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President Trump Issues Executive Order 14275 to Streamline Federal Procurement
In a move aimed at reforming the federal acquisition process, President Trump issued Executive Order 14275 (EO 14275) on April 15, 2025. Titled “Restoring Common Sense to Federal Procurement,” this executive order seeks to reduce the complexity and size of the Federal Acquisition Regulation (FAR) and associated agency acquisition supplements.
EO 14275 builds upon the concerns raised in Executive Order 14192, which focused on alleviating unnecessary regulatory burdens across the entire Federal Government. The new order specifically targets the government contracting process, referencing reports that highlight the inefficiencies caused by the current regulatory framework. The goal is for the FAR to contain only provisions required by statute or essential to sound procurement. Any provisions that do not meet these criteria are targeted for removal.
The responsibility for identifying these provisions lies with the FAR Council, which includes key figures such as the Administrator for Federal Procurement Policy, the Secretary of Defense, the Administrator of NASA, and the Administrator of General Services. The Administrator of the Office of Federal Procurement Policy will coordinate with the FAR Council, agency heads, and senior acquisition officials to ensure the FAR aligns with the goals of simplicity, usability, efficacy, and the protection of economic or national security interests. Agencies are also required to designate a senior official to work on these reforms and review agency-specific supplements to the FAR.
Government contractors should be aware of the significant timelines associated with these reforms. The FAR must be amended by October 13, 2025, which is 180 days after the issuance of EO 14275. To guide the implementation, the Director of the Office of Management and Budget (OMB), in consultation with the Administrator, is expected to issue a memorandum by May 5, 2025, providing agencies with guidance to ensure consistency in the reform process.
Given that the FAR has grown to over 2,000 pages, the upcoming reforms are expected to reduce its size and scope significantly. The recommendations from the Section 809 Panel’s 2019 report on streamlining acquisition regulations are likely to be closely considered during this process. While the focus is on deregulation, it remains to be seen how these changes will align with new regulations introduced by other executive orders.
In conclusion, government contractors should closely monitor the developments stemming from EO 14275 and pay attention to any forthcoming memoranda and directives. The regulatory landscape governing federal procurement is poised for substantial change.
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