had commuted between Washington and Florida for much of the past two years.
What an SGE Can and Cannot Do Without a Senate-Confirmed OFPP Chief
Former federal acquisition officials quoted by Federal News Network described the arrangement as disappointing, highly unusual and somewhat frustrating, while praising Rhodes' record at OFPP. "It's an unusual arrangement for sure," one former official said, noting that SGE status is usually used when a nominee cannot be confirmed or will serve only briefly. "There is now no accountability and much less transparency on what Kevin is doing."
The central issue is authority. The OFPP administrator chairs the FAR Council, and the Senate-confirmed post carries statutory authorities. "SGEs only have the authorities given to them by someone else," the same former official said. Aligning with the OMB deputy director for management could let Rhodes operate in that function, the source added, but he "may not be as effective in negotiating with undersecretaries or deputy secretaries, or even with the GSA or NASA administrator because he isn't a Senate-confirmed leader anymore."
A second former acquisition executive called it a "really odd arrangement" not seen in 30 years of government service. The first source also raised open questions about who now oversees OFPP staff, who hears industry concerns, and who the administration allows to testify on Capitol Hill about the procurement changes. "Is the administration saying OFPP doesn't need to be a Senate-confirmed position anymore with this set up?" the source asked.
The SGE classification also carries a time limit. A special government employee may serve no more than 130 days in any period of 365 consecutive days, Federal News Network noted. The Office of Government Ethics reported that 71 agencies had 33,470 SGEs serve during calendar year 2025, with 95% serving on federal advisory committees, boards and commissions.
Where the Two Rewrites Stand
The two projects Rhodes still leads sit at very different stages. Federal News Network reported that it is unclear whether Rhodes will be around to bring the FAR overhaul completely across the finish line.
The CAS update is much further along. OFPP issued a final rule in July that eliminated 68 of the 72 individual requirements and removed more than 10,000 words of regulatory text. The rule took effect Aug. 7 and, according to Federal News Network, will cut by half the number of vendors required to use the standards. Contractors can now rely on Generally Accepted Accounting Principles for measuring and assigning costs for compensated personal leave, capitalization and depreciation of capital assets, and acquisition costs of material.
The FAR overhaul has further to go. The FAR Council released a second tranche of changes for comment in September, with comments due Oct. 19. The first set of FAR updates came out in June, and the Office of Information and Regulatory Affairs at OMB continues to review and make changes.
Sources told Federal News Network that agency participation is crucial to both efforts, and that losing the Senate-confirmed leader could delay progress. "You have great convening authority as OFPP administrator," the first former official said.
What It Means for Contractors
In the near term, the arrangement points toward continuity. Rhodes remains involved in both efforts, and the official who requested his stay framed it as keeping continuity, so contractors have little reason in the reporting to expect a change of direction on either rule. The Oct. 19 comment deadline for the second FAR tranche still stands, and companies with concerns about the rewritten parts should file on time rather than wait for a new OFPP leader.
The weaker position of an SGE matters more over the longer term. The FAR Council is the venue where agencies work through rule text, and the official who normally chairs it and holds statutory authority has left the role. If agency negotiations stall, as the former officials warn, contractors could see later tranches and final rules arrive more slowly than planned, extending the period in which they work across old FAR text, class deviations and proposed revisions at the same time.
The 130-day cap on SGE service in any 365-day period also raises a practical question about how long Rhodes can stay involved at this level. Companies tracking the FAR rewrite should watch for an announcement naming an acting or permanent OFPP administrator, since the OFPP administrator chairs the FAR Council.
For firms subject to CAS, the picture is clearer. The final rule is already in effect, so the question is no longer who leads the rewrite but how quickly contractors adjust their accounting practices to the smaller set of standards and the expanded reliance on GAAP.
