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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.