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Month: May 2025

Trump Administration Moves to Overhaul Federal Procurement Rules

On April 15, 2025, President Trump signed two executive orders (EOs) aimed at transforming federal procurement. These actions directly impact contractors by pushing the system toward commercial solutions and simplified regulations. Insidegovernmentcontracts.com April 16, 2025

EO #1: “Restoring Common Sense to Federal Procurement” (FAR Reform EO)

This EO directs the Office of Federal Procurement Policy and the FAR Council to revise the Federal Acquisition Regulation (FAR) to include only what statutes require or what’s essential to sound procurement. Agencies must:

  • Appoint senior officials by April 30 to align their procurement rules.
  • Follow interim deviations and guidance ahead of final FAR amendments.
  • Prepare for potential “sunset” of non-statutory FAR clauses after four years unless renewed. (ibid)

OMB will issue implementation guidance by May 5 and enforce a “ten-for-one” rule—repealing 10 regulations for every new one added.

EO #2: “Ensuring Commercial, Cost-Effective Solutions in Federal Contracts” (Commercial Solutions EO)

This order requires agencies to prioritize commercial products and services under the Federal Acquisition Streamlining Act (FASA). Contracting officers must:

  • Justify any pending non-commercial procurements by June 14.
  • Submit their justifications for senior procurement executive (SPE) review within 30 days.
  • Obtain SPE approval for any future non-commercial contracts, with market research, price analysis, and rationale. (ibid)

Agencies must report progress to OMB within 120 days and annually thereafter, detailing compliance with FASA and progress on implementing the Order’s commerciality preference. (ibid)

What Contractors Should Do

  • Expect regulatory shifts that may change compliance obligations mid-contract.
  • Review current proposals to identify where you can frame your offering as a commercial item.
  • Engage proactively with contracting officers to support market-based solutions and pricing.

These changes aim to streamline procurement, reduce regulation, and shift focus toward cost-effective, commercially available solutions. (ibid)

Not certain how to frame your product/service as commercially available? Give us a call.

What’s Next for Federal Acquisition? David Berteau’s Parting Insights for Government Contractors

As David Berteau steps down from his role as CEO of the Professional Services Council (PSC), federal contractors would be wise to pay close attention to the lessons he leaves behind. With over four decades in federal acquisition, from the Pentagon to PSC, Berteau has seen the full arc of government contracting’s evolution and knows exactly where the industry needs to go next. (Federal News Network April 29, 2025)

From Inputs to Outcomes: A Call for Smarter Procurement

“The government used to buy results. Now it buys labor hours and storage capacity,” Berteau said in a farewell conversation with Federal News Network’s Tom Temin. His message to contractors is clear: success in the coming era will depend on shifting the conversation with agencies back to mission outcomes—not just technical specs or cost ceilings. (ibid)

For firms competing in a crowded, compliance-heavy space, being outcome-focused is more than a strategy—it’s a differentiator. “We need to help the government define what success looks like, and tailor solutions to achieve that,” he emphasized. (ibid)

Tech Innovation Has Left the Building—and That’s an Opportunity

Gone are the days when the Pentagon seeded cutting-edge technology. Today, Berteau said, commercial markets drive innovation, and contractors must be fluent in adapting those tools for government use, securely, affordably, and at scale. (ibid)

“Most new technology now comes from the global commercial space. The government’s role is still critical, especially for defense but the dynamic has flipped,” he noted. (ibid)

Contractors that understand how to integrate commercial tech into mission-specific architectures, from cloud platforms to edge computing, are already outpacing those still anchored in legacy systems. (ibid)

The Competitive Edge: Culture and Mission Alignment

For government service providers, Berteau stressed that culture is the real competitive advantage. “You can’t sustain success in this market without a commitment to the mission,” he said. “The red tape is real. If your people aren’t motivated by public service, they won’t last.” (ibid)

This alignment is especially critical in today’s talent market, where attracting and retaining cleared, capable professionals remains a top challenge. Contractors who invest in a strong mission-driven culture, Berteau argued, will win, not just the next bid, but long-term relevance. (ibid)

Politics Matter, But Execution Wins

While policy shifts and partisan changes affect contracting conditions, Berteau reminded industry leaders to stay focused on execution. “The best companies in this space don’t get distracted by politics. They stay grounded in what matters: delivering value, staying compliant, and helping agencies succeed.” (ibid)

With a new wave of acquisition reform always around the corner, staying agile and compliant remains essential. “You can’t perform if you’re not compliant. And if you don’t perform, you won’t be around for long,” he said bluntly. (ibid)

Still in the Fight—Just Not Full Time

Though Berteau is stepping back from day-to-day operations, he made it clear he’s not exiting the federal contracting world entirely. “I’ve got a lot left to say and do. I’ll keep writing, advising, and staying connected.” (ibid)

For government contractors navigating increasing complexity, Berteau’s departure marks the end of an era, but not the loss of insight. His advice to the industry: stay competitive, stay compliant, and above all, stay aligned with the mission. (ibid)

Questions concerning the changing federal acquisition landscape? Give us a call.