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Major Overhaul Underway for Federal Acquisition Rules
The federal government is embarking on a significant effort to reshape its acquisition landscape, aiming for greater efficiency and effectiveness. This major overhaul, described as the biggest since the 1990s, was officially kicked off by two executive orders signed on April 15th.
At the heart of this reform is the daunting task of rewriting the Federal Acquisition Regulation (FAR). This document currently spans a massive 2,000 pages. The goal is to slim it down, keeping only regulations that are statutorily required or that directly ensure efficient and effective acquisition. Simultaneously, the administration is pushing to reinvigorate the requirement to buy commercial products and services whenever possible, a principle established by the Federal Acquisition Streamlining Act.
This isn’t a quick fix; those leading the charge are asking for patience and flexibility from all involved. The initial draft of the new FAR is targeted within six months, but the overall process is expected to be turbulent.
A key promise is transparency and collaboration. The team rewriting the FAR plans to listen to all comments and intends for the process to be open, engaging, and iterative. An OMB website is being set up specifically to bring transparency to federal procurement, offering updates on regulations, buyer guides, and the reform process itself. Implementation guidance from OMB is also expected shortly, which is seen by experts as a vital guidepost for this effort.
While the administration is driving this change, there appears to be growing support and alignment with Congresson acquisition reform. The executive orders share similarities with legislation like the Forge Act. Congressional staff emphasize the critical importance of implementation, arguing it’s even more vital than having the perfect policies and laws in place.
For the Department of Defense (DoD), a major focus is moving towards a portfolio management approach for acquisition. This concept moves away from specifying exactly what to buy from a particular company. Instead, it focuses on defining capability sets, allowing for repeated competition and adapting to technological advancements without complex approval processes. This requires more flexible requirements and budgeting structures, moving away from narrowly defined budget lines tied to specific programs or companies. As a starting point, there’s an effort to consolidate budget line items, particularly the numerous small ones that are programmed years in advance, creating friction.
Successfully navigating these changes will also require addressing workforce challenges. With many people leaving federal service, the question of who will do all the work to implement these initiatives is crucial. Driving these reforms will require policy changes, including changes to workforce evaluation structures.
Ultimately, the effort is framed as a collaborative undertaking involving industry and government, all working together with the shared goal of delivering capabilities for the United States government. While challenges remain and not every question has a final answer, the commitment to improving the procurement system is clear.
Tags: federal acquisition reform, OMB, FAR rewrite, executive orders, government contracting, DoD acquisition, portfolio management, workforce challenges, transparency, Congress