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Changes to GSA Federal Acquisition & Procurement Practices on Hold
In early February 2025, the General Services Administration (GSA) announced significant changes to the Federal Acquisition Regulations (FAR) and procurement practices, responding to President Trump’s Executive Order (EO) on merit-based contracting. These changes, which took effect on February 15, 2025, aimed to eliminate diversity, equity, and inclusion (DEI) factors from federal contracting source selection criteria.
EO 14173, signed on January 21, 2025, sought to end illegal preferences and discrimination, promoting individual initiative, excellence, and hard work. GSA Acting Administrator Stephen Ehikian stated the changes would help industry sell products and services to the government. Federal Acquisition Service (FAS) Commissioner Josh Gruenbaum described the deviations as initial steps to transform the FAR into a sensible guideline. He noted the current 2,000-page FAR is burdensome and outdated.
Under the new guidelines, contracting officers were to amend new and open solicitations and modify existing contracts. These changes did not affect existing equal opportunity provisions for veterans and workers with disabilities, nor civil rights laws.
However, a federal judge in Maryland ruled in favor of Baltimore City, labeling the EO as likely unconstitutionally vague and potentially discriminatory. Judge Adam Abelson granted a preliminary injunction against parts of the EO, preventing the termination or modification of federal contracts labeled as equity-related. This ruling provides temporary relief for federal contractors concerned about being targeted for programs classified as “illegal” DEI.
The Trump Administration is likely to appeal the injunction, potentially leading to a Supreme Court review.
Tags: acquisition, DEI, contracting officers, executive order, FAR, federal contracts, first amendment, GSA, injunction, merit-based contracting, procurement
