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Tag: federal procurement

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.

15% Goal for Small Disadvantaged Businesses

When it comes to Diversity, Equity, and Inclusion (DE&I) the Biden administration is making good on its promises. The administration issued an executive order rescinding the Trump administration policies that weakened the diversity, equity, and inclusion training programs at agencies and federal contractors. In addition, the Office of Management and Budget issued a request for information (RFI) searching for DE&I solutions to enhance a number of government activities. (Government Executive May 19, 2021)

This particular RFI appears to be a crowd-sourcing application for policy solutions. It shows that the current administration is very serious about DE&I and their willingness to accept changes and an openness to new and different ways of viewing the inner workings of the government. (ibid)

It appears the administration is looking for better ways to leverage the government’s spending capability. To make sure all receive their fair share and to help close the income, wage, and opportunity gaps. The administration has initiated a 15% goal for federal contract dollars to go to small disadvantaged businesses. Although this looks like a great opportunity it is actually quite hard to measure how many dollars actually funnel through prime contractors to their subs. Figuring out how to measure the dollar flow would be a good start, then putting the 15% goal into effect. Progress is measurable at that point. (ibid)

So where are we today? Can the administration succeed with its DE&I goals? The question becomes, “how do we know?” Steps are clearly headed in the right direction, however, a commitment and a baseline are needed to end up where we want to be.

Are you a small disadvantaged business looking into GSA? Give us a call.