On April 15, 2025, President Trump signed an executive order aimed at significantly reforming federal procurement practices, citing longstanding inefficiencies and unnecessary bureaucratic complexity in the current system. The White House emphasized the goal of creating a streamlined, efficient, and agile procurement framework by cutting back on what it considers excessive regulatory requirements contained within the Federal Acquisition Regulation (FAR).
The executive order, titled “Restoring Common Sense to Federal Procurement,” mandates that within 180 days, the Administrator of the Office of Federal Public Procurement Policy and the Federal Acquisition Regulatory Council must amend the FAR, preserving only those regulations required by law or deemed essential for effective procurement and national security.
In issuing this directive, the Trump administration pointed to criticisms in previous reports, such as the 2024 Senate report “Restoring Freedom’s Forge” and a 2019 Advisory Panel report, both highlighting significant inefficiencies and overly burdensome rules within the FAR. Currently, the FAR encompasses over 2,000 pages of regulations, which the administration asserts hinders timely and cost-effective procurement.
As part of the reform, the administration instructed each federal agency involved in procurement to designate senior officials within 15 days to collaborate closely with the Administrator and FAR Council. Additionally, the Office of Management and Budget must issue guidelines within 20 days to ensure consistent policy implementation across agencies.
A significant provision of the order introduces a “regulatory sunset,” meaning any FAR regulation not mandated by statute could expire after four years unless specifically renewed by the FAR Council. This sunset clause aims to maintain a leaner regulatory environment moving forward, limiting the potential for future bureaucratic growth.
The administration argues these steps will enhance efficiency, reduce costs, and promote greater participation by the national and defense industrial bases in government contracting. However, critics may view the rapid timeline and broad deregulation mandate as potential risks, questioning how agencies will balance the drive for simplification against the need for accountability and oversight in spending nearly $1 trillion annually.
Implementation of this executive order is subject to existing laws and the availability of funds, and does not grant enforceable rights to external parties.